OMRON's First-Quarter Net Sales Climb 3.1%, to Record ¥209.8 Billion, Driven by Growth in Core Industrial Automation Business and Healthcare Business

Omron Corporation today announced its consolidated operating results for the first quarter of fiscal 2018, ending June 30, 2018.

Net sales increased 3.1%, to ¥209.8 billion, while gross profit rose 4.3%, to ¥87.7 billion; both new record highs for OMRON. These results boosted the gross profit margin by 0.5 percentage point, to 41.8%, also a record for a fiscal first quarter. Operating income declined 13.6%, to ¥19.6 billion, while net income attributable to shareholders contracted 5.4%, to ¥14.7 billion. Operating and net income fell as a result of an acceleration in forward-looking investments mainly in the Industrial Automation Business. However, OMRON maintains its full year forecast for income gains by fiscal year-end.

Sales in OMRON’s core Industrial Automation Business continued to expand, rising 7.3%, to ¥102.8 billion. This reflected the steady progress of i-Automation, a strategic concept for driving innovations at manufacturing sites targeted at meeting expanding worldwide demand for labor savings and automation. This business generated significant growth by providing optimal solutions to manufacturers in a range of sectors, most notably production investments by Japanese and American automakers and for investment demand in the semiconductor segment. This business was also supported by brisk demand for machinery exports principally in the European food sector, as well as for capital expenditure in Greater China’s growing semiconductor and solar power industries.

Healthcare Business sales advanced 8.5%, to ¥27.9 billion, stemming from favorable sales of blood pressure monitors, nebulizers, and low-frequency therapy equipment. Global online channel sales and more effective efforts to market blood pressure monitors in China made major contributions.

The Company reaffirmed its full-year results forecasts for fiscal 2018. Management forecasts net sales to rise 4.7%, to ¥900.0 billion, gross profit to increase 6.9%, to ¥382.5 billion, operating income to climb 7.8%, to ¥93.0 billion, and net income attributable to shareholders to advance 2.1%, to ¥64.5 billion. The Company plans to acquire treasury stock for a second consecutive year, investing up to ¥20 billion to purchase as many as 5 million shares in the year to July-end 2019. This buy-back plan underscores OMRON’s commitment to improving both shareholder returns and capital efficiency while investing extensively in business growth.

Yoshihito Yamada, OMRON President and CEO, commented that, "In the first quarter, our core Industrial Automation and Healthcare businesses were the main catalysts for growth. We are beginning to see the growth cycle accelerate—net sales growth and wider gross profit margins are enabling us to accrue capital to reinvest in business areas that will drive our growth in the future. OMRON will remain focused on meeting our full year earnings forecasts and achieving mid-to-long term business growth by executing the action plans that we set out at the beginning of the year, while paying close attention to market developments, given growing uncertainties surrounding trade issues.”

*Accounting Standards Update (ASU) No. 2017-07 of the FASB, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost is applied to the above results.

*Accounting Standards Update (ASU) No. 2017-07 of the FASB, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post Retirement Benefit Cost is applied to the above results.

Treasury stock acquisition framework
The Company is acquiring treasury stock to improve capital efficiency, increase shareholder value per share and enhance returns to shareholders.

About OMRON Corporation
OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think." OMRON's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries and regions. For more information, visit OMRON's website: http://www.omron.com/

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