First, I would like to express my sincere appreciation for your support of GS Yuasa.
I will present the Company's operating performance for the first six months of the fiscal year ending March 31, 2020.
Looking at the global economy during the first six months of the fiscal year ending March 31, 2020, favorable employment and income environments in the United States supported firm consumer spending, but the Chinese economy slowed, in part due to the impact of US-China trade issues. Consumer spending was also firm in Europe, buoyed by an improving employment environment. The outlook, however, remains clouded by uncertainties related to Brexit. The Japanese economy meanwhile remained on a moderate recovery trend, supported by improved employment and income environments. The domestic outlook, however, also lacks clarity amid concerns about a slowdown in the global economy.
In this economic environment, the GS Yuasa Group's consolidated net sales for the first six months of the fiscal year totaled ¥190,414 million, about ¥5,000 million or 2.6% less than in the same period of the previous fiscal year. The main reasons for the decline in Group sales were the automotive battery business’s lowering of product prices to reflect the fall in the price of lead and the negative impact from a strong yen. Despite lower overall sales, profit growth was achieved as strong sales of power supply systems and the lower price of lead helped boost operating income to ¥7,549 million (¥8,678 million before goodwill amortization), a year-on-year increase of ¥592 million or 8.5%. Ordinary income totaled ¥8,424 million, up ¥932 million or 12.4%. These gains filtered through to profit attributable to owners of parent, which rose to ¥4,774 million (¥5,902 million before goodwill amortization), a year-on-year increase of ¥1,319 million, or 38.2%.
I sincerely hope we will be able to count on the continued support and encouragement of our shareholders as we rise to meet the challenges ahead.