Ryobi Forecasts 126B Yen Annual Sales for Die Casting

Ryobi held a press conference on its first-half-year financial results for first half of fiscal 2011 started in April in Tokyo on Thursday and gave an outlook that die casting business unit would post 126.2 billion yen of consolidated net sales in a full year of fiscal 2011, which is higher 6.8% higher than figure in a year earlier. Net sales would increase by 3% to 87.6 billion yen in domestic market while the sales would increase by 16.3% to 38.6 billion yen at offshore.

Ryobi explained its production subsidiary in Dalian, China is expected to double its annual revenue to 8 billion yen in fiscal 2011 while Thai sales subsidiary, Ryobi Die Casting (Thailand) started product supply to Mitsubishi Motors’ local factory in October.

Consolidated Net sales of die casting business unit were 59.1 billion yen for first half of fiscal 2011, which increased by 1.5% from a year earlier. The operating profit decreased by 17% to 3.3 billion yen. Die casting orders and sales increased at offshore market mainly in North America and China while the profit remained low level due to order decrease and cost upsurge in Japan after the Japan Earthquake.

Ryobi continues to expand offshore operations and networks under the market condition. The second production subsidiary in China is scheduled to start operation in April 2012. China’s two subsidiaries are expected to post annual revenue at total 15 billion yen in fiscal 2012 and 20 billion yen in fiscal 2013. Ryobi Die Casting (Thailand) aims annual revenue at 1 billion yen in fiscal 2013.