During the fiscal year ended March 31, 2010, the Sysmex Group’s performance felt the impact of yen appreciation. Nevertheless, thanks to the expansion of our business overseas, we generated record sales and income. Year on year, net sales rose 3.9%, operating income grew 3.8%, and net income shot up 21.8%. The reasons for these changes were that sales and income improved in all overseas regions, and sales of reagents increased. At the exchange rates prevailing in the previous fiscal year, net sales would have increased 10.2%, and operating income 31.4%.
Bolstered by robust ongoing performance in China, our sales in the region surged 26.0% on a local currency basis. Operating income continued its steep climb, growing 126.2%. This solid expansion of overseas business pushed the Sysmex Group’s overseas sales ratio to 68.3% of its total.
In Japan, sales of simplified test kits rose substantially, owing to the spread of pandemic influenza. However, currency translation adjustments resulted in a decline in inter-area transfers from our operations in Japan to Group affiliates overseas. Consequently, sales and profits in the Japan geographic region were down year on year.
Major initiatives during the year included the expansion of our lineup of immunochemistry reagents. Meanwhile, in the Benelux countries we shifted to a direct sales and support organization. We established new subsidiaries in Spain and Vietnam, and we converted the HITADO Group in Germany to a subsidiary. These developments at overseas bases should accelerate our future business development on a global basis.
Although at the beginning of the fiscal year we had forecast dividends of ¥50 per share (interim and year-end dividends of ¥25 per share each), we raised the annual payout to ¥56 per share. This was the eighth consecutive year in which we raised dividends, and our consolidated payout ratio came to 29.4%. We plan to continue paying stable dividends going forward.
Our forecast for the fiscal year ending March 31, 2011, calls for consolidated net sales of ¥125.0 billion, operating income of ¥17.0 billion and net income of ¥10.8 billion.
I extend my sincere thanks to our shareholders, and ask for your continued support.
Hisashi Ietsugu
President & CEO |
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