Message from the President
The Japanese economy during the 2008 fiscal year was substantially affected by the worldwide spread of monetary instability and the economic recession in the U.S.A. and Europe which were derived from the subprime mortgage crisis. Especially, the economy for the second semi-annual term in which the financial crisis was growing worse suffered from rapid recession, bringing a large change to the foreign exchange and stock markets. The rapid decrease in export also corrupted business profitability. As a result, a remarkable trend toward production adjustment and reduction of investment in plant and machinery appeared.
In these circumstances, our maritime equipment business showed a steady growth, but sales of equipment for domestic communications carriers did not increase as expected because the mobile phone market was stagnant.
Our basic policy for our business operation is to continue stable dividends from a long-term viewpoint based on our recognition of the profit feedback to our shareholders as one of the most important operation policies and under our consideration for strengthening our corporate achievements and constitution of our enterprise. Based on this policy, it has been determined that the dividend per share as of the end of the term under review will be 3 yen in consideration of the business results in this term.
Our prospects for the next term are forced to be involved in higher uncertainty with which the Japanese economy will continue to face the serious environment under the adverse influence of the recession in the U.S. and Europe on the world economy which was derived from the subprime mortgage loan problem in the U.S. A. and also under the effect of the rapidly worsening employment phase on the personal consumption, as well as under the currency trend toward higher yen and weaker U.S. dollars.
In this background, our JRC group will make drastic cost-down efforts and reduce the fixed costs through reforms in all business aspects, and speed up the selection of business items and the concentration of operational resources on such selected items, thereby strengthening our business foundations.
We look forward to the continued support and understanding of all of our shareholders and investors.
June 2009
Yorihisa Suwa
President