(Unit:billions of yen)
2023/03[4Q] 2024/03[4Q] Changes
Net sales 175.0 179.4 +2.5%
Operating profit 15.8 12.9 -18.2%
Net income 13.6 10.7 -21.3%
Net sales
Operating profit
Net income
The global business climate remained uncertain for the Ushio Group in the fiscal year ended March 31, 2024. Downside factors included an ongoing worldwide recession, rising energy and raw materials prices owing to an ongoing war between Russia and Ukraine and further hikes in policy interest rates amid continued inflation in Europe and the United States. On top of that, the world economy slowed down amid sluggish domestic and external demand, one negative factor being a downturn in real estate development investments in China.

Under these circumstances, the semiconductor, electronic devices, and printed circuit board markets are showing signs of recovery of end-use demand for PCs, smartphones and other products worldwide. However, related capital investments are currently restrained and operations remain sluggish. For related cutting-edge IC package substrates market, demand also continues to be sluggish for final products, resulting in temporary curtailment of capital investment, which is a situation that requires keeping close tabs on trends. On the other hand, 5G deployments and the utilization of Internet of Things and artificial intelligence technologies are progressing, and related demand is expected to grow over the medium to long term. In the flat panel display market, LCD panels manufacturers continue to operate at low levels because stay-at-home demand had run its course. In the visual imaging market, cinema operations and capital investment worldwide recovered as normal economic activity resumed after the COVID-19 pandemic. The general imaging market environment remained solid as events and other activities continued to turn around The average exchange rate during the period under review was \144 to the dollar, with yen depreciating \9 from the previous year.

Consolidated net sales increased 2.5% year on year, to \179,420 million. Operating profit dropped 18.2%, to \12,976 million. Ordinary profit fell 20.1%, to \16,088 million. Profit attributable to owners of parent declined 21.3%, to \10,785 million.
Financial Results by Business Segments
*Due to segments have been changed from this fiscal year, therefore, there is not new segment information at this moment.
Net sales
(Unit:billions of yen)
Total 175.0 179.4 +4.3
Industrial Processes 89.4 82.1 -7.3
Visual Imaging 68.9 80.5 +11.6
Life Sciences 5.6 5.2 -0.4
Photonics Solutions 9.2 10.2 +0.9
Others 1.7 1.3 -0.4
Operating profit
(Unit:billions of yen)
Total 15.8 12.9 -2.8
Industrial Processes 18.2 10.8 -7.3
Visual Imaging 3.4 5.8 +2.4
Life Sciences -5.1 -2.3 +2.8
Photonics Solutions -0.2 -1.5 -1.2
Others -0.3 0.1 +0.5
Industrial Processes
UV Lamps
Sale for LCD panels remained sluggish due to the continued production adjustments at LCD panel manufacturers as stay-at-home demand had run its course. However, sales of UV lamps increased due to the solid sales for semiconductors and electronics devices following a gradual recovery in final demand for PCs, smartphones and other products. The currency effects from the depreciation of the yen also contributed to higher sales.

OA Lamps
Although demand was solid, sales of OA lamps declined as a reaction to increased demand in the previous term due to the easing of material shortages among set manufacturers.

Optical Equipment Lamps
Sales of optical equipment lamps declined due to the decrease in sales of light sources, primarily for LCD panels, caused by ongoing production adjustments by LCD panel manufacturers.

UV Equipment
Although demand for data center servers and others continues to rise along with the progress of 5G deployments and the utilization of Internet of Things and artificial intelligence technologies, sales of the large field stepper for cutting-edge IC package substrates and direct imaging lithography equipment declined as a result of the curtailment of capital investment due to the prolonged deterioration of the semiconductor market.

Optical Equipment
Sales of optical equipment related to LCD panel declined mainly due to a slowdown in capital investments for LCD panels as stay-at-home demand had run its course, resulting in revenues to fall.

In addition to the decrease in sales, earnings declined from greater strategic investments in R&D and other activities to drive future growth, primarily for optical equipment, and shrinking profit margins from lower sales of such high-value-added offerings as optical equipment, optical equipment lamps and other products.

Industrial Processes business sales thus dropped 8.2% from the previous corresponding term, to \82,131 million. Operating profit fell 40.4%, to \10,876 million.
Visual Imaging
Projector Lamps
Although the demand for xenon lamps for cinema projectors was solid as an improvement in cinema operations following the recovery from the circumstances during the COVID-19 pandemic, sales of lamps for projectors in general imaging field declined due to the shift toward solid-state light sources. Accordingly, sales of projector lamps declined.

Cinema Projectors
Sales of digital cinema projectors increased as a result of the progress in resolving the previous fiscal year’s material shortages as well as our capturing demand for projector replacements in cinemas. The currency effects from the depreciation of the yen also contributed to higher sales.

General Imaging Projectors
Sales increased due to solid demand as the need for advanced video production continued to grow, particularly for events and other activities, and the acceptance inspection for a large deal in the second quarter of the current fiscal year. The currency effects from the depreciation of the yen also contributed to higher sales.

In addition to the increase in sales, earnings increased from improved profit margins due to an improvement in purchasing costs driven by the normalization of material prices for imaging equipment from an easing in the material cost hikes experienced in the previous fiscal year, as well as an increase in the sales proportion of high-end models for the general imaging.

Visual Imaging sales therefore rose 16.9%, to \80,557 million. Operating profit increased 69.5%, to \5,887 million.
Life Sciences
Sales were down primarily because of lower revenues from light source for environmental hygiene solutions. Earnings were up, however, from the decrease in inventory write-downs recorded in the previous term and constrained investments stemming from a strategic review of the environmental hygiene business.

Life Sciences sales accordingly declined 7.2%, to \5,215 million. An operating loss of \2,329 million was lower than the \5,135 million posted a year earlier.
Photonics Solutions
Sales increased on higher revenues for laser modules and others and the effect of increased sales from business acquisitions. Earnings were off, however, amid the increased selling, general and administrative expenses due to business acquisitions and the higher development costs.

Photonics Solutions sales advanced 10.7%, to \10,250 million. There was an operating loss of \1,513 million, compared with an operating loss of \293 million in the previous fiscal year.
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