During the fiscal year under review (from January 1, 2016 to December 31, 2016), the global economic environment surrounding the Company and its consolidated subsidiaries (hereinafter collectively referred to as the “AGC Group” or simply as the ”Group”) remained on a gradual recovery track on the whole.
In Japan, the economy showed a gradual upward trend thanks to factors such as economic measures taken by the government although some sections were lagging behind the recovery trend. The European economy made a gradual recovery and the United States continued its economic recovery along with increased consumer spending and other factors. The economy was picking up in China and other emerging countries.
Under such a business environment, the AGC Group posted net sales of 1,282.6 billion yen for the period under review, down 43.7 billion yen or a 3.3% decrease from the previous year, due to such reasons as the strong yen. Operating profit increased by 25.1 billion yen or up 35.3 % year-on year to 96.3 billion yen, owing to positive factors including increased shipments of automotive glass and chemical products, the price hike of architectural glass and the cost decrease mainly from the decline of raw materials and fuel prices.
Profit before tax was 67.6 billion yen, down 17.0 billion yen or a 20.1% decrease on a year-onyear basis mainly due to the impact of the income from revision of the defined benefit corporate pension plan posted during the six months ended June 30, 2015. Profit for the year attributable to owners of the parent was 47.4 billion yen, up 4.5 billion yen or a 10.6% increase on a year-on-year basis primarily because of a decrease income tax expenses.