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The HR industry in the 2nd quarter of FY March 2012 was influenced by the supply chain being thrown into confusion following the Tokai earthquake but, quickly recovered. Thanks to a rebound of production and recovery related hiring, the number of job openings increased but, on the other hand, the overall unemployment rate remained at previous high levels and, times have become challenging. Also, along with the sudden appreciation of the Yen and changes in industrial production, the types of services offered by the HR industry and clients themselves have changed. To appropriately address these challenges, the range of services offered within the Temp Group has been enhanced and, progress made in fine-tuning operational structures so that our core contingent hire business line and, business platform are expanded.
Related to this, in January 2011 we acquired Kobelco Personnel Co., Ltd. and Nikkei Staff Co., Ltd. which then became subsidiaries.("Nikkei Staff Co., Ltd." name changed to Tempstaff Media Co., Ltd. upon consolidation.) Accordingly, synergies have emerged between those firms' specialized know-how and the Temp Group's job seekers, collective client know-how and, our Japan-wide sales network. The Temp Group as a whole aims to further deepen its specializations and, enhance its regional strategy. The R&D outsourcing business saw the complete acquisition by way of share transfer in Nov 2009 of Japan Tecseed Co., Ltd. which then became a Temp Holdings subsidiary. In future, links between Group companies will become even stronger and, we are proceeding to enhance our technical HR service offerings in the mid to long term.
Combined with temporary demand related to the Tokai earthquake, our outsourcing business is focusing on long term domestic and foreign opportunities. We are accumulating implementation and operational know-how through strengthened linkages and cooperation within the Group and moves are afoot to expand the outsourcing business. In particular, three subsidiaries partnered to establish the 330 seat Miyazaki Support Centre in Miyazaki City in October 2011. Miyazaki Prefecture has an abundance of quality labour and, an appropriate scale of infrastructure as well as high-speed communication infrastructure etc. It is this favorable environment which we wish to utilize to progress our IT related business and strengthen and grow our service range.
"Active development of the global market" is a mid to long term challenge and, for many years we have worked to bolter our business platform in the Asian region. Our Tsim Sha Tsui office, our 13th overseas site and 2nd office in Hong Kong opened in May 2011. There has been an increase in client queries and orders to offices in various overseas countries in light of the appreciation of the Japanese Yen last year and economic factors. In future, linkages between Kelly Services and our Asian offices will deepen and there will be actual active development of the global market.
The results of such efforts in the 2nd quarter of FY Mar 2012 were: sales JPY 13,200 million (up 1.3% YoY), operating profit JPY 3,400 million (up 26.3% YoY), ordinary profit JPY 3,600 million (up 17.3% YoY), net profit for 4 quarters 1,200 million (up 48.7% YoY).
The business environment continues to change to this day. To build an effective and appropriate HR portfolio that mitigates employment risk, use of external HR has become increasingly important. Simultaneously, times are changing and there are calls to provide stable employment opportunities for workers. To manage change in these such times, the Temp Group is proud to have the mission of creating jobs by linking companies that use labour with job seekers.
Also, we believe the HR industry is a driver in creating jobs to support post-Tokai earthquake recovery. At Temp Holdings, as part of Tokai earthquake recovery efforts, we have implemented a "Work at Temp Group" recovery project and, we have been obtaining for-hire information in the disaster areas and providing job information to shelters and temporary accommodation sites to support the job search efforts of individuals who have been temporarily displaced. We have also set-up contact points for job seekers and provided recovery aid in the form of assistance in securing accommodation and transportation which is linked to a wide range of support related to employment.
While addressing the changes in the market and society, in future the Temp Group will also continue to link individuals with jobs by putting into practice the company vision of: "Creating Jobs, Growing Individuals and, Contributing to Society ". As a leading company in the use of external labour, we will contribute to the creation of employment for the benefit of people, firms and Japan's tomorrow.
