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Regarding the business environment surrounding our group, increased costs for logistics, raw materials, and utilities are anticipated due to sustained high energy prices. Furthermore, U.S. tariff policies could potentially impact our business performance, as policy trends remain fluid.
Regarding trends in the semiconductor industry, our products are currently in an inventory adjustment phase, and we anticipate a full-scale market recovery starting from fiscal year 2026. Moreover, as our group has a high proportion of overseas business, our financial results are subject to fluctuations in amounts when converting foreign currency-denominated figures into Japanese Yen due to exchange rate movements. For the fiscal year ending March 2026, assuming a trend towards a stronger yen, we anticipate a negative impact on both sales and profit.
Based on these assumptions, our group's outlook for the next fiscal year is as follows:
In the Pressure Gauge business, while sales to the process industry, particularly driven by demand for plant-related equipment upgrades, are expected to remain robust, we anticipate a decrease in sales to the industrial machinery, pneumatic equipment, and semiconductor industries. Additionally, for our U.S. subsidiary, we foresee a negative impact on sales due to the stronger yen, and overall, sales in the Pressure Gauge business are expected to decrease.
In the Pressure Sensor business, while sales to the industrial machinery and process industries are expected to remain at the same level as the fiscal year ending March 2025, and we anticipate an increase in sales of pressure sensors for automotive and construction machinery applications, the significant impact of decreased sales of products for the semiconductor industry means that overall sales in the Pressure Sensor business are expected to decrease.
In the Measurement and Control Equipment business, we anticipate an increase in sales of air leak testers for the electronic component related industry and inspection equipment for factory automation, which performed poorly in the current consolidated fiscal year. We also foresee an increase in sales of tongue pressure gauges.
In the Die-Casting business, we anticipate a slight increase in sales of die-cast products for the automotive industry, which performed poorly in the fiscal year ending March 2025, and an increase in sales of die-cast products for other applications.
In other businesses, sales of automotive electrical components are expected to remain at the same level as the fiscal year ending March 2025.
Under these circumstances, as the final year of our Second Mid-Term Management Plan, our group will continue to strengthen profitability and promote business structural reforms to enhance corporate value over the medium to long term amidst ever-changing global economic and business environments, striving towards achieving the plan.