Message from the President
Summary of results for fiscal 2011
During fiscal 2011, the business environment surrounding the Company remained severe, given the impact of the Great East Japan Earthquake, the flooding in Thailand, and the challenging global economic situation mainly reflected by the European financial crisis, as well as the impact of the continued appreciation of the yen, which reached historic levels.
In this management environment, under its policy of quality-first management, the CMK Group focused across the board on improving the quality management, bolstering productivity, thoroughly streamlining production costs, and implementing operational reform in an effort to improve its performance.
On the sales front, sales of automobile-related products were at almost the same level as the previous fiscal year, after a recovery in the second half of the fiscal year under review, despite a drop in sales in the wake of the earthquake. Meanwhile, orders for AV and digital home appliances and telecommunications-related products declined year on year, mainly reflecting escalating competition. As a result, the Group recorded net sales of 80,563 million yen (down 7.4% from the previous fiscal year).
Looking at profits, despite the effects of lower net sales, operating income amounted to 757 million yen (compared with an operating loss of 1,041 million yen in the previous fiscal year), and ordinary income reached 346 million yen (compared with an ordinary loss of 1,991 million yen).
Net loss amounted to 2,873 million yen (compared with a net loss of 5,726 million yen in the previous fiscal year), chiefly reflecting the recording of temporary expenses, necessary for business restructuring in Japan, as extraordinary losses.
Outlook for fiscal 2012 and priorities
In fiscal 2012, the management environment is likely to remain difficult, due to concerns over the financial crisis in Europe and other negative factors. Responding to this management environment, under the policy of quality-first management, all employees of the Company will fully focus on “conscientious manufacturing.” As “CMK, a quality manufacturer,” and the leading manufacturer of printed wiring boards, the Company will also strive to gain the absolute trust of its customers, business partners, and society, and contribute to society through its business activities. To achieve this, the Company will make an effort to improve its results by carrying out the initiatives described below.
(1)Improve the earnings structure
The Company will aim to develop stable earnings strength by improving the earnings structure of the overall Group.
(2)Strengthen the ability to respond to changes in the
The Company will respond to the severe management environment by striving to improve its competitiveness in terms of quality, technologies, costs, and services.
(3)Review the business structure
The Company will work to optimize its business structure and scale in Japan by taking steps such as reviewing the direction of its high-value-added business. Overseas, it will strive to strengthen the production systems that are based in the optimal locations to respond to demand in growing markets.
Message to shareholders
The basic policy of the CMK Group with respect to returning profits to shareholders is to pay steady dividends while maintaining a stable level of internal reserves, which are to be effectively used to expand operations and maintain and strengthen competitiveness. During the fiscal year under review, the Group was forced to record substantial losses. However, because certain sectors showed an economic upturn in the second half of the fiscal year under review, the Company also improved its performance, achieving ordinary income on a full-year basis. As a result, in line with its basic policy—to pay the highest dividends possible to its shareholders—the Company has determined that it will pay a year-end dividend of 2.50 yen per share. All Group employees are making their best efforts to squarely address management issues, achieve income on a full-year basis, and improve corporate value. We ask for the continued support and understanding of our shareholders.