During the first half of fiscal 2019 (1 April to 30 September of 2018), the Japanese auto industry’s production volume decreased relative to H1-18 due to the fadeout of a round of new vehicle stage effect. The global automobile production volume increased year on year due mainly to the increased demand in China, greater Asia, and Europe.
In this climate, despite an increase in new orders in the mainstay vehicle lighting equipment segment, the Koito Group’s net sales decreased 11.9% to ¥392.6bn. This is attributable to the status change of Shanghai Koito from a consolidated company to a company accounted for by the equity method at the end of September 2017, and disconsolidation of Shanghai Koito at the end of March 2018.
On the earnings front, although Koito implemented rationalisation in Japan and overseas, operating income decreased 6.4% year on year to ¥46.5bn, and recurring profit decreased 6.6% to ¥48.8bn. This was attributable also to the effect of disconsolidating Shanghai Koito and increased R&D expenses.
| / | Sales | Operating Income |
| Consolidated Results April to September, 2018 |
¥392bn (-11.9%) | ¥46bn (- 6.4%) |
| Forecast of Consolidated Results Fiscal 2019: April 2018 to March 2019 |
¥809bn (-4.7%) | ¥98bn (- 5.6%) |
