Japanese Fastener Industry Sees Rise in Revenues

The Japanese media surveyed 13 local public fastener companies for their performance in the first half of 2017 financial year, finding that the majority reported rise in revenues with concerning profit issues. In revenue performance, all 13 companies reported growth. In the previous survey the majority reported revenue decrease, but this time in contrast the absolute majority reported revenue growth.

In terms of operating profits, 7 companies reported growth and 6 reported decrease, which means 1 additional growth company compared with the previous investigation. However, this also means, among all the 13 revenue-growing companies, the ones that reported profit decrease have amounted to nearly half the proportion.

In terms of ordinary profits, 9 companies reported growth and 4 reported decrease, which means ordinary profits performance is better than operating profits. Ordinary profits is improving compared with the last investigation. In terms of net profits, 7 companies reported growth and 6 reported decrease, which is in sharp contrast to the last investigation and which means net profit performance is improving.

Overall, revenue, operating profit, ordinary profit, and net profit performances are in good condition, but profits have not caught up with the rising revenue trend in all 13 companies. This could be attributed to high material costs, but fortunately the Japanese machinery industry is performing well and infrastructure investment is supporting from the back, so revenue decrease has not occurred. From now on, improving profit margin will be the task for the Japanese fastener industry.