2009
May 8, 2009
Minebea Co., Ltd.
Notice regarding Revision of Full Year Earnings and Year-end Dividends Forecasts
Based on its recent earnings, Minebea Co., Ltd. revises the full-year earnings forecasts for the fiscal year ending March 31, 2009 (April 1, 2008 - March 31, 2009) announced on January 30, 2009 as follows:
1. Revision of Full Year Earnings Forecasts
(1) Full Year Consolidated Earnings Forecast
| Net sales | Operating Income | Ordinary Income | Net Income | Net Income per Share |
|
|---|---|---|---|---|---|
| (Millions of yen) | (Millions of yen) | (Millions of yen) | (Millions of yen) | (Yen) | |
| Previous forecast (A) (announced on January 30, 2009) |
260,000 | 17,500 | 15,500 | 6,500 | 16.46 |
| Revised forecast (B) | 256,163 | 13,406 | 11,555 | 2,441 | 6.18 |
| Difference (B-A) | -3,837 | -4,094 | -3,945 | -4,059 | - |
| Difference (%) | -1.5 | -23.4 | -25.5 | -62.4 | - |
| (Reference) Results for the fiscal year ended March 31, 2008 | 334,431 | 30,762 | 27,691 | 16,303 | 40.86 |
(2) Full Year Non-Consolidated Earnings Forecast
Non-Consolidated Earnings (April 1, 2008 through March 31, 2009)
| Net Sales | Operating Income | Ordinary Income | Net Income | Net Income per Share |
|
|---|---|---|---|---|---|
| (Millions of yen) | (Millions of yen) | (Millions of yen) | (Millions of yen) | (Yen) | |
| Previous forecast (A) (announced on January 30, 2009) |
185,000 | 500 | 6,300 | 3,500 | 8.86 |
| Revised forecast (B) | 175,066 | -386 | 8,627 | 3,770 | 9.55 |
| Difference (B-A) | -9,934 | -886 | 2,327 | 270 | - |
| Difference (%) | -5.4 | -177.2 | 36.9 | 7.7 | - |
| (Reference) Results for the fiscal year ended March 31, 2008 | 225,071 | 6,630 | 12,265 | 4,304 | 10.79 |
(3) Reasons for revision
The world economy is facing the serious effects of the current financial crisis that originated in the United States and triggered an aggravation of economic conditions. Consequently, in comparison with the previous fourth quarter, the Minebea Group has been under severer management circumstances in the second half of the fiscal year.
During this fourth quarter, we experienced a severe business downturn which went far beyond our initial expectations and we were forced to undergo production cutbacks in response to the deteriorating product markets and customers' inventory adjustments.
As a result, the consolidated business results demonstrated decreased sales owing to both weak demands and the appreciation of the yen. Operating income also fell due to increased costs stemming from slowing sales and production cutbacks. Current net income also dropped significantly resulting from the costs and higher tax rates applied to the business reorganizations carried out flexibly to our subsidiaries in Thailand, the U.K., and the U.S. in a response to weak demands. Above all, we have revised the predicted business performance for the fiscal year ended March 31, 2009 as described previously.
Regarding non-consolidated results, operating income also showed a loss along with a sales downturn that caused a loss in profits. On the other hand, both ordinary income and current income surpassed our prediction resulting from increased dividends received from our subsidiaries.
(Note) The above business performance has been predicted by referring to information available at the time of the release of this document. The actual results may differ from the predicted figures due to a variety of factors that may be observed in the days ahead.
2. Revision of the predicted dividends
(1) Details of the revision
| Dividend per share | |||
|---|---|---|---|
| Record date | End of the second quarter | Period end | Year |
| Previous prediction (announced on October 31, 2008) | 5.00 yen | 5.00 yen | 10.00 yen |
| Revised dividend | - | 2.00 yen | 7.00 yen |
| Performance | 5.00 yen | - | - |
| Previous period performance (fiscal year ended March 31, 2008) | - | 10.00 yen | 10.00 yen |
(2) Reasons for the revision
Our basic policy is to consider financial affairs and management environments from a comprehensive standpoint and to maintain stable profit sharing on an ongoing basis. It is nonetheless truly regrettable to announce on this occasion that, due to the significant business downturn as a result of the worst economic circumstances we have ever faced, we have been forced to revise downwards the consolidated business results for the fiscal year ended March 31, 2009 and have subsequently concluded to pay a year-end dividend of 2 yen per share.
3. Reduced remuneration paid to Directors and Executive Officers
Due to the business downturn, we have reduced the remuneration paid to our directors and executive officers for the time being from April 1 this year as detailed below:
| Representative Director, President and Chief Executive Officer: | 30% |
| Directors, Senior Managing Executive Officers and Managing Executive Officers: | 15% |
| Independent Directors: | 10% |
| Senior Managing Executive Officers and Managing Executive Officers: | 10% |
| Executive Officers: | 5% |
The remuneration paid to our auditors has also been reduced, for the time being, by 5% since April 1 this year in response to the proposal made by the board of auditors.
| Company Name: | Minebea Co., Ltd. |
|---|---|
| Representative: | Yoshihisa Kainuma Representative Director, President and Chief Executive Officer (Code No. 6479 TSE Div. No. 1) |
| Contact Person: | Sakae Yashiro Senior Managing Executive Officer Deputy Chief of Administration Headquarters (TEL: 81-3-5434-8611) |
Product information, contact and other context are subject to change without prior notice.
