330180-91-00It is worth noting that this reduction plan is expected to incur a one-time cost of approximately 28 billion yen, which Omron has included in its full-year consolidated financial forecast for fiscal year 2024 (starting May 8, 2024).
Earnings documents show that Omron’s performance in the 2023 fiscal year showed a downward trend, with net sales declining from the previous fiscal year. Among them, the healthcare business benefited from the recovery in many places, especially the increased demand for blood pressure monitors and other healthcare devices; The social systems, solutions and services business is also benefiting from the growing demand for renewable energy. However, the industrial automation business saw sales decline year-over-year due to weak global manufacturing capital investment demand and distributor inventory adjustments. At the same time, the device and module solutions business experienced a significant decline due to weak demand from the consumer industry.
Omron performance in the past five years
In terms of the performance of the group’s business in 2023, Omron 330180-91-00pointed out that although it has achieved significant results in price optimization and variable cost control, the company’s gross profit margin has shown a year-on-year decline due to changes in the business structure and product mix, as well as the negative impact of inventory overhang and writedowns in the industrial automation business. In addition, selling, general and administrative expenses increased throughout the year due to higher personnel costs due to inflation, as well as the company’s increased investment in selective and systems investments.
Under the combined influence of the above multiple factors, Omron Group’s operating income declined significantly compared with the same period last year, and the net income of shareholders also decreased significantly by 8.1 billion yen. In particular, the reappraisal loss of JMDC Inc. ‘s stock became one of the significant factors in the decrease in net income. After excluding this special loss, Omron shareholders’ net income still amounted to 20.1 billion yen, but this was still down 72.8% compared to the previous year.
Special attention was paid to Omron’s Industrial automation business (IAB), whose net sales 330180-91-00accounted for 48 percent of the group’s total sales, but net sales in this business segment fell to 393,572 million yen in fiscal year 2023 from 485,738 million yen a year
