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Japan – Meitec revenue up +7%

07 February 2013

Japanese engineering staffing firm Meitec Corp. (9744:TYO) today reported net sales of USD 559.5 million (JPY 52.4 billion) in the nine months to December 2012, a +7% increase from a year ago. Consolidated cost of sales rose 4.4%, from a year earlier mainly due to an increase in labour costs but operating income in the period jumped +22% to USD 55.5 million (JPY 5.2 billion).

Net income was up a sharp +59% to USD 33.1 million (JPY 3.1 billion). The firm said that a gradual recovery seen in the US economy helped boost revenue although uncertainty remained high. Meitec counts major manufacturing customers among its clients and cost reductions in the sector have led to a downward trend in the industry. Yet overall, order numbers remained steady.

The technical and engineering recruiter generates most of its revenue from its temporary staffing business where net sales increased by +7% to USD 534.9 million (JPY50.1 billion). Operating income in this unit increased +22% to USD 53.4 million (JPY 5.0 billion).

In trading today, the company’s share price was up +1.45 to JPY 2,350, a +47.4% rise from a year ago. Based on its stock price, the firm has a market value of USD 858.8 million (JPY 80.43 billion).

Meitec provides staffing services, engineering solution services, global services and career support services. It has 35 offices in Japan but also expanded into China in 2003 where it engages in job placement and vocational training for students to supply human resources for Japanese manufacturers that operate in the coastal areas of China.

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