- Net sales for the 2010 fiscal year decreased to 28,403 million yen (down 27.3% year on year).
- Operating costs percentage increased due to the adjustments in production volume, the increased cost of supplies, the strong yen and other factors.
- As a result, operating income was 708 million yen (down 85.2% year on year).
- With increased income taxes due to the partial reversal of subsidiaries’ deferred tax assets and the like, Roland DG ended the fiscal year with a net loss of 82 million yen (versus a net income of 2,892 million yen in the previous year).
"During the latter half of this year, the global economy gradually recovered from its plummet following the financial shock precipitated by the Lehman Brothers bankruptcy. However, consumer spending and corporate sentiment toward capital investment remained weak throughout the year.
Roland DG Group responded to this severe economic climate by reducing expenses and streamlining operations to focus on strategic areas of our business. Identifying these major changes in the global economic climate as a historic turning point, we also began working to reform our corporate structure to better facilitate medium and long-term growth.
In the first half of the year, we responded to the changing economy by making strategic adjustments to production and shipping, reduced inventory throughout our supply-chain and increased our ability to rapidly respond to market conditions. In the second half of the year, we were able to bring new products to market. Thanks to these immediate actions and other factors, our profitability began to recover in the second half of the year.
By business segment, net sales of printers, 3D products, and other non-supply products slumped due to a decreasing corporate interest in capital investment and the increased difficulty of our customers to obtain financing. However, net sales gradually recovered in the second half of the year, led mainly by supplies. By region, net sales in North America and Europe hit bottom in the first half of the year with a gradual recovery thereafter, but the level of recovery was weak overall. Coupled with the adverse impact of the strong yen, the result was a large year-on-year sales decline. Meanwhile, sales in Japan were strong as we made progress in cultivating markets for our UV printers while in Asia, particularly China, our active sales efforts succeeded in limiting the size of the drop in net sales.
As a result of the above, net sales for the 2010 fiscal year decreased to 28,403 million yen (down 27.3% year on year). Our operating costs percentage increased due to the adjustments in our production volume, the increased cost of supplies, the strong yen and other factors. As a result, operating income was 708 million yen (down 85.2% year on year). With increased income taxes due to the partial reversal of subsidiaries’ deferred tax assets and the like, we ended the fiscal year with a net loss of 82 million yen (versus a net income of 2,892 million yen in the previous year).
While elements of the global economy remain uncertain, we expect to achieve increased sales and income for the 2011 fiscal year through aggressive sales activities with a focus on new products, continued maintenance of appropriate inventory levels, and a commitment to streamlining our operations by improving production efficiency and lowering costs.
Roland DG Group continues to uphold our corporate vision of using digital technology to transform imagination into reality. Professionals worldwide rely on Roland solutions everyday in the sign, grand-format, sublimation, UV inkjet, digital graphics, vehicle graphics, fine art, photography, packaging, label, engraving and 3D modeling industries. Going forward, we will continue to explore profitable new markets for our innovative engineering expertise, such as the dental prostheses industry.