Financial summary for Q3 of Reporting Period 61 (FY2023)
Market environment
●While both control of COVID-19 infections and recovery of economic activities are being sought in Japan, its economy is picking up slowly, and the demand for engineers in the automotive and semiconductor industries remain strong.
●The 8th wave of COVID-19 infections is spreading, and downside risks to the global economy should be considered.
State of engineer dispatching business
●The number of operative personnel surpassed that of the same period of the preceding year.
(●Number of engineers increased; utilization rate remained high due to the recovery trend in the demand for engineers.
●Placement of newly graduated engineers who joined us in 2022 progressed ahead of the initial schedule.)
●The unit price of engineers dropped slightly from the same period of the preceding year.
(The unit price was on an upward trend during the third quarter, but for the first half of the year, we prioritized placement negotiations for unplaced engineers.)
●Total work person-hours remained at the same level as the same period of the preceding year.
Expenses
●Progress in the placement of unplaced personnel led to a decrease in labor costs in SG&A expenses and an increase in the cost of sales.
(Labor costs connected to engineers are recorded as SG&A expenses until they are assigned to our client companies, after which the costs are recorded under cost of sales.)
●SG&A expenses increased slightly.
(Despite a decrease in labor costs, expenses for recruiting, travel, transportation, and others increased with a recovery in our recruiting and sales activities.)