Latest Update : Feb.6, 2020
Overview for the 3Q of FY 3/2020 (From April 1, 2019 to December 31, 2019)
During the first nine months of the fiscal year, the Japanese economy declined in response to sluggish automotive sales both in Japan and overseas, deceleration of overseas economies, and other such factors. In the United States, the stock market recorded record highs in response to progress on trade negotiations between the United States and China, but uncertainty over the future has increased due to concerns about a worsening of the situation in the Middle East, including Iran. There are signs that business confidence has leveled off in the European manufacturing industry, but it will likely take some time to turn around the slow growth. In Asia, there are signs that the Chinese economy has bottomed out as a result of government policies, but uncertainty remains about trade friction with the United States, so the economy remains sluggish.
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 52,610 million yen (7.5%) year on year to 751,548 million yen. Operating income was down 18,946 million yen (-29.1%) year on year to 46,093 million yen, profit before income taxes was down 18,543 million yen (-28.7%) to 46,066 million yen, and profit for the period attributable to owners of the parent was down 15,829 million yen (-31.0%) to 35,204 million yen.
U-Shin Ltd. was made a subsidiary through a tender offer on April 10, 2019. The company has been included in the scope of consolidation as of the date of the business integration. This includes the company's profits and losses from the date of the business integration on.
Performance by Segment for the 3Q of FY 3/2020 (From April 1, 2019 to December 31, 2019)
In conjunction with the acquisition of U-Shin Ltd., the U-Shin business is disclosed as a reporting segment as of the first quarter. Additionally, the battery module products that were included under the MITSUMI business were transferred to the Electronic devices and components business. Accordingly, segment information has been updated to reflect this change in company organization.
The segment information disclosed for the third quarter of the previous year has been prepared based on the post-change reportable segments.
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. Sales of ball bearings were down both in volume and amount due to decreased demand from fan motors despite solid demand in the automobile and air conditioner market. Rod-end bearing sales increased owing to favorable orders in the small and medium aircraft market. Pivot assembly sales were down both in volume and amount due to shrinking of the HDD market.
As a result, net sales were down 6,373 million yen (-4.5%) year on year to 136,429 million yen, and operating income was down 6,567 million yen (-17.7%) to 30,496 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, and special devices. Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong. Sales of stepping motors and other motors were down due to decreased demand associated with sluggishness in the automobile market.
As a result, net sales were down 11,379 million yen (-3.8%) year on year to 290,390 million yen, while operating income was down 1,798 million yen (-10.8%) to 14,839 million yen.
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Although camera actuators performed well, sales were down due to the decrease in game consoles and other mechanical components.
As a result, net sales were down 24,065 million yen (-9.5%) year on year to 229,821 million yen, and operating income was down 8,854 million yen (-38.0%) to 14,454 million yen.
The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial machinery components and housing equipment components (such as building and house locks). Operations related to automotive components were substantially reduced due to the impact of deceleration in the automotive market in China and Europe, etc. Demand for industrial machinery components was also stagnant due to market deceleration in China.
As a result, net sales were 94,267 million yen, and operating income was 2,731 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 160 million yen (33.2%) year on year to 641 million yen, and the operating loss increased 956 million yen year on year to total 1,118 million yen.
In addition to the figures noted above, 15,309 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 11,807 million yen for the third quarter of the previous fiscal year.
Analysis of Financial Position for the 3Q of FY 3/2020 (From April 1, 2019 to December 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 third quarter were 912,940 million yen, up 170,813 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in trade and other receivables, inventories and property, plant and equipment.
Total liabilities at the end of the third quarter were 484,017 million yen, up 149,150 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables and bonds and borrowings.
Equity came to 428,923 million yen, bringing the equity ratio attributable to owners of the parent down 7.8 percentage points from the end of the previous fiscal year to 46.1%.
Condition of Cash Flows
Cash and cash equivalents at the end of the third quarter were 124,026 million yen, up 1,594 million yen from the end of the previous fiscal year.
Cash flows from various business activities during of the first nine months of the fiscal year and relevant factors were as follows:
Net cash flows provided by operating activities came to 52,706 million yen (compared to 68,519 million yen in the same period of the previous year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, and inventories. Net cash flows used in investing activities came to 36,398 million yen (compared to 45,123 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment, etc. Net cash flows used in financing activities came to 9,830 million yen (compared to 3,285 million yen in the same period of the previous year). This was primarily due to repayments of long-term borrowings and dividends paid, despite proceeds from long-term borrowings.
The content of this page is based on information included in the "Brief Report for Third Quarter of Fiscal Year Ending March 2020 (From April 1, 2019 to December 31, 2019)" announced on February 5, 2020.