Performance (sales, profit and loss)

Overview

Consolidated for the FY3/2023, net sales were up 168,063 million yen (15.0%) year on year to 1,292,203 million yen. Operating income was up 9,386 million yen (10.2%) year on year to 101,522 million yen, profit before income taxes was up 5,332 million yen (5.9%) year on year to 96,120 million yen, and profit for the year attributable to owners of the parent was up 8,075 million yen (11.7%) year on year to 77,010 million yen. In each of these three areas we achieved record highs.
HONDA TSUSHIN KOGYO CO., LTD. was made a subsidiary on September 16, 2022 and Minebea AccessSolutions Inc. was made a subsidiary on January 27, 2023 (at the same time, renamed Honda Lock Mfg. Co., Ltd.). Those companies have been included in the scope of consolidation. In addition to the companies' profits and losses from the date of the business integration on, the above includes 25,728 million yen of negative goodwill arising from the business combination with Minebea AccessSolutions Inc.

For the FY3/2024, net sales for this fiscal year are expected to hit a record high.
Although we expect net sales for mechanical components to decline, overall sales are projected to increase to 1,450 billion yen due to growth in business driven by bearings, motors, and access products, as well as the integration of Minebea AccessSolutions.
Operating income is projected to increase in Precision Technologies, Motor, Lighting & Sensors, and Access Solutions as we expect the market to recover in the second half of the year.

Performance by Segment

Machined Components Business Segment

Consolidated for the FY3/2023, net sales were up 19,830 million yen (11.2%) year on year to 197,300 million yen, while operating income was down 2,766 million yen (-6.1%) year on year to 42,951 million yen.
Sales of ball bearings, our Group's mainstay product, increased due to an increase in demand for automotive parts in line with a recovery in automobile production. Sales of rod-end bearings increased due to a recovery in demand for aircraft-related products. Meanwhile, net sales of pivot assemblies decreased due to a decrease in demand.

For the FY3/2024, we expect sales of ball bearings are expected to increase due to gradual recovery of demand for automobiles, and demand for servers is expected to recover from the second half of the fiscal year. In our aircraft-related businesses, including rod-ends and fasteners, we expect full scale recovery in the second half of this fiscal year. For pivot assembly, we also expect recovery of demand in the second half of this fiscal year.

Electronic Devices and Components Business

Consolidated for the FY3/2023, net sales were down 4,748 million yen (-1.3%) year on year to 366,275 million yen, and operating income was down 20,639 million yen (-95.7%) year on year to 922 million yen.
Net sales were down, primarily due to a decline in models using LED backlights and a decline in demand for HDD spindle motors.

Both net sales and operating income will increase for the FY3/2024 as we expect to see a gradual recovery in demand for automotive motors as well as a rebound in demand for HDD motors in the second fiscal half. Net sales of electronic devices are expected to remain basically flat while operating income will decline slightly. Both net sales and operating income for sensing devices are projected to remain mostly unchanged.

MITSUMI Business

Consolidated for the FY3/2023, net sales were up 101,348 million yen (23.6%) year on year to 530,464 million yen, and operating income also increased by 894 million yen (2.1%) year on year to 42,740 million yen.
Optical devices for camera actuators performed well, resulting in an increase in net sales. Profit and loss of HONDA TSUSHIN KOGYO CO., LTD. are included in the MITSUMI business segment in conjunction with its acquisition.

Although optical devices and semiconductors will remain upbeat, net sales and operating income for the FY3/2024 are expected to decline slightly overall since we project a decrease in sales and profit for mechanical components.

U-Shin Business

Consolidated for the FY3/2023, net sales were up 49,122 million yen (33.7%) year on year to 194,699 million yen, and operating income was 22,302 million yen, an improvement of 21,570 million yen.
Net sales of automotive components were up owing to increased demand resulting from an increase in automobile production. In conjunction with the acquisition of Minebea AccessSolutions Inc., the earnings and gain on bargain purchase of the company are included in the U-Shin business.

Net sales and operating income for the FY3/2024 are expected to increase due to the effects of the business integration and a recovery in automobile production.

Other Business Segment and Adjustment

Machines produced in-house are the main products in our Group's Other business segment. Net sales were up 2,511 million yen (263.0%) year on year to 3,465 million yen, and operating loss was 1,290 million yen, an improvement of 49 million yen year on year.
In addition to the figures noted above, 6,103 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. This adjustment includes 13,016 million yen of gain on sale of fixed assets associated with the sale of the former Tokyo head office building. Adjustments in the previous fiscal year came to 16,381 million yen.

Related links

• Financial Data
• Financial Results
• Business Reports
• Integrated Reports

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