Komori has returned to profit in the first six months of the 2021/22 financial year, posting an operating income of ¥509 million compared to a previous operating loss of ¥1,119 million. Sales were up 18.4% to ¥40.1 billion (¥33.9 billion).
Recovery across the globe has given a bigger boost to incoming orders, which were 60% up on the first six months of last year and 10% higher than what Komori had budgeted for.
This came despite a fall in sales to Japan, reflecting a decline in orders for sheetfed presses at the start of the financial year in the spring. Sales of web presses also fell compared to the previous year, when companies were investing to upgrade press line ups.
In contrast, business in North America demonstrated a significant upswing, with sales rising 162.5% to ¥3.8 billion. The company says that government stimulus packages have encouraged companies to invest, something that has continued into the second quarter of the year.
Sales in Europe were also up as rates of vaccination increased. Komori’s revenue was also helped by inclusion of revenue from MBO for the full six months compared to for three months only in the equivalent period in 2020. MBO sales were up in their own right. It amounted to a 69% rise in sales to ¥9.8 billion.
This was close to the bounce back in China where the impact of Print China in June and strong economic growth in the country delivered a sales increase of more than 106% to ¥11.2 billion. This is also reflected in incoming orders. In China, these are more than double than last year, 58% higher in Europe, 30% up across North America and 34% higher in Japan. It is the highest level of incoming orders for the first six months for several years.
Elsewhere, normal activity is returning where Covid infection rates are falling, but not enough to lift sales in what Komori groups as other regions above those of last year and were 3% down. Sales have also been affected by pandemic induced delays to installations. Where this has affected currency presses, Komori is now making up for lost ground.
Supply chain issues which have led to an increase in shipping costs lie behind a rise in sales, general and administrative expenses. Improving exchange rates have helped lift the financial result. Its pretax profit reached ¥4.4 billion compared to a loss of ¥105 million last year, thanks, says Komori, to the sale of noncurrent assets helping to streamline operations.
