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Meitec Boosts Profits

Meitec Boosts Profits

Meitec Corporation of Japan has released its financial report for the nine months to 31st December 2012.

Net sales were Y52.9 million (&pound356M) and the company had a net fee income of Y3.1 (&pound21.3M) up almost 60%.

Consolidated Operating Results

During the nine months from April 1, 2012, to December 31, 2012, the U.S. economy showed a gradual recovery trend and tensions concerning the fiscal issues in Europe relaxed somewhat. However, the business environment remained unpredictable due to the continued uncertainty of the world economy. Although many leading Japanese manufacturing companies, which are major customers of the Company, continued to invest in technological development, the Company recognizes that there is still a strong trend toward reducing costs, including large-scale investment for technological development.

Despite such conditions, in the Group’s core business, temporary engineer staffing business, we received steady orders and achieved a higher utilization ratio. In addition, working hours progressed steadily, without experiencing a big drop. Primarily for these reasons, consolidated net sales for the period under review increased &yen3,313 million, or 6.8%, from a year earlier to &yen52,339 million. Consolidated cost of sales rose &yen1,612 million, or 4.4%, from a year earlier to &yen37,985 million, mainly due to an increase in labor costs. Consolidated selling, general and administrative expenses rose &yen771 million, or 9.2%, from a year earlier to &yen9,171 million, primarily due to an increase in strategic investments. As a result, consolidated operating income increased &yen929 million, or 21.9%, from a year earlier to &yen5,182 million. Consolidated ordinary income rose &yen941 million, or 21.9%, to &yen5,245 million, and consolidated net income advanced &yen1,169 million, or 59.3%, to &yen3,142 million.

Temporary Staffing Business

The Temporary Staffing Business accounts for more than 90% of consolidated net sales. Particularly in temporary engineer staffing, the core business of this segment, the Company’s non-consolidated average utilization ratio (overall) was 95.1% (92.2% for the same period of the previous fiscal year). Also, working hours were steady at 8.86 hours/day (8.81 hours/day for the same period of the previous year). Mainly for this reason, net sales in the Temporary Staffing Business for the period under review increased &yen3,339 million, or 7.1%, from a year earlier to &yen50,141 million, and operating income raised by &yen890 million, or 21.6%, to &yen5,014 million.

Engineering Solutions Business

In the Engineering Solutions Business, the Company provides engineering services related to analytical technologies, prototype production, casting/metal mold production and technology support for printed-circuit boards. Net sales in the Engineering Solutions Business for the period under review decreased &yen231 million, or 10.8%, from a year earlier to &yen1,914 million. Operating income increased &yen4 million, or 6.0%, from a year earlier to &yen73 million.

Global Business

The Global Business engages in job placement and vocational training for students to supply human resources for Japanese manufacturers that operate in the coastal areas of China.

Net sales in the Global Business for the period under review increased &yen37 million, or 187.9%, from a year earlier to &yen56 million, and an operating loss of &yen36 million was posted compared with a loss of &yen49 million a year earlier.

Recruiting & Placement Business

The Recruiting & Placement Business involves the job placement and an information portal site business intended for engineers.

Net sales in the Recruiting & Placement Business advanced &yen115 million, or 27.8%, from a year earlier to &yen532 million, and operating income increased &yen23 million, or 21.9%, to &yen127 million.

Meitec Next Corporation achieved sales and profit growth due to a higher number of job openings.

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