Archion, the new company formed to takeover the running of the joint venture between Fuso and Hino has announced that its wholly owned subsidiary Hino has shown a mixed performance for the Japanese financial year ending 31 March, with the brand’s global net sales falling 7.8 per cent over the period.
However the company’s consolidated results saw sales amount to $AUD 13.8 billion (¥1.57 trillion) for the newly delisted which also saw its profitability improve sharply, with its operating profit up 42.7 per cent to $AUD 723 million while ordinary profit also rose to just over $AUD 621 million (¥70.6 billion) a rise of 79.7 per cent.
The turnaround was off a large loss in the prior year and was partly attributable to booking a substantial deferred tax benefit and significant extraordinary losses in its latest fiscal year,
The company said the results reflect both an improving earnings outlook and lingering financial fallout from Hno’s now infamous emissions and fuel consumption certification issues.
Hino said that it registered $AuD 356 million ( ¥40.4 billion )in deferred tax assets and recorded $AUD 408 million ( ¥46.4 billion) in income tax-deferred benefits, while also taking a $AUD325 million (¥36.9 billion ) extraordinary loss, which it admitted was tied to regulatory actions in Canada and potential indemnities under its integration with Fuso.
The new owners said that the results significantly boosted Hino’s equity ratio from 12.1 per cent to 31.9 per cent, underscoring what it describes as a strengthened balance sheet.
It said that results, combined with higher operating cash flow and the fact that it has made no dividend payout, demonstrate a focus on rebuilding financial resilience that should support Archion’s broader earnings and capital strategy following the acquisition last month.
The company’s board opted to forgo a year-end dividend for the year to 31 March, citing the heavy impact of certification misconduct on group performance, with Hino prioritising the rebuilding and strengthening its balance sheet over its usual dividend policy, which it said continued its focus on financial recovery and risk containment under under the new joint venture ownership.
Archion Corporation, is now listed on the Tokyo Stock Exchange Prime, and said that the group is now focused on strengthening consolidated performance and enhancing its capital base following recent restructuring at Hino.
