Omron (6645) Buy into What Could Be Perceived as Poor 1Q Results.

Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>1Q results were in line with the company's forecast. Sales rose 3% to Y209.8bn, gross profit rose 4% to Y87.7bn but operating profit fell 14% to Y19.6bn. This was due to higher R&amp;D costs as well as increased labour costs (particularly engineers). Marketing costs also rose. This has been a deliberate strategy implemented from the second half of last year. </p><p>In terms of the business, the industrial automation business (IAB) saw sales rise 7% to Y102.8bn ((49% of sales) but operating profit fell 12%…</p>

1Q results were in line with the company's forecast. Sales rose 3% to Y209.8bn, gross profit rose 4% to Y87.7bn but operating profit fell 14% to Y19.6bn. This was due to higher R&amp;D costs as well as increased labour costs (particularly engineers). Marketing costs also rose. This has been a deliberate strategy implemented from the second half of last year. In terms of the business, the industrial automation business (IAB) saw sales rise 7% to Y102.8bn ((49% of sales) but operating profit fell 12%…

Omron (6645) Results Inline, Management Increasingly Focused on Shareholder Returns. BUY Shares Here

Omron Corp

Omron (6645) Results Inline, Management Increasingly Focused on Shareholder Returns. BUY Shares Here