Although production in the automotive industry showed signs of recovery due to the alleviation of semiconductor and parts shortage, demand for tools, primarily for molds, was unable to recover. Amid the continuation of reduced demand for smartphones and PCs, some products in the market of semiconductor and electronic components and devices continued to perform well, and showed signs of polarization. Overseas sales to Greater China were sluggish.
Consolidated net sales in 1Q were ¥2,204 million, down 6.4% YoY.
Consolidated ordinary profit was ¥332 million, down 38.6% YoY. Ordinary profit margin was 15.1%, down 7.9 pp YoY.
Domestic net sales decreased by ¥18 million, down 1.2% YoY and overseas net sales decreased by ¥132 million, down 17.5% YoY. Overall net sales decreased by ¥151 million, down 6.4% YoY.
Cost of products manufactured, including material costs and outsourcing expenses decreased by 5.6% YoY, as a result of the Company narrowed down its production volume and produced various types of products, in order to enhance its wide-ranging product inventory. However, as valuation loss on finished goods increased, cost of sales increased by ¥20 million, up 1.9% YoY.
In SG&A expenses, selling expenses increased by 14.9% YoY due to an increase in travel expenses associated with the resumption of sales activities and exhibition costs. Overall SG&A expenses increased by ¥44 million, up 5.9% YoY.
As a result, operating profit decreased by ¥215 million, down 39.7% YoY, to ¥326 million, and operating profit margin decreased by 8.2 pp to 14.8%.
NS Tool Co. Ltd. published this content on 25 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 August 2023 02:31:01 UTC.
NS Tool Co Ltd is a Japan-based company mainly engaged in the production and sale of end mills, which are cutting tools that are attached to machining centers (machine tools) to process metals. The Company operates in two business segments. End Mill segment is engaged in the manufacture and sale of cutting tools centering on carbide small-diameter end mills. Others segment is engaged in the manufacture and sale of plastic moldings focusing on tool cases. The product sizes include end mill (6mm or less), end mill (over 6mm), and end mill (others).
NS TOOL CO., LTD. 
