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Japan – Engineering staffing provider Meitec reports net sales down 5% in first half

02 November 2020

Engineering staffing provider Meitec Corp. (9744:TYO) reported Thursday that net sales fell 5.0% in the first half of fiscal year to 30 September. Net sales were negatively impacted by the Covid-19 pandemic, according to the Tokyo-based company, which ranks as the 10th-largest staffing firm in Japan.

(JPY millions) Six months to Sept. 30, 2020 Six months to Sept. 30, 2019 % change Six months to Sept. 30, 2020 (USD millions)
Net sales                    47,091                    49,577 -5.0%                                     446
Gross profit                    11,783                    13,116 -10.2%                                     112
Gross margin 25.0% 26.5%    
Operating profit                      4,878                      6,003 -18.7%                                        46
Profit                      3,138                      3,970 -21.0%                                        30

The decline in net sales occurred as Covid-19 and measures to combat it resulted in a longer training time for new engineers. New orders also slowed and overtime hours were reduced.

Guidance

Meitec forecast net sales will be down 3.5% for the full year.

Share price and market cap

Shares in Meitec closed at JPY 5,170 (USD 49.50) on Friday, 20.22% below their 52-week high. Meitec has a market cap of JPY 149.93 billion (USD 1.44 billion).