On 4 February, the Group published results for the first nine months of the financial year to 31 December 2009 and for the third quarter.

 

The nine month figures reflect difficult markets around the world. Compared with the first nine months of last year (FY09) sales were down 15 per cent, after exchange adjustments.

 

The Group recorded a loss of ¥3 billion, against an operating profit of ¥30 billion in FY09 (both before amortization). Overall, progress on cash management and cost savings helped to reduce the impact of the economic downturn.

 

Results for the latest three months show a slight improvement over the preceding quarter (Q2 - from July to September 2009). Sales were up slightly (from ¥149 billion to ¥151 billion) with a positive operating profit of ¥4.1 billion (compared with an operating loss of ¥0.6 billion in Q2). 

 

The results were helped by improved BP pricing in Europe and government scrappage schemes in Automotive, with benefits from the restructuring programme also beginning to show through.

 

Group Finance director Mike Powell said “the improvement in Q3 has allowed us to revise the Group full-year forecast very slightly upwards. We expect profits to improve by ¥2 billion.  

 

However, it still means we expect to make an overall loss for the year, after interest and restructuring costs, of around ¥45 billion (approximately €338 million or US$484 million), compared with the loss of ¥28bn we reported in FY09. So, we need to maintain pressure on cash, debt reduction and costs, as well as improving our overall performance.