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On August 6, Nippon Paint announced its consolidated business results for the first quarter of the fiscal year ending March 31, 2008. The following is a summary of results.
During the period under review (April 1 to June 30, 2007), the Japanese economy continued to enjoy a gradual upturn. This is mainly due to the robust capital investment of the private sector, increased personal expenditures resulting from steady recovery of employee income, and growing exports. However, there are several factors of concern that render the future uncertain, including escalating prices for crude oil and rising market interest rates that could negatively impact corporate earnings.
The Nippon Paint Group recorded consolidated net sales of 63,371 million yen, a year-over-year increase of 21.1%. The main contributors to this increase included expanded sales of automotive and marine coatings, acquisition of the North American plastic coatings business last year, and the turning of an equity method affiliate in Thailand into a consolidated subsidiary. However, raw material prices continued to rise, along with soaring crude oil prices and increasing pressure from worldwide demand expansion. As a result, consolidated operating income totaled 2,649 million, or a year-over-year decrease of 3.6%. Consolidated income before income taxes was 3,766 million yen, or a year-over-year increase of 6.1%, thanks to increased equity investment gains and the posting of foreign exchange gains.
In April 2006, the Nippon Paint Group launched its long-term management plan targeting fiscal 2010. Accordingly, we will continue striving to meet our numerical targets while also concentrating our energy on issues and challenges our group faces, and overcoming our weaknesses. With "visionary ideas and unsurpassed craftsmanship" as our motto, we will adhere to "credibility" as our guiding principle, continuing to move ahead by drawing on our unified efforts and collective strengths.
Your continued support and patronage will be greatly appreciated.
