Kenji Minami
President and CEO

I sincerely hope that all of our shareholders are enjoying continuing health and prosperity.

I am also happy to take this opportunity to say that we very much appreciate the exceptional support and understanding that you have always extended to us.

Now, I would like to report Shibaura Mechatronics Group’s consolidated accounts for the Group’s 102st fiscal term, the period from April 1, 2010 to September 30, 2010.

Market Trends and Consolidated Results for the First Fiscal Half.

Shibaura Mechatronics Group’s main customers operate in the LCD panel business, an area where we saw upward momentum in capital investment. However, in China we have seen an overall delay in executing large scale investments in plant and equipment.
Conversely, the semiconductor industry saw continued capital investment, against a background of increasing demand for digital information equipment.We also saw increased activity in connection with solar batteries and rechargeable batteries, both areas where rising demand is expected in the future.

In these circumstances, Shibaura Mechatronics Group has strived to strengthen its management constitution through reinforcing measures to win orders and, in addition to efforts to cut fixed costs, by promoting cost restructuring through standardization and cutting lead times.The impacts of the strong yen and weak won and intensified price competition made it increasingly tough to achieve the results anticipated in our original forecast. However, as a result of the measures detailed above, we achieved higher levels of revenue and profit than in the same period a year ago.

As a result of the foregoing trends, first half consolidated sales stood at 22,562 million yen, we recorded a consolidated ordinary loss of 272 million yen and a consolidated net loss of 7 million yen.

It is with every regret that I must inform you that we are forced to withhold the interim dividend for the current term.

We have always been able to rely on our shareholders, and I hope that we may look for your continuing support in future.

 

 

Desember 2010