Latest Update : May 15, 2014
Overview for FY 3/2014 (From April 1, 2013 to March 31, 2014)
The Japanese market during the fiscal year that ended on March 31, 2014 remained upbeat as government initiatives and the Bank of Japan's monetary easing policy coupled with the weak yen in the foreign exchange market boosted corporate earnings, capital expenditures, and employment while consumer spending remained steady. In the U.S., the economy remained on a steady recovery track fueled by strong domestic demand while new construction picked up and unemployment improved due to its monetary easing policy. Despite the prolonged sovereign debt crisis and unemployment rates that remained high in Greece, Spain and other European countries, the economy in the eurozone, especially Germany and the U.K., saw a gradual comeback. However, the Ukrainian political crisis that erupted in February has cast a dark shadow over the economic horizon. In Asia, although China lost momentum in the first quarter due to declining exports and investments, the economy gradually picked up steam again and exports increased during the rest of the fiscal year. While ASEAN economies were affected by weak currencies as well as low stock and bond prices during the second quarter, they eventually got back on track towards gradual recovery.
Working against this backdrop, the Minebea Group has been moving ahead to cut costs, create high-value-added products, develop new technologies, and enhance its marketing efforts with an eye to boosting profitability.
As a result, net sales increased 89,134 million yen (31.6%) year on year to reach a record high of 371,543 million yen while operating income jumped 22,030 million yen (216.6%) year on year to total 32,199 million yen. Ordinary income increased a whopping 20,392 million yen (265.7%) year on year to reach 28,065 million yen. Extraordinary income totaling 1,675 million yen was posted from the sale of shares in subsidiaries and affiliates, etc. while extraordinary losses totaling 2,928 million yen included losses due to business restructuring, impairment, etc. Net income for the fiscal year under review increased 19,074 million yen year on year to reach 20,878 million yen for a new record high.
Performance by Segment for FY 3/2014 (From April 1, 2013 to March 31, 2014)
Starting with the fiscal year under review, we have changed the classifications of the business segments in our financial reports. Figures for the last fiscal year were recalculated for the new segment classifications 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 primarily used in aircraft, hard disk drive (HDD) pivot assemblies, etc., as well as fasteners for automobiles and aircraft. Sales of our anchor product, ball bearings, were strong across our major markets including the automobile and information-related device markets, with monthly sales volumes repeatedly hitting all-time highs. Production also remained up, which brought production costs down and led to a substantial year-on-year profit hike. Increased orders for rod-end bearings fueled sales and profits thanks to soaring demand in the civil aviation market as airline companies replaced their aging fleets with newer aircraft models. Sales and profits of pivot assemblies were up thanks to an increased share of the market for high-end products used in data centers, etc. although the HDD market remained flat.
As a result, net sales increased 26,459 million yen (23.3%) year on year to reach 140,032 million yen while operating income was up 8,091 million yen (31.8%) year on year to total 33,550 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, etc.), HDD spindle motors, information motors (stepping motors, DC brushless motors, DC brush motors, and fan motors), precision motors, and special devices. The liquid crystal display (LCD) backlight business enjoyed substantial year-on-year gains in both sales and profits. Growing demand in the smartphone market buoyed sales of our technologically unparalleled ultra-thin light guide plates for high-end product applications as our customer base and market share expanded. HDD spindle motors and information motors saw increases in sales while the structural reforms implemented toward the end of last fiscal year boosted profitability. The information motor business' performance, in particular, steadily improved after it returned to profitability in the second quarter as a result of our efforts to enhance production efficiency as well as cost competitiveness by transferring manufacturing operations to our Cambodian plant on top of the growing demand driven by the global economic recovery. Performance of measuring components was also upbeat thanks to increasing sales to the automobile sector along with the ongoing recovery of demand for test equipment.
All these factors combined brought net sales for the fiscal year under review up a significant 62,603 million yen (37.3%) year on year to total 230,514 million yen. Operating income also jumped 12,033 million yen year on year to total 9,581 million yen.
Other Business Segment
Net sales for the fiscal year under review in our Other business segment, which includes dies and parts produced in-house increased 72 million yen (7.8%) year on year to total 996 million yen. Operating income was up 699 million yen (417.1%) year on year to reach 866 million yen.
In addition to the figures noted above, 11,799 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments for the previous fiscal year amounted to 13,004 million yen on a consolidated basis.
Analysis of Financial Position for FY 3/2014 (From April 1, 2013 to March 31, 2014)
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 with interest as well as cutting back capital investments. Over the past few years, however, we have been making aggressive capital investments to enhance our business performance.
Total assets at the end of the current consolidated fiscal year amounted to 381,278 million yen, up 18,473 million yen over what it was at the end of the last fiscal year. The major reasons for this uptick include an increase in notes and accounts receivable and inventories as well as an upswing in investments in securities.
Total liabilities at the end of the current consolidated fiscal year amounted to 217,814 million yen, with a year on year decrease of 7,133 million yen due mainly to a decrease in long-term and short-term loans.
Net assets amounting to 163,463 million yen worked to increase the equity ratio by 5.2 percentage points year on year, to 41.4%.
Condition of Cash Flows
The balance of cash and cash equivalents in the current consolidated fiscal year totaled 29,031 million yen, up 808 million yen year on year.
Cash flows from various business activities during the current consolidated fiscal year and relevant factors are as follows:
Operating activities: Net cash provided by operating activities increased 26,183 million yen year on year, to total 49,173 million yen due mainly to increases in income before income taxes and minority interests, notes and accounts receivable, notes and accounts payable, inventories as well as depreciation and amortization costs.
Investing activities: Net cash used for investment activities decreased 12,856 million yen year on year, to total 24,957 million yen due primarily to the acquisition of tangible fixed assets and shares from subsidiaries, etc.
Financing activities: Net cash from financing activities declined 42,642 million yen year on year due to a cash outflow of 25,233 million yen for the repayment of long-term and 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 Fiscal Year Ended March 2014 (From April 1, 2013 to March 31, 2014)" announced on May 9, 2014.