Sales rose by 11.3%, and operating income by 10.0% year on year.
Sales were 7,381 million yen, up 11.3% year on year. Sales in Europe, which is the mainstay of the company, steadily increased to 3,144 million yen, up 3.0% year on year, and sales in North America were 1,279 million yen, up 80.6% year on year due to the company reinforcing its sales network. In addition, motorcycle sales were favorable in Japan, and sales were 2,152 million yen, up 8.7% year on year. Meanwhile, sales in other regions (Asia, Oceania and South America) declined 9.5% year on year to 805 million yen, due to a rebound effect created by substantial growth in the same period last year.
In terms of profit, in addition to labor cost increases accompanying full production, material expenses for launching new products and depreciation expenses augmented. So, the gross profit margin declined, and SG&A expenses increased mainly due to personnel expenses. However, these expenses were offset by boosted sales, and operating income rose 10.0% year on year to 1,674 million yen. Ordinary income grew 13.5% year on year to 1,657 million yen due to a decrease in foreign exchange losses (-54 million yen became -24 million yen).
As for exchange rates, sales conversion rates for the company were 1 US dollar = 109.32 yen (2.51 yen appreciation compared to the previous term), and 1 euro = 133.28 yen (13.64 yen depreciation), while exchange rates used by overseas subsidiaries (as of Dec. 29, 2017) were 1 US dollar = 113.00 yen (3.49 yen appreciation), and 1 euro = 134.94 yen (12.24 yen depreciation).

In the Japanese market, sales have begun to increase for new motorcycles with 126cc engines or greater, and in the helmet market, there is a continuing trend for high-quality helmets and owning multiple helmets, particularly in the senior citizen age group. In the European market, sales of new motorcycles in Germany, France, and the United Kingdom were less than in FY2017, but they were sure and steady, and the helmet market also performed well. In the North American market, sales of new motorcycles were stagnant, and the helmet market remained flat. The Asian market is generally following a trend of expansion, and although not as much as previously, sales of medium-sized and large-sized motorcycles in China are on an upward trend, and the helmet market remained steady.
Amid these trends, production status was tight in the term's first half, but the combined sales volume from Japan and overseas increased 5% year on year. In the European market, although sales volume declined 9% year on year due to bad weather conditions, sales grew due to the depreciation of the yen and higher unit prices. In the North American market, sales volume rose 112% year on year after increasing the number of distributors from 1 to 2 in October of last year, and beginning shipments of new products in March (it was also affected by the condensing of inventory which took place in the same period last year, prior to switching to 2 distributors). Sales volume in the Japanese market also increased 5% due to returning riders, etc. Meanwhile, there was only a slight increase in sales volume for the Asian market, and the Chinese market also remained flat.




Total assets at the end of the first half were 16,026 million yen, up 1,022 million yen from the end of the previous term. Under debits, inventories increased due to preparation for the bike season in spring, and tangible assets grew due to capital investment. Under credit, payables and net assets rose. Equity ratio was 77.9% (81.7% at the end of the previous term).