YKK Corporation reported that April-September 2016 consolidated sales decreased by 8.1% from the year before to 348 billion yen. Operating profits fell 14.6% to 33.1 billion yen, and net profits dropped 22.4% to 20.1 billion yen.
Its Fastening Product business division posted increases in sales of items for spring/summer apparel in Asia excluding China, and sales of high value-added products in Europe also grew. However, the division’s sales decreased by 15.2% to 149.5 billion yen because of the stagnant apparel retail market in China, and because sales declined after the conversion into yen due to the appreciation of the Japanese currency. Despite continuous cost reduction efforts and declines in raw material prices, operating profits fell 19.7% to 28.6 billion yen due to decreases in the sales volume and operation rates, increases in fixed manufacturing costs due to higher unit labor costs in growth markets such as Asia, and the fluctuation of exchange rates.
In regard to the full fiscal year, YKK expects to achieve sales of 710 billion yen, operating profits of 58 billion yen and net profits of 40 billion yen.