As a result of efforts to develop customers in middle markets centering on Asia, JUKI Corporation increased its consolidated net sales during January-June 2018 by 10% year-on-year to 53,235 million yen. Operating profits rose 0.9% to 3,650 million yen, while net profits fell 19.2% to 1,942 million yen. The strong yuan, weak dollar, increased market capturing expenses and other factors squeezed profits.
JUKI President Akira Kiyohara says, “In addition to greater losses caused by currency appreciation due to the weakened dollar, the 500-million-yen decrease in gross profits from China due to the appreciation of the Chinese currency and 400-million-yen market capturing costs used for discount sales reduced ordinary profits.”
The main market of China continued aggressive capital investments since last year, and smart solutions including high-end sewing machines were in large demand. JUKI is strengthening its sewing machinery and systems business that makes up production lines such as automatic sewing machines, robot sewing and automatic conveying systems, for regaining profits in the fiscal second half.
In regard to priority measures from FY 2018, JUKI is quickly responding to factory automation in middle markets such as Vietnam and Indonesia, and is providing high value-added services in China, which is shifting to high-end machines. Even in Bangladesh, which has a more than 50% share in industrial sewing machines, high-end machines are said to be on the rise.
For the fiscal year ending in December 2018, the company expects to achieve net sales of 104,000 million yen (up 0.3% over the previous fiscal year), operating profits of 5,500 million yen (down 32.6%) and net profits of 3,500 million yen (down 38.0%).