Latest Update : Nov.8, 2013
Overview for the 1H of FY 3/2014 (From April 1, 2013 to September 30, 2013)
The Japanese economy continued on an upward trajectory during the first half of the fiscal year (April 1, 2013 to September 30, 2013) as government initiatives coupled with the weak yen boosted corporate earnings, capital expenditures, and employment, while consumer spending remained steady. The U.S. economy also remained on the road to recovery, fueled by strong domestic demand and growth in the construction industry due to the US government's monetary easing policy. There were signs of bottoming out in the Eurozone as the economies of Germany and the U.K. started picking up despite the lagging sovereign debt crisis which kept unemployment rates high. In Asia, ASEAN countries saw a gradual economic recovery due to the depreciation of currencies as well as falling stock and bond prices while the Chinese economy enjoyed steady growth.
Working against this backdrop, the Minebea Group has been focusing on cutting costs, creating high-value-added products, developing new technologies, and honing its marketing approach to boost profitability further.
As a result, net sales increased substantially by 41,698 million yen (30.0%) year on year to reach 180,799 million yen due partly to the yen's depreciation. Operating income rose 5,303 million yen (68.9%) year on year to total 13,003 million yen, and ordinary income was up 4,809 million yen (69.3%) year on year at 11,751 million yen. Net income for the quarter also increased 5,052 million yen (135.8%) year on year to reach 8,772 million yen.
Performance by Segment for the 1H of FY 3/2014 (From April 1, 2013 to September 30, 2013)
Starting with the consolidated first quarter, we have changed the classification of the business segments in our financial reports. Figures for the first half of last year 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, soared due to our sales expansion efforts and rebounding demand in the automobile market, where they are primarily used, as well as for information-related devices and other markets. Sales remained upbeat with the sales volume hitting a record high in September. Both sales and profits for rod-end bearings increased due to the weak yen as well as high demand in the civil aviation market which was fueled by a growing need for carriers, etc. Sales and profits of pivot assemblies were up thanks to an increased share of the market for high-end products despite a sluggish personal computer market.
As a result, net sales for the first half were up 11,746 million yen (20.6%) year on year to total 68,690 million yen while operating income increased 956 million yen (6.6%) year on year to total 15,427 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. The increase was largely due to a technological edge that enables us to produce ultra-thin light guide plates, and more for the market. The business was also buoyed by increased sales in the automobile market as well as a growing customer base that expanded with the smartphone market. HDD spindle motors and information motors saw increases in both sales and profit as the structural reforms implemented toward the end of last fiscal year had a positive impact on both businesses. Performance for the information motor business, in particular, significantly improved. We worked to enhance production efficiency as well as cost competitiveness by transferring manufacturing operations to our Cambodian plant. Thanks to the growing demand driven by the global economic recovery, all our efforts paid off and the business returned to profitability in the second quarter.
All these factors combined brought net sales for the first six-month period up a whopping 29,919 million yen (36.6%) year on year to total 111,628 million yen. Operating income also jumped 3,410 million yen year on year to total 3,093 million yen.
Other Business Segment
Net sales for the first half in our Other business segment, which includes dies and parts produced in-house, were up 33 million yen (7.4%) year-on-year to total 480 million yen. Operating income also increased 324 million yen (413.1%) year on year to total 402 million yen.
In addition to the figures noted above, 5,919 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments for the first half of last fiscal year amounted to 6,532 million yen.
Analysis of Financial Position for the 1H of FY 3/2014 (From April 1, 2013 to September 30, 2013)
Assets, Liabilities, and Net Assets
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 current second quarter amounted to 377,719 million yen, up 14,914 million yen compared to the end of the previous fiscal year. The main reasons for this uptick include increases in notes and accounts receivable, inventories, as well as investment in securities. Total liabilities amounted to 230,557 million yen, with an increase of 5,610 million yen compared to the end of the previous fiscal year. This jump was primarily due to increases in notes and accounts payable and a decrease in short-term loans payable. Net assets totaled 147,161 million yen, with an increase of 9,303 million yen over what it was at the end of the previous fiscal year. Equity ratio rose 1.0 percentage points above what it was at the end of the previous fiscal year to reach 37.2%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the current second quarter was 26,745 million yen, down 1,477 million yen from what it was at the end of the previous fiscal year but up 7,208 million yen on a year-on-year basis.
Cash flows from various business activities during the first fiscal half and relevant factors are as follows: Net cash provided by operating activities amounted to 22,967 million yen, up 15,093 million yen year on year owing to increases in income before income taxes and minority interests, notes and accounts receivable, as well as notes and accounts payable along with depreciation and amortization costs, etc. Net cash used for investment activities decreased 7,166 million yen year on year, to total 13,959 million yen due primarily to the acquisition of tangible fixed assets and shares in subsidiaries. Net cash from financing activities declined 21,548 million yen year on year due to a cash outflow of 11,445 million yen for the repayment of short-term loans payable as well as a dividend payment, etc.
The content of this page is based on information included in the "Consolidated Financial Information for the Second Quarter of Fiscal Year Ending March 2014 (From April 1, 2013 to September 30, 2013)" announced on November 3, 2013.