Latest Update : Aug.7, 2013
Overview for the 1Q of FY 3/2014 (From April 1, 2013 to June 30, 2013)
The Japanese economy continued to improve during the first quarter (April 1, 2013 to June 30, 2013). The government's urgent economic measures and monetary easing by the Bank of Japan along with the weak yen in the foreign exchange market drove exports up and helped improve corporate performance, leading to a better employment situation and higher consumer spending. In the U.S., the economy remained on a gradual recovery track fueled by strong domestic demand while new construction picked up and unemployment improved due to its monetary easing policy. The European economy, on the other hand, remained sluggish due to a climbing unemployment rate and declining capital expenditures although the economy in the eurozone showed signs of having bottomed out. In Asia, the Chinese economy slowed down due to decreases in exports and investments while all ASEAN countries enjoyed a healthy economy buoyed by robust consumer spending as a result of higher income levels despite sagging exports.
Working against this backdrop, the Minebea Group has been focusing on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to further boost the profitability.
As a result, net sales increased 16,696 million yen (24.3%) year on year, to reach 85,317 million yen due partly to the yen's depreciation. Operating income fell 155 million yen (-4.2%) year on year to total 3,538 million yen, and ordinary income was down 300 million yen (-8.9%) year on year at 3,068 million yen. Despite these decreases, net income for the quarter increased 1,134 million yen (66.0%) year on year to reach 2,852 million yen.
Performance by Segment for the 1Q of FY 3/2014 (From April 1, 2013 to June 30, 2013)
Starting with this consolidated first quarter, we have changed the classification of the business segments in our financial reports. Figures for last year's first quarter were recalculated for the new segment classification in the following year-on-year comparisons.
Machined Components Business Segment
Our products in the Machined components business segment include our mainstay product, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, as well as fasteners for automobiles and aircraft. Sales of our anchor product, ball bearings, remained strong as a result of our sales expansion efforts to meet the increasing demand in China and other markets. External sales to the automobile, information-related device, and other markets picked up significantly in the latter half of March and the sales volume hit a record high in May. Rod-end bearing sales also increased thanks to robust demand in the aircraft market. Pivot assembly sales fell below what they were in the first quarter of last year when we saw a surge in demand associated with the recovery from the flooding in Thailand.
In the end, net sales for the first three-month period rose 4,126 million yen (13.8%) year on year to total 34,092 million yen. Operating income was down 574 million yen (-7.7%) year on year, to total out at 6,889 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (liquid crystal display backlights and measuring components), HDD spindle motors, information motors (stepping motors, brushless motors, DC brush motors, and fan motors), precision motors, and special devices. Our liquid crystal display (LCD) backlight business improved significantly thanks to a huge jump in sales all due to our technological advantage and expanded customer base as demand for smartphones grew. HDD spindle motors and information motors dipped into the red since the impact of the structural reforms implemented toward the end of the last fiscal year was not yet evident in April.
Operational performance, however, consistently edged up every month as sales of high-value-added HDD spindle motors increased along with rising sales of information motors.
All these factors combined brought net sales for the first quarter up substantially by 12,548 million yen (32.6%) year on year to total 50,982 million yen. Our operating loss decreased 120 million yen year on year to reach 327 million yen.
Other Business Segment
First quarter net sales for our Other business segment, which includes dies and parts produced in-house, totaled 242 million yen. That was a year-on-year increase of 22 million yen (10.2%). Operating income, on the other hand, declined 23 million yen (-58.8%) year on year to total 15 million yen.
In addition to the figures above, 3,040 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments for the previous fiscal year's first quarter amounted to 3,361 million yen.
Analysis of Financial Position for the 1Q of FY 3/2014 (From April 1, 2013 to June 30, 2013)
Assets, Liabilities, and Net Assets
Explanation of Financial Position The Minebea Group sees "strengthening its financial standing" as a top priority and is taking various steps, such as reducing total assets and liabilities, to bolster its financial foundation.
Total assets at the end of the first three-month period amounted to 369,351 million yen, up 6,546 million yen compared to the end of the previous fiscal year. The main reasons for this uptick include increases in notes and accounts receivable as well as investment securities. Total liabilities amounted to 227,492 million yen, with an increase of 2,545 million yen compared with the end of the previous fiscal year. This was primarily due to increases in notes and accounts payable. Net assets totaled 141,859 million yen, with an increase of 4,001 million yen compared with the end of the previous fiscal year.
Equity ratio was up 0.4 percentage points compared with the end of the previous fiscal year to reach 36.6%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the first quarter was 19,337 million yen, declining 8,885 million yen from what it was at the end of the previous fiscal year but up 255 million yen on a year-on-year basis.
Cash flows from various business activities during the current first quarter and relevant factors are as follows:
Net cash provided by operating activities increased 4,055 million yen year on year, to total 5,314 million yen due to increases in income before income taxes and notes and accounts receivable, notes and accounts payable. Net cash used for investment activities totaled 7,141 million yen, down 3,129 million yen year on year, due primarily to the acquisition of tangible fixed assets. Net cash from financing activities declined 13,035 million yen year on year due to a cash outflow of 7,887 million yen for the repayment of short-term loans as well as a dividend payment, etc.
The content of this page is based on information included in the "Consolidated Financial Information for the First Quarter of Fiscal Year Ending March 2014 (From April 1, 2013 to June 30, 2013)" announced on July 31, 2013.