2020_2q_omron_e

13/37 - Full-year Forecasts: Lowering Guidance

We show here our full-year forecasts. We now project sales of ￥670bn, gross profit of ￥298bn, for a GP margin of 44.5%, and operating income of ￥45bn. We expect net profit to be ￥66bn. The net profit forecast includes the profits resulting from the transfer of the AEC business. As discussed earlier, we have revised down our forecasts, on the assumption that tough operating conditions will continue in H2. We have also factored in a negative forex impact. Our forex assumptions for H2 are: USD ￥105, EUR ￥117, and RMB ￥14.7. We have made adjustments from our initial plan to reflect the impact of yen appreciation. Despite these challenging conditions, we expect the GP margin to improve 0.1% pts Y/Y. If we exclude the forex impact, we project a Y/Y improvement of 0.6% pts. Next, turning to the forecasts for segment sales.