Latest Update : Sept.5, 2018
* Our Group have adopted the IFRS from the 1Q of this FY2/2019. Accordingly, for the purposes of comparative analysis, financial results for the 1Q of the previous fiscal year and for the previous fiscal year have been adjusted in line with the IFRS.
Overview for the 1Q of FY 3/2019 (From April 1, 2018 to June 30, 2018)
During the first quarter of the fiscal year (April 1, 2018 through June 30, 2018), the Japanese economy continued a gradual recovery, reflecting solid consumer spending and corporate earnings. Despite rising long-term interest rates and increasing concerns over escalating trade frictions, the U.S. economy remained firm against the backdrop of improved employment conditions and domestic demand. In Europe, consumer spending, corporate production and exports remained steady due to improved employee compensation and growing domestic demand. In Asia, corporate production increased in China owing to expansion of domestic demand, and consumer spending remained robust in response to favorable employment and income conditions. Uncertainty remained, however, over the prospects of a trade war with the United States.
Working against this backdrop, the MinebeaMitsumi Group concentrated on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
As a result, net sales were up 17,969 million yen (9.2%) year on year to 213,038 million yen, the highest ever for the first quarter. Operating income was down 2,407 million yen (-14.4%) year on year to 14,291 million yen, profit before income taxes was down 2,006 million yen (-12.4%) to 14,170 million yen, and profit for the period attributable to owners of the parent was down 1,717 million yen (-13.6%) to 10,886 million yen.
Performance by Segment for the 1Q of FY 3/2019 (From April 1, 2018 to June 30, 2018)
Machined Components Business Segment
The main products in our Machined components segment include our anchor product line, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc. as well as fasteners for aircraft.
Sales of ball bearings increased as demand soared for energy-efficient models, safety devices in the automobile market and for fan motors. Rod-end bearing sales increased in response to a recovery in orders in the small and medium aircraft market despite continued decline in production of large models in the civil aircraft market. Pivot assembly sales were also up as our market share remained steady despite the negative impact of the shrinking HDD market.
As a result, net sales were up 6,496 million yen (15.9%) year on year to 47,255 million yen, and operating income was up 1,590 million yen (15.7%) to 11,701 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers (fan motors), precision motors, and special devices.
Sales of stepping motors and other motors were up owing to favorable trends primarily in the automobile market. Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong, but sales were down due to shrinking of the smartphone market.
As a result, net sales were down 13,103 million yen (-12.5%) year on year to 91,705 million yen, and operating income was down 4,748 million yen (-71.6%) to 1,885 million yen.
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Almost all products performed well, including game console and other mechanism components, switches, products for smartphones such as protection IC, antennas, communication modules and connectors. On the other hand, sales of camera actuators were down due to shrinking of the smartphone market.
As a result, net sales were up 24,568 million yen (49.8%) year on year to 73,900 million yen, but operating income was down 273 million yen (-8.3%) to 3,007 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 8 million yen (4.7%) year on year to 178 million yen, and the operating loss shrank 76 million yen to 95 million yen.
In addition to the figures noted above, 2,207 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 3,155 million yen during the same period last year.
Analysis of Financial Position for the 1Q of FY 3/2019 (From April 1, 2018 to June 30, 2018)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient asset management, controlling capital investments, and reducing interest-bearing debt.
Total assets at the end of the first quarter were 723,199 million yen, up 19,641 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in inventories and property, plant and equipment.
Total liabilities at the end of the first quarter were 355,500 million yen, up 15,163 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables.
Equity came to 367,699 million yen, bringing the equity ratio attributable to owners of the parent down 0.8 percentage points from the end of the previous fiscal year to 49.8%.
Condition of Cash Flows
Cash and cash equivalents at the end of the first quarter were 83,247 million yen, down 5,530 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first three months of the fiscal year and relevant factors were as follows:
Net cash provided by operating activities amounted to 14,907 million yen (compared to 28,820 million yen in the same period of the previous year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, inventories, and trade and other payables.
Net cash used in investing activities amounted to 14,754 million yen (compared to 8,688 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment.
Net cash used in financing activities amounted to 5,567 million yen (compared to 4,424 million yen in the same period of the previous year). This was primarily due to dividends paid.
The content of this page is based on information included in the "Brief Report for First Quarter of Fiscal Year Ending March 2019 (From April 1, 2018 to June 30, 2018)" announced on August 3, 2018.