NSG Group has released its Fiscal Year (FY) 2018 Annual Consolidated Financial Results from April 1, 2017 to March 31, 2018. The company saw an increase in both overall revenue and operating profit from FY 2017 to FY 2018.
The company’s revenue for FY 2018 was $5.4 billion (JPY 603.8 billion), up from $5.2 billion (JPY 580.8 billion) in FY2017. NSG Group reported an operating profit of $321.2 million (JPY 35.7 billion) for FY2018, up 19 percent from $268.9 million (JPY 29.8 billion) in FY17.
NSG Group’s total assets remained stable compared to last fiscal year at $7.1 billion.
The company also released its forecasts for FY 2019, from April 1, 2018 to March 31, 2019. Company leadership projects an increase in revenue in the next fiscal year, forecasting a half year revenue of $2.8 billion (JPY 310 billion) and a full year revenue of $5.7 billion (JPY 630 billion). NSG Group expects its half year operating profit to be $162.1 million (JPY 18 billion) and its full year operating profit to be $369.3 million (JPY 41 billion). The forecasted full year operating profit is projected to be approximately $48 million more than in FY 2018, showing the expectation that an upward trend will continue.
NSG group’s automotive sector for FY2018 makes up 52 percent of group sales which include more than $2.8 billion in total revenue and more than $12 million in operating profit. Profits for the automotive business increased compared to last year, with a high performance from Europe.
North America represents 26 percent of automotive sales. Due to currency rates, profits decreased compared to last year.
According to the FY2017 Annual Report, the company’s automotive business is actively trying to diversify its customer base. For years there has been a significant level of consolidation. Automotive consolidation leads to an increase in buying power for consumers.
According to the annual report, “The headline rate of U.S. federal corporate tax has fallen from 35 percent to 21 percent with a corresponding decrease in the accounting value of the Group’s deferred tax assets. The increased deferred tax charge is a one-time accounting entry only and will not result in an increase in cash taxes payable by the Group. The Group welcomes the reduction in the U.S. headline federal corporate tax rate, which will result in a reduced tax charge on U.S. profits in the future.”
Emmariah Holcomb, glassBYTEs editor, contributed to this story.