Tsudakoma Corp. reported that its consolidated net sales during the first half of the current fiscal year (December 2019 to May 2020) fell 43.2% compared to the year before to 11,548 million yen. Operating losses amounted to 1,530 million yen, as compared with operating profits of 640 million yen in the year before. Net losses totaled 1,850 million yen, as compared with net profits of 451 million yen during the six months between December 2018 and May 2019.
Textile machinery sales dropped 44.2% to 8,951 million yen, with segment losses of 862 million yen, as compared with segment profits of 807 million yen in the year before.
According to the company, the first quarter showed some signs of improvement as the first-stage agreement on the reduction of additional tariffs between the U.S. and China had a favorable impact, such as the conclusion of contracts with new customers in China. However, the spread of the new coronavirus made it difficult to continue business negotiations, including the main markets of China and India as well as other markets.
China moved to lift restrictions on travelling from April, and consumption in the Chinese market were said to have been recovering, but new capital investments were low, as exports of textiles and apparel to the U.S. and Europe lacked a recovery.