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Meitec Corporation announces results

Net sales were &pound225m or Y35,745,000,000 providing operating income of &pound18.3m or Y2,907,000,000 and net income of &pound10.7m or Y1,706,000,000 slightly ahead of last year.

The engineering specialists issued the following statement.

Consolidated Operating Results

During the six months from April 1, 2013 to September 30, 2013, although a moderate recovery of the Japanese economy was seen, uncertainty over the world economy remained high due to the prolonged European financial issues and the slowdown in economic growth in emerging markets.

Under such circumstances, many leading manufacturers, which are the major customers of the Company, continued steady investments in technological development looking to the next generation despite the business conditions.

Thanks to a strong order environment, our utilization ratio during the period under review steadily increased. This mainly reflects the assignment to customers of 546 newly graduated engineers who joined us in April of this year

(MT: 379, MF: 167), which nearly matched our plan.

As a result, consolidated net sales for the period under review increased &yen1,624 million, or 4.8%, from a year earlier to &yen35,754 million. Consolidated cost of sales rose &yen1,488 million, or 5.9%, from a year earlier to &yen26,607 million.

Consolidated selling, general and administrative expenses rose &yen120 million, or 2.0%, from a year earlier to &yen6,239 million, due to continued aggressive hiring. Consolidated operating income increased &yen15 million, or 0.5%, from a year earlier to &yen2,907 million. Consolidated ordinary income decreased &yen13 million, or 0.5%, to &yen2,931 million, mainly due to a decline in non-operating income, and consolidated net income advanced &yen13 million, or 0.8%, to

&yen1,706 million.

(1)-2. Operating Results of Business Domains (1)-2.i Temporary Staffing Business Net sales in the Temporary Staffing Business segment for the period under review increased &yen1,539 million, or 4.7%, from a year earlier to &yen34,237 million. The major reason for this increase was an increase in the number of engineers assigned to customers via reinforcing sales activities in the Temporary Staffing Business, which accounts for more than 90% of consolidated net sales, particularly in temporary engineer staffing, the core business of this segment. Operating income increased &yen11 million, or 0.4%, from a year earlier to &yen2,789 million.

The Company’s non-consolidated average utilization ratio (overall) was 92.8%, a slight decline from 94.5% a year earlier. A major reason for this decline was the hiring of 379 newly graduated engineers in April of this year, an increase of 159 over the previous year. Also, working hours were steady at 8.89 hours/day (8.86 hours/day for the same period of the previous fiscal year).

(1)-2.ii 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 fell &yen46 million, or 3.8%, from a year earlier to &yen1,200 million, and an operating income declined &yen16 million, or 50.0%, to &yen16 million.

Sales and profit declined in Meitec CAE due to a decrease in orders received, and the Apollo Giken Group had continued to post operating loss.

(1)-2.iii 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 &yen13 million, or 58.2%, from a year earlier to &yen37 million, and an operating loss of &yen50 million was posted compared with a loss of &yen29 million a year earlier.

(1)-2.iv 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 &yen79 million, or 21.4%, from a year earlier to &yen450 million, and operating income increased &yen40 million, or 37.3%, to &yen150 million.

Meitec Next achieved sales and profit growth due to an increasing number of job placements

 

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