Senior Vice President; Group Executive, Power Business GroupShigeru Kobayashi
Promoting Streamlining to Improve Profits and Losses
Results for fiscal 2017 showed net sales of 54.4 billion yen while, with regard to profits and losses, various factors such as the continued streamlining of production systems contributed to a reduced deficit margin with operating losses of 4.7 billion yen.
Business in insulators was sluggish as a result of Japanese electric power companies reducing capital investment. With regard to NAS battery business, 1.2-megawatt NAS batteries were delivered to Dubai to help in meeting the time-shift power consumption needs of large-scale solar power plants being constructed in the Middle East; however, due to a lull in construction activity, no other major shipments were made.
In fiscal 2018, net sales are projected to be 56.0 billion yen with operating losses of 4.0 billion yen, meaning a continuation of deficits despite a slight increase in revenues compared with the previous period.
For insulator business, demand within Japan is expected to continue its sluggish trend, while overseas demand in the Middle East and North America is expected to be slow as well.
With regard to NAS battery business, while demand will increase mainly for users in Japan to meet the rapidly spreading adoption of renewable energy, the total number of shipments remains low and figures will remain in the red.