Investor Relations | IR Events | Performance Briefing

[ 2nd Quarter of fiscal 2013 Performance Briefing ]Consolidated First Half Results of FY March, 2013 Consolidated Full Year Projections of FY March, 2013

Mr. Takehiro Kamigama President & CEO

Mr. Takehiro Kamigama
President & CEO

Consolidated First Half Results of FY March, 2013

These are the Consolidated First Half Results of FY March 2013. Net sales, 415.6 billion yen; operating income, 20.4 billion yen; income from continuing operations before income taxes, 18.3 billion yen; net income, 9.7 billion yen; earning per share, 77.25 yen; impact of Forex against the dollar, 79.46 yen; impact of Forex against the euro, 100.72 yen; negative impact on sales, 6.2 billion yen; and negative impact on operating income, 0.9 billion yen. Consolidated sales did not change that much, decreasing 0.1%, but operating income increased 40.9%. This was due to the insurance payout we had received due to the flooding in Thailand being 5.4 billion yen in operating income. Because of the HDD market deceleration, recording device sales were below expectations; and for passive components in the communications market, sales increased but were also below expectations. Towards restructuring plans for profitability improvement, this is basically in line with plans, but for quarterly sales and operating income results, for 3Q onwards we must improve on figures.

Full Year Projections of FY March 2013

For the Consolidated Full Year Projections of FY March 2013, unfortunately because of difficult market conditions, hard disk and components for the communications market sales were less than expected so we must regrettably make a downward revision. Net sales projections must be revised from 900 written down to 850 billion yen; operating income from 57 down to 41 billion yen; income before income taxes from 53 down to 37 billion yen; and net income from 40 being written down to 20 billion yen; the Forex assumption being 77 yen for USD and 100 yen for the euro. We would like to slightly reduce spending in capital expenditures from 85 to 80 billion yen, depreciation and amortization from 82 to 78 billion yen, and research and development from 53 to 51 billion yen.

Dividends Forecast of FY March 2013

For the Dividends Forecast of FY March 2013, because we had to revise the dividend payments as well, the forecast per a common share for the interim dividend is 40 yen; for the year-end dividend although initially announced as 50 yen, because of downward revisions we would like to reduce that figure to 40 yen; and the annual dividend will be 80 yen.

Initiatives for Second Half of FY March 2013

Because of this environment, in the latter half of FY March 2013 we would like to take more initiatives. Restructuring efforts have been proceeding as expected and have had concrete results. But because of severe global market conditions, we expect these trends to continue for a while and cannot expect a short-term recovery. We would like to improve profitability in the passive components area, suspend capital expenditures for a while, look at the electronics components market and client situation, have further ROI, continue with capital expenditures which we believe will be needed, and to reduce overhead as well as material purchase costs. Rather than having these types of defensive measures, we would like to take more aggressive measures as well. We would like to improve profitability for passive components, specifically for high-frequency components for cell phones and tablets, which have been delayed for a quarter due to market conditions, but after the third quarter those sales will be increasing with client-side sales increasing the quarter after that. We would also like to focus on inductors utilizing our thin-layer technologies, expanding our product line-up in the future. In conclusion, although the business environment has been very severe, we would like to take defensive as well as aggressive measures in order to expand our market, provide new products, and improve profitability.

Recommendations

  •  
  •  
  •