As I offer this message for the interim financial report for the fiscal year ending January 31, 2012, I would like to express my warm gratitude to the shareholders for their continuing courtesy, while also expressing my sincere sympathies to those affected by the Great East Japan Earthquake.
During the six months ended July 31, 2011, although the Japanese economy was plunged into difficult conditions owing to the impact of the Great East Japan Earthquake, the economy edged towards a gradual recovery as a result of a rapid recovery in business activity. Even so, the future direction of the economy remains uncertain owing to the impact of electric power shortages resulting from the accident at the nuclear power plant, slowdowns in economies overseas, and furthermore, the rapid appreciation of the yen in the foreign exchange market, among other factors.
Amid such a business environment, in the Group's mainstay Plastic Molding Business, delivery volumes of its mainstay product, 300mm-silicon wafer shipping boxes, "FOSB," continued to go strong as a result of efforts to implement aggressive sales measures and cost reductions, despite the impact of the earthquake.
However, with respect to profits, conditions were difficult owing to factors such as appeals for cost reductions from customers and soaring prices for raw materials. In addition, as the Molding Machine Manufacturing Business has been affected by sluggishness in corporate capital investment resulting from the earthquake, sales and profits both remained weak despite the continuing implementation of aggressive sales policies and measures to improve profits.
As a result, net sales for the six months ended July 31, 2011 amounted to 6,018 million yen, operating income came to 1,180 million yen, and ordinary income came to 1,340 million yen. In addition, net income was 646 million yen mainly because of the recording of 104 million yen of income taxes-deferred related to income tax rate change for consolidated subsidiaries, and 62 million yen of loss on adjustment for changes of accounting standard for asset retirement obligations.
Regarding the future outlook, in the Group's mainstay Plastic Molding Business, although current deliveries continue to be strong, difficult conditions are forecast to continue as there are uncertainties regarding the future direction of the semiconductor market from the autumn onwards.
Under such a business environment, the Group will aim for a recovery in profitability by working to expand its market share by increasing its competitiveness in terms of quality, and striving for further cost reductions.
I would like to ask the shareholders for their continuing understanding and support.