We would like to express our sincere appreciation to all of you for continually providing us with such generous support.
We wish to offer our deepest condolences to those who have lost loved ones to the novel coronavirus infection (COVID-19) and wish for the earliest possible recovery for all those who are now fighting the infection. We sincerely hope for success in the containment and eradication of this virus at the earliest possible time.
The world economy showed weak growth in this fiscal year, mainly due to the slowdown of the US and Chinese economies resulting from the prolonged trade war between the two countries, the UK’s withdrawal from the EU, and the economic slump in Europe. The Japanese economy also experienced sluggish growth against the backdrop of the global economic slowdown.
Since January 2020, the spread of the COVID-19 pandemic has led to restrictions on movement, the suspension of production, distribution and other economic activities, and a slump in consumer spending, causing grave impacts on the global economy.
The automotive industry, a key business area of the Ohashi Technica Group, saw a decrease in sales both in Japan and abroad (except for some finished car manufacturers), resulting in a reduction of total automobile production.
Under these circumstances, we at the Group have strived to enhance our organizational performance by aggressively promoting business development. However, we suffered declines in consolidated net sales from the previous year, which in japan ,can be attributed to decreased production resulting from a fall in demand for commercial vehicles manufactured by our major clients in the Asian market and the terminated production of specific parts. And overseas, primarily to decreased production resulting from declined sales of Japanese auto manufacturers in the Americas and Europe and influences from currency market fluctuations. Our consolidated operating income also declined year-to-year due to decreased sales in each region, soaring prices for raw materials overseas, US tariff hike on steel, and rising procurement costs resulting from the depreciated local currencies in China and the UK.
With the global economy expected to be hindered due to the COVID-19 pandemic, automobile sales both in Japan and abroad will further fall, making our business environment harsher.
As a global supplier, we will continue our efforts to reinforce our business foundation and enhance our corporate value by making optimal use of our “Factory & Fabless” capabilities.
We look forward to your continued support.
President and CEO
Ohashi Technica, Inc.