Bullish Omron revises forecast

Omron is upbeat about its financial performance for the current financial year, claiming that a recovery in plant and equipment investment, mainly in the domestic semiconductor and IT related business sectors, has improved the company’s position.

Demand for the group’s mainstay control system related products, in industrial automation and electronic components, has seen a remarkable increase. The changes in fortunes of the Far East economies and reorganisation of Omron’s cost structure have resulted in increased production, which have contributed to a sizeable improvement in Omron’s overall financial results.

While these results do not show a large change in sales, and even though Omron has seen a drop in assets due to new accounting principles adopted in April this year, an increase in profit is expected and a forecast revision was deemed necessary.

Sales for the year ending March 31, 2001 had been forecasted at Y605,000 million. This forecast has been revised 1.8% lower at Y594,000 million. Net profit forecast for the same period has however been revised up 17.9% at Y23,000 million.