Latest Update : May 9, 2019
Overview for the FY 3/2019 (From April 1, 2018 to March 31, 2019)
During the fiscal year under review, the Japanese economy showed a gradual recovery in the first half, reflecting solid consumer spending and corporate earnings. However, in the second half, there was increasing uncertainty over the future due to a decline in business confidence arising from trade friction between the United States and China and a decrease in exports due to deceleration of the global economy. The U.S. economy was strong against a backdrop of improving employment conditions despite being impacted by the worsening trade dispute between the United States and China. The European economy declined due to a suspension of corporate activities based on concern over confusion arising from Brexit. In Asia, the Chinese economy slowed, primarily due to decreased exports arising from intensifying trade friction with the United States and a drop in domestic capital investments.
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 3,309 million yen (0.4%) year on year to 884,723 million yen, the highest since our founding. Operating income was up 3,131 million yen (4.5%) year on year to 72,033 million yen, profit before income taxes was up 4,466 million yen (6.7%) to 71,321 million yen, and profit for the year attributable to owners of the parent was up 9,816 million yen (19.5%) to 60,142 million yen.
Performance by Segment for the FY 3/2019 (From April 1, 2018 to March 31, 2019)
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. External sales of ball bearings increased to 2,347 million units, the highest ever, as demand soared for energy-efficient models and safety devices in the automobile market and for fan motors. Rod-end bearing sales increased owing to favorable orders in the small and medium aircraft market. Meanwhile, pivot assembly sales were down both in volume and amount despite our solid market share due to shrinking of the HDD market.
As a result, net sales were up 11,897 million yen (6.7%) year on year to 188,324 million yen, and operating income was up 6,743 million yen (16.4%) to 47,750 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as 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 strong performance primarily in the automobile market. LED backlights for LCDs sales were down due to the slowdown of smartphone demand.
As a result, net sales were down 64,586 million yen (-14.3%) year on year to 387,293 million yen, and operating income was down 7,174 million yen (-29.8%) to 16,922 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 camera actuators, mechanical parts for game consoles, switches, products for smartphones such as protection IC, antennas, communication modules and connectors.
As a result, net sales were up 56,008 million yen (22.2%) year on year to 308,423 million yen, and operating income was up 2,213 million yen (11.0%) to 22,282 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were down 9 million yen (-1.3%) year on year to 683 million yen, but the operating loss fell 421 million yen to 386 million yen.
In addition to the figures noted above, 14,535 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. Adjustments in the previous fiscal year came to 15,463 million yen.
Analysis of Financial Position for the FY 3/2019 (From April 1, 2018 to March 31, 2019)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient controlling capital investments, asset management, and reducing interest-bearing debt.
Total assets at the end of the fiscal year under review were 742,127 million yen, up 38,569 million yen from the end of the previous fiscal year. The main reason for this was an increase in cash and cash equivalents and property, plant, and equipment.
Total liabilities were down 5,470 million yen year on year to 334,867 million yen. This was primarily due to a decrease in income taxes payable.
Equity came to 407,260 million yen, and equity attributable to owners of the parent ratio was up 3.3 percentage points year on year to 53.9%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the fiscal year under review was up 33,655 million yen year on year to 122,432 million yen.
Cash flows from various business activities during the fiscal year under review and other relevant factors are as follows:
Net cash provided by operating activities amounted to 100,722 million yen (an inflow of 92,201 million yen in the previous fiscal year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivable, and inventories, etc. Net cash used for investing activities amounted to 54,190 million yen (an outflow of 54,853 million yen in the previous fiscal year). This was primarily due to purchase of property, plant and equipment. Net cash used for financing activities amounted to 13,334 million yen (an outflow of 27,026 million yen in the previous fiscal year). This was primarily due to the purchase of treasury stock and dividends paid, etc.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2019 (From April 1, 2018 to March 31, 2019)" announced on May 8, 2019.