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KYOTO, Japan

OMRON Corporation (TOKYO:6645) (Headquarters: Shimogyo-Ku, Kyoto. President and CEO: Yoshihito Yamada) today announced its consolidated operating results for the first half of fiscal 2017, ended September 30, 2017.

Net sales for the period increased 10.5%, to JPY410.5 billion. Net income attributable to shareholders jumped 91.2%, to JPY30.3 billion. The primary growth driver was factory automation. Sales of that business climbed 22.5% from a year earlier, to JPY193.5 billion and operating income increased by JPY15.0 billion to JPY38.0 billion, which were also record highs. A major factor in this growth was brisk capital investment demand among smartphone and semiconductor manufacturers in Japan, Greater China, and elsewhere in Asia.

Gross profit was up 17.5%, to JPY170.2 billion, while operating income advanced 67.4%, to JPY43.4 billion. Omron made further progress with earnings structure reforms across production, sales, and development, leading to a 2.5 percentage points rise in gross profit margin to 41.5%.

Management has upwardly revised its forecast for the full year in view of a strong outlook for the second half. Omron now expects net sales to rise 7.0%, to JPY850.0 billion, and gross profit to gain 13.4%, to JPY353.5 billion. Operating income is predicted to increase 25.8%, to JPY85.0 billion, with net income attributable to shareholders advancing 28.3%, to JPY59.0 billion.

Growth is expected to stem largely from another favorable performance in the Industrial Automation Equipment Business. Other significant contributions are anticipated to come from the Electronic and Mechanical Components Business, reflecting higher demand in cities in China for air conditioners and other appliances, and from gains in the Healthcare Business, where the emergence of online channels around the globe is fueling new consumer demand.

Management has lifted projected total dividends for the year from JPY68.00 per share, to what would be a record JPY76.00.

Yoshihito Yamada, President and CEO, commented that, “We are confident about the strong start of our new medium-term management plan VG2.0. These results show that the core Industrial Automation Business is on a solid track for growth, an illustration that the strategies we have outlined in VG2.0 are correct. We will continue to all work together to attain our VG2.0 goals in 2020, and to ensure further growth in the future.”

About OMRON Corporation

OMRON Corporation is a global leader in the field of automation based on its core technology of “Sensing & Control + Think.” OMRON’s business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronic components, social infrastructure systems, healthcare, and environmental solutions. Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries and regions. In the field of industrial automation, OMRON supports manufacturing innovation by providing advanced automation technologies and products, as well as through extensive customer support, in order to help create a better society. For more information, visit OMRON’s website: http://www.omron.com/

View source version on businesswire.com: http://www.businesswire.com/news/home/20171030006426/en/