Latest Update : May 18, 2015
Overview for FY 3/2015 (From April 1, 2014 to March 31, 2015)
The Japanese economy saw corporate earnings increase during the fiscal year under review as government economic initiatives and the Bank of Japan's monetary easing coupled with the weakening yen in the foreign exchange market all fueled financial performance. Consumer spending also steadily grew thanks to high stock prices and the improved job market. Driven by improved employment and growing consumer spending on top of increased capital expenditures that went hand in hand with higher corporate earnings, the U.S. economy continued on its gradual recovery track. In Europe, the economy managed to steadily inch forward in the shadow of the Greek sovereign debt crisis, Ukrainian political crisis, and declining crude oil prices. ASEAN countries enjoyed moderate economic recoveries while China saw its economic growth rate decline in the face of an assortment of major problems.
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 profitability.
As a result, net sales soared by 129,133 million yen (34.8%) year on year to total 500,676 million yen, reaching 500 billion yen for the first time ever. Operating income rose 27,902 million yen (86.7%) year on year to total 60,101 million yen while ordinary income was up 32,075 million yen (114.3%) year on year at 60,140 million yen. Net income also grew 19,009 million yen (91.0 %) year on year to total 39,887 million yen. All of these totals were record highs.
Performance by Segment for FY 3/2015 (From April 1, 2014 to March 31, 2015)
Machined Components Business Segment
Products in our Machined components business segment include our mainstay, 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 automobiles and aircraft. Ball bearings enjoyed gains in both sales and profits as demand grew in major markets. Buoyed by growing demand for vehicles with enhanced fuel economy, comfort, and safety features, sales to the automobile industry were particularly robust. Sales of rod-end bearings remained strong, especially in the civil aviation market. Sales and profits of pivot assemblies were up thanks to solid demand for high-end products used in data centers, etc. despite the stagnant HDD market.
As a result, net sales increased 14,954 million yen (10.7%) year on year to reach 154,986 million yen, and operating income rose 6,163 million yen (18.4%) year on year, to total 39,713 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (LED backlights for LCDs 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. Sales and profits of LED backlights for LCDs soared year on year. This increase resulted from a surge in demand for Minebea products boasting both a technological and supply edge in the growing market for high-end smartphones. Efforts to expand the customer base for our measuring components paid off and we saw both sales and profits steadily increase. Our Electro Mechanics Solutions (EMS) business also enjoyed sales and profit growth. Sales of HDD spindle motors, information motors, etc. also rose. The information motors business, in particular, saw increases in both sales and profits thanks to growing sales to the office automation, automobile, and other markets. Cost cutting efforts aligned with the transfer of manufacturing operations for some products to our Cambodian plant, as well as improved quality and production efficiency also contributed to the better performance.
In the end, net sales for this fiscal year were up significantly by 113,328 million yen (49.2%) year on year to reach 343,842 million yen. Operating income increased a whopping 20,139 million yen (210.2%) year on year to total 29,720 million yen.
Other Business Segment
Net sales for this fiscal year in our Other business segment, which includes dies and parts produced in-house, were up 852 million yen (85.5%) year on year to total 1,848 million yen while operating income fell 7 million yen (-0.8%) year on year to hit 859 million yen.
In addition to the figures noted above, 10,191 million yen in corporate expenses, etc. not belonging to any particular segment has been recorded as adjustments. Adjustments for the previous fiscal year amounted to 11,799 million yen on a consolidated basis.
Analysis of Financial Position for FY 3/2015 (From April 1, 2014 to March 31, 2015)
Assets, Liabilities, and Net Assets
The Minebea Group sees "strengthening our financial position" as a top priority and is taking various steps, such as reducing total assets and liabilities with interest as well as cutting back on capital investments. Over the past few years, however, we have been making aggressive capital investments to boost our business performance.
Total assets at the end of the consolidated fiscal year under review amounted to 490,043 million yen, up 108,765 million yen over what it was at the end of last fiscal year. The main reasons for this uptick include increases in notes and accounts receivable, inventories, as well as tangible fixed assets due to the rapid growth of the Electronic devices and components business.
Total liabilities at the end of the consolidated fiscal year under review amounted to 256,363 million yen, with a year on year increase of 38,549 million yen. This jump was primarily due to increases in notes and accounts payable as a result of expanded business operations.
Net assets amounting to 233,679 million yen worked to increase the equity ratio by 4.7 percentage points year on year to bring it to 46.1%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the consolidated fiscal year under review totaled 36,137 million yen, up 7,106 million yen from what it was at the end of the previous fiscal 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 amounted to 59,864 million yen, up 10,691 million yen year on year due to a cash inflow from increased income before income taxes and minority interests as well as depreciation and amortization costs, etc. This was despite a cash outflow from increased notes and accounts receivable, inventories, etc. that went hand in hand with the expansion of business operations.
Investing activities: Net cash used for investment activities rose 10,369 million yen year on year, to total 35,326 million yen as a result of aggressive capital investments, etc. needed to expand operations.
Financing activities: Net cash from financing activities declined 5,606 million yen year on year due to a cash outflow of 19,627 million yen for the repayment of long- and short-term loans as well as a dividend payment, etc.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2015 (From April 1, 2014 to March 31, 2015)" announced on May 8, 2015.