According to Nishiji Saisho, president of Japan's precision machine tool maker Tsukiji, the recent "orders from China are rapidly declining, and they will not be restored until November at the earliest." China’s demand for smart phone parts processing machines has come to an end. In addition, the number of orders from the automotive industry also performed poorly.
Since receiving a large-scale smartphone-related order from China in December last year, the number of orders received by Tianjin has increased dramatically, reaching 6.4 billion yen in March this year, setting a new record for single-month orders. However, since July, orders related to smart phones have begun to drop sharply, with only 1.9 billion yen in August. Orders other than smartphones have also continued to slump, and Nishishima said that "from September to October, it will be approximately 2.5 billion to 3 billion yen."
The amount of orders will be reflected in earnings after about 2 months. Because the number of orders before June soared, the combined operating profit of Tianjin from April to September 2012 increased by 3.4 times year-on-year to 4.8 billion yen, which was 2 to 30% higher than the initial forecast. However, West Island acknowledges that the second half fiscal year is very likely to fall.
Jin Shang has approximately 60% market share in China in the field of spindle-moving automatic lathes. Nishishima said that China's auto and electronic parts and other "all industries continue to have low orders." For the order recovery period, West Island predicts that "there will be a rebound in November-December that is expected to receive new orders related to smartphones."
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