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During the first half of fiscal 2024, the fiscal year ending December 31, 2024, the global economy as a whole remained on a moderate recovery trend amid signs of a slowdown in inflation on the back of such factors as the prolonged implementation of monetary tightening policies by various countries. There were ongoing concerns, however, about a recession owing to a variety of factors, including persistently high interest rates in the U.S.
Despite indications of a shift in economic trends, including the move to lower interest rates by the European Central Bank, the outlook remained uncertain due to concerns surrounding overall economic stagnation caused by such factors as the slump in real estate market conditions in China and continued depreciation in the yen.
In each of the major markets in which the Star Micronics Group operates, overall demand for POS printers remained weak. In addition, demand in the U.S., Europe and Japan for the Group’s mainstay machine tools continued to stall. On a positive note, China’s recovery continued strongly.
Under these circumstances, the weak yen affected overall sales for the Star Micronics Group in the first half of the fiscal year under review. Due mainly to the significant decline in sales of machine tools, the Group recorded sales of ¥30,986 million, down 27.8% compared with the corresponding period of the previous fiscal year.
From a profit perspective, operating income was down 79.0% to ¥1,548 million, ordinary income decreased 73.6% to ¥2,008 million, and net income attributable to owners of parent declined 88.8% to ¥584 million owing to such factors as an increase in the tax burden resulting from the impact of tax effect accounting on unrealized income.