After all the depressing news from numerous aftermarket companies reporting difficulties, cutbacks, and hard times, HKS releases a postive note. Even through the difficulties of the 07-08 year, HKS has reported a net profit of $2.23 million versus a loss of $1.66 million the previous fiscal year.  It seems that a large part of their strategy so far was cutting back on spending, since sales were understandably lower.

So, for all of you buying HKS parts and supporting the real companies (not the knock-offs), keep doing what you're doing.

According to HKS, "As a result, The Operating Profit for the Fiscal Year was 392 Million yen (US$3.92 million) versus previous FY loss of 47 Million Yen (US$-.47 million), the Current Profit was 390 Million Yen (US$3.9 million) versus previous FY loss of 9 Million Yen (US$-.09 million), and the Net Profit was 223 Million Yen (US$2.23 million) versus previous FY loss of 166 Million Yen (US$-1.66 million). 
 
 *100JPY = $1 USD
 
HKS USA, Inc. Financial Highlights (FY 2008)
 
HKS USA, Inc. FY 2008
As HKS *** Ltd.’s public disclosure statements show, the HKS Group is financially sound, with its substantial asset base of 11 Billion Yen (US$112.0 million) and liabilities of 3 Billion Yen (US$30 million). In fact, liabilities have been reduced by 9% versus prior fiscal year as a result of efficient operating and accounting controls. HKS’s solid financial standing will allow the company to continue to implement its R&D and dealer support plans during the global downturn.
 
For the fiscal year, the North American operation (HKS USA, Inc.) made a significant contribution to the HKS Group despite the developing U.S. financial crisis and significant decline in auto sales and aftermarket industry sales. While sales revenue decreased by 18% versus prior fiscal year, profit increased 11% versus prior fiscal year as a result of the implementation of a “lean operations plan” and cost containment.
 
Plans and Outlook for Next Fiscal Year
The HKS Group forecasts that the global economy will continue to lose momentum into calendar year 2009, placing significant pressure on the auto and aftermarket industries. In spite of the weak global economic outlook, HKS believes it will continue to perform successfully in the Fiscal Year 2009 (FY36) with the benefit of the HKS Group’s strategic direction already in place. The “lean-operations plan” will continue to go forward in HKS’s relentless efforts to contain and reduce costs.
 
To achieve better capital efficiency – return on capital employed - HKS Group will not participate in major industry shows, including SEMA, PRI and Tokyo Auto Salon. The capital will be employed in operations and R&D to ensure all new products are delivered to the market to better support our loyal customers and strengthen the HKS Dealer network."