Sales and Operating Income by Product Group
Sales by product group include internal sales and transfer between segments (Consumer/Information Products and Electronic Components). The explanations below illustrate comparisons with the second quarter.
Audio-Visual and Communication Equipment
Sales of Audio-Visual and Communication Equipment in the third quarter of fiscal 2012 were 202.3 billion yen, down 1.0% compared to the previous quarter. Operating income was 5.3 billion yen, an improvement of 6.2 billion yen from the 0.9 billion yen operating loss of the previous quarter, reflecting the effects of cost reductions.
The forecast for fiscal 2012 as a whole has been upgraded from the previous forecast, to sales of 740.0 billion yen, down 30.3% compared to the previous year, and an operating loss of 8.0 billion yen.
<LCD TVs>
Sales of LCD TVs in the third quarter of fiscal 2012 were 105.1 billion yen, down 2.6%, while on a unit basis, sales were flat at 2.23 million sets, both compared to the previous quarter. Sales exceeded our projection, due mainly to the fact that prices were more stable than we projected.
Although the impact of worsening Japan-China relations led to weak sales in China, sales in the Japanese market increased on both a monetary and unit basis compared to the second quarter.
Going forward, we will continue to work to increase sales by expanding our lineup of TVs 60 inches and larger, focusing on sales increases in emerging countries and in other key markets, and pushing ahead with the development of new products such as 4K models.
For fiscal 2012 as a whole, the forecast for sales on a monetary basis has been revised upward to 380.0 billion yen.
<Mobile Phones>
Factors related to the timing of new product introductions affected sales of mobile phones, with sales on a monetary basis of 64.8 billion yen, down 6.1%, and unit sales of 1.57 million units, down 19.3%, both compared to the previous quarter. However, in Japan, models equipped with IGZO LCDs have earned high ratings from consumers since the debut at the end of November, and are enjoying healthy sales.
We have revised upward the forecast for fiscal 2012 as a whole to sales of 250.0 billion yen.
Health and Environmental Equipment
Sales of Health and Environmental Equipment were 74.8 billion yen, down 2.4%, and operating income was 7.4 billion yen, down 17.8%, both compared to the previous quarter. Seasonal factors were behind these declines. Nevertheless, results to the end of the third quarter were very close to our projections. The forecast for fiscal 2012 as a whole remains unchanged from previously announced figures, with sales of 310.0 billion yen and an operating income of 33.0 billion yen.
Information Equipment
Sales of Information Equipment were 69.7 billion yen, down 6.3% compared to the previous quarter. However, operating income was 6.3 billion yen, up 36.9% compared to the previous quarter, reflecting the effects of cost reduction.
The forecast for fiscal 2012 remains unchanged, with sales of 290.0 billion yen. Based on the progress of the first three quarters, we revised the forecast of operating income upward to 21.0 billion yen.
LCDs
Sales of LCDs were 258.2 billion yen, up 16.3% compared to the previous quarter, an improvement of 36.1 billion yen. The operating loss was 11.7 billion yen, an improvement of 40.2 billion yen from the operating loss of 52.0 billion yen posted in the previous quarter. This is due mainly to increased sales and the effect of an inventory write-down in the previous quarter.
However, orders for small- and medium-size LCDs in the fourth quarter are expected to be lower than projected, and the forecast for fiscal 2012 as a whole has been revised downward to sales of 830.0 billion yen and an operating loss of 144.0 billion yen.
We will continue to work hard to expand the application of IGZO LCDs for high-performance mobile products such as Ultrabook™, where the demand is expected to pick up in fiscal 2013, while at the same time working to increase production of LCDs with high-definition capability for TVs and monitors, for which demand is on the increase.
Solar Cells
Sales of solar cells were 55.9 billion yen, up 9.4% compared to the previous quarter, reflecting expanded sales for the Japanese market for residential applications and for industrial use, such as in mega-solar power generation projects. An operating loss of 1.9 billion yen was posted in the third quarter compared to that of 5.3 billion yen in the previous quarter, reflecting the impact of increased sales and reductions in fixed costs.
Based on the progress of the first three quarters, the forecast for fiscal 2012 as a whole has been revised upward to sales of 245.0 billion yen and an operating loss of 11.0 billion yen.
Going forward, we will continue to work to expand and strengthen our solar solutions business as well as expand our business in Japan.
Other Electronic Devices
Sales of Other Electronic Devices were 81.4 billion yen, up 3.7% compared to the previous quarter, due mainly to robust sales of camera modules for mobile devices. At the same time, increased sales, the effect of cost-cutting measures, and an inventory write-down in the previous quarter enabled us to post positive operating results, with operating income of 3.1 billion yen, improved from the loss of 18.7 billion yen in the previous quarter.
For fiscal 2012 as a whole, the forecast for sales has been revised upward to 275.0 billion yen, with an operating loss of 17.0 billion yen.
