Results for the Six Months Ended September 30, 2014
Financial Results | (Billions of Yen) |
| |
FY2013 |
FY2014 |
| 1H |
Initial
1H Forecast |
1H Results |
|
Change
(Y on Y) |
Difference
(Y on Y) |
Difference from Initial Forecast |
| Net sales |
1,342.0 |
1,450.0 |
1,327.6 |
-1.1% |
-14.3 |
-122.3 |
| Operating Income (margin) |
33.8 (2.5%) |
35.0 (2.4%) |
29.2 (2.2%) |
-13.6%
|
-4.5
|
-5.7
|
| Net Income (margin) |
-4.3 (-0.3%) |
5.0 (0.3%) |
4.7 (0.4%) |
-
|
+9.0
|
-0.2
|
Consolidated financial results for the first half (April - September) of fiscal 2014 recorded net sales of 1,327.6 billion yen, down 1.1% over the same period last year, and operating income of 29.2 billion yen, down 13.6%, and net income improved by 9.0 billion yen from a loss of 4.3 billion yen to 4.7 billion yen.
Due to a backlash from the last-minute demand following consumption tax hike as well as the effects of decreases in new home construction in Japan, sales of Digital Information Equipment and Energy Solutions were lower than the same period last year, which resulted in decreased net sales. Overall operating income showed a decline due to Electronic Devices being in the red and other causes.
Both sales and profits were lower than the initial forecast, but net income returned to profitability.
Quarterly Financial Results | (Billions of Yen) |
| |
FY2014 |
| 1Q |
2Q |
|
Change
(Q on Q) |
Difference
(Q on Q) |
Change
(Y on Y) |
| Net sales |
619.7 |
707.9 |
+14.2% |
+88.2 |
-3.6% |
| Operating Income
(margin) |
4.6
(0.8%) |
24.5
(3.5%) |
5.3-fold
|
+19.8
|
-20.3%
|
| Net Income
(margin) |
-1.7
(-0.3%) |
6.5
(0.9%) |
-
|
+8.3
|
-52.2%
|
In the second quarter (July - September), net income was in the black, and operating margin improved from 0.8% in the first quarter to 3.5%.
Sales by Product Group | (Billions of Yen) |
*Sales of each product group include internal sales and transfer between segments (Product Business / Device Business)
| |
FY2014 |
| |
1H |
|
| 1Q |
2Q |
Change
(Q on Q) |
Change
(Y on Y) |
| |
Digital Information Equipment |
168.6 |
164.0 |
-2.7% |
332.7 |
-0.6% |
| Health and Environmental Equipment |
82.1 |
80.7 |
-1.7% |
162.8 |
+1.8% |
| Energy Solutions |
69.0 |
73.9 |
+7.1% |
142.9 |
-15.0% |
| Business Solutions |
79.2 |
85.2 |
+7.6% |
164.5 |
+3.9% |
| Product Business |
399.1 |
403.9 |
+1.2% |
803.1 |
-2.2% |
| |
LCDs |
206.9 |
253.9 |
+22.7% |
460.9 |
-3.7% |
| Electronic Devices |
58.9 |
90.8 |
+54.1% |
149.7 |
+1.3% |
| Device Business |
265.9 |
344.7 |
+29.7% |
610.7 |
-2.5% |
| Sub Total |
665.0 |
748.7 |
+12.6% |
1,413.8 |
-2.3% |
| Adjustments |
-45.3 |
-40.8 |
- |
-86.1 |
- |
| Total |
619.7 |
707.9 |
+14.2% |
1,327.6 |
-1.1% |
Operating Income by Product Group | (Billions of Yen) |
*The percentage figures noted in brackets show operating margin
| |
FY2014 |
| |
1H |
|
| 1Q |
2Q |
Change
(Q on Q) |
Change
(Y on Y) |
| |
Digital Information Equipment |
2.6
(1.6%) |
4.9
(3.0%) |
+87.9%
|
7.5
(2.3%) |
8.8-fold
|
| Health and Environmental Equipment |
3.1
(3.9%) |
4.5
(5.7%) |
+44.9%
|
7.7
(4.8%) |
-19.8%
|
| Energy Solutions |
0.1
(0.3%) |
-0.4
(-0.6%) |
-
|
-0.2
(-0.2%) |
-
|
| Business Solutions |
7.7
(9.8%) |
8.1
(9.6%) |
+5.8%
|
15.9
(9.7%) |
-0.1%
|
| Product Business |
13.7
(3.4%) |
17.2
(4.3%) |
+25.6%
|
30.9
(3.9%) |
-14.9%
|
| |
LCDs |
2.1
(1.0%) |
18.6
(7.4%) |
8.9-fold
|
20.8
(4.5%) |
2.4-fold
|
| Electronic Devices |
-3.5
(-5.9%) |
1.0
(1.1%) |
-
|
-2.4
(-1.6%) |
-
|
| Device Business |
-1.3
(-0.5%) |
19.7
(5.7%) |
-
|
18.3
(3.0%) |
+31.8%
|
| Sub Total |
12.3
(1.9%) |
36.9
(4.9%) |
3.0-fold
|
49.2
(3.5%) |
-2.0%
|
| Adjustments |
-7.6 |
-12.4 |
- |
-20.0 |
- |
| Total |
4.6
(0.8%) |
24.5
(3.5%) |
5.3-fold
|
29.2
(2.2%) |
-13.6%
|
Looking at sales for the first half by product group, Health and Environmental Equipment, Business Solutions, and Electronic Devices showed increased sales, while Digital Information Equipment, Energy Solutions, and LCDs showed decreased sales.
As for operating income, while operating income for Digital Information Equipment and LCDs increased, Health and Environmental Equipment and Business Solutions showed falls in profits and Energy Solutions and Electronic Devices were in the red.
Other Income (Expenses)
In the first half, interest expense increased and expenses related to structural reform on “audio visual,” “white goods,” and “”solar cells” were recorded, but other income (expenses) improved due mainly to equity in earnings of affiliates and gain on sales of investment securities.
Consolidated Balance Sheets
At the end of September 2014, cash and time deposits decreased due to redemption of 100 billion yen straight bonds, and inventory decreased from the end of June. Net assets increased from 207.1 billion yen at the end of March 2014 to 239.2 billion yen, and the equity ratio improved from 8.9% to 10.6%.
Transition of Interest-bearing Debt
Interest-bearing debt at the end of September 2014 totaled 988.0 billion yen, which was a decrease of 104.0 billion yen from the end of June. The ratio vs. monthly sales also decreased 0.82 months to 4.47 months.
Net interest-bearing debt, which is interest-bearing debt minus cash and time deposits, was 696.6 billion yen, a decrease of 36.5 billion yen from 733.2 billion yen at the end of June.
Implementation of the Medium-Term Management Plan
In addition to structural reforms in the European “audio visual,” “white goods,” and “solar cells” businesses, in September 2014, we redeemed 100 billion yen in straight bonds.
Also, initiatives designed to improve the financial condition, such as the sale of held securities, were implemented.