Shima Seiki Mfg. Co., Ltd. announced its consolidated financial results for the fiscal year ending March 2013 on the 1st. Sales fell 6.3% year-on-year to ¥34.97 billion. While the company recorded an operating profit of ¥883 million last year, it posted an operating loss of ¥508 million this fiscal year.
In addition to the decline in sales, a decrease in flat knitting machine production pushed down the gross profit margin. Meanwhile, the rapid correction of the yen's appreciation since the beginning of this year resulted in a foreign exchange gain of ¥3.119 billion. While the company posted an operating loss of ¥212 million last fiscal year, this fiscal year saw an operating profit of ¥4.168 billion. As a result, net income for the fiscal year was ¥1.754 billion, significantly exceeding the net loss of ¥642 million in the previous fiscal year.
In our core flat knitting machine business, sales in our key markets of China and Europe were sluggish due to unstable global economic trends until the first half of the third quarter. On the other hand, major Hong Kong knitwear manufacturers increased production of products for Europe and the United States, resulting in a sharp increase in sales in the fourth quarter. Turkish manufacturers, which serve as production bases for Europe and Russia, also expanded capital investment. Sales of computerized flat knitting machines grew steadily.
In the domestic market, sales exceeded the previous year's level, boosted by increased capital investment in WHOLEGARMENT flat knitting machines and the trend toward a return of production from China. Sales in our flat knitting machine business fell 6.3% year-on-year to 27.723 billion yen.
For the next fiscal year, we expect demand for equipment upgrades in China and Hong Kong, the main markets for computerized flat knitting machines. We are promoting machine efficiency and high added value, and are shifting to a quality-focused, proposal-based manufacturing approach. The company's performance forecast for the next fiscal year is sales of 47 billion yen, operating profit of 5.7 billion yen, ordinary profit of 6 billion yen, and net profit for the period of 4 billion yen.
In addition to the decline in sales, a decrease in flat knitting machine production pushed down the gross profit margin. Meanwhile, the rapid correction of the yen's appreciation since the beginning of this year resulted in a foreign exchange gain of ¥3.119 billion. While the company posted an operating loss of ¥212 million last fiscal year, this fiscal year saw an operating profit of ¥4.168 billion. As a result, net income for the fiscal year was ¥1.754 billion, significantly exceeding the net loss of ¥642 million in the previous fiscal year.
In our core flat knitting machine business, sales in our key markets of China and Europe were sluggish due to unstable global economic trends until the first half of the third quarter. On the other hand, major Hong Kong knitwear manufacturers increased production of products for Europe and the United States, resulting in a sharp increase in sales in the fourth quarter. Turkish manufacturers, which serve as production bases for Europe and Russia, also expanded capital investment. Sales of computerized flat knitting machines grew steadily.
In the domestic market, sales exceeded the previous year's level, boosted by increased capital investment in WHOLEGARMENT flat knitting machines and the trend toward a return of production from China. Sales in our flat knitting machine business fell 6.3% year-on-year to 27.723 billion yen.
For the next fiscal year, we expect demand for equipment upgrades in China and Hong Kong, the main markets for computerized flat knitting machines. We are promoting machine efficiency and high added value, and are shifting to a quality-focused, proposal-based manufacturing approach. The company's performance forecast for the next fiscal year is sales of 47 billion yen, operating profit of 5.7 billion yen, ordinary profit of 6 billion yen, and net profit for the period of 4 billion yen.
