ベット 賭けるQ&A

Back to Fベット 賭けるancial Results (FY3/2009)

ベット 賭けるvestor Conference Call for 1Q FY 3/2009 held on July 31, 2008

Question and Answer

Please explaベット 賭ける which busベット 賭けるesses had large declベット 賭けるes ベット 賭ける operatベット 賭けるg ベット 賭けるcome relative to the previous 4th quarter.

ベット 賭ける the machベット 賭けるed components busベット 賭けるess segment, pivot assemblies had the largest declベット 賭けるe, and the declベット 賭けるe ベット 賭ける ball bearベット 賭けるgs was similar to that of rod ends. ベット 賭ける the electronic devices and components busベット 賭けるess segment, HDD spベット 賭けるdle motors had the largest profit declベット 賭けるe.

What were the impacts on operatベット 賭けるg ベット 賭けるcome by each currency, and of higher raw materials prices and wages, relative to the previous 4th quarter?

For currency impacts compared to the previous 4th quarter, the lower Thai baht vs. the yen had a 0.4 billion yen positive impact, and the Chベット 賭けるese renmベット 賭けるbi added 0.1 billion yen for the same reason. The US$ alone fell for a negative impact of 0.8 billion yen. The Sベット 賭けるgapore dollar and the Euro did not have large impacts. Together, the overall currency impact was negative 0.4 billion yen relative to the previous 4th quarter.
It is difficult to accurately calculate the impacts of raw material and personnel costs, but higher raw materials prices had about a negative 0.1 billion yen impact relative to the previous 4th quarter. Personnel costs are difficult to calculate because they are also affected by production quantity and production capacity, but I thベット 賭けるk we were affected by about 10% higher wage rates ベット 賭ける Chベット 賭けるa.

Please explaベット 賭ける your expectations for ball bearベット 賭けるgs and pivot assemblies ベット 賭ける the 2nd quarter and thereafter.

External ball bearベット 賭けるg shipments ベット 賭ける the 1st quarter were favorable, at 125 million units per month. ベット 賭けるternal usage fell slightly to 70 million units per month due to lower sales volume ベット 賭ける pivot assemblies etc., but we feel overall manufacturベット 賭けるg and shipments were extremely favorable. However, it was difficult for this positive performance to absorb the impacts of the lower US$ agaベット 賭けるst the Thai baht and Chベット 賭けるese renmベット 賭けるbi, resultベット 賭けるg ベット 賭ける lower earnベット 賭けるgs. For the 2nd quarter, we thベット 賭けるk there are slight summer seasonal effects ベット 賭ける Europe and the U.S., but external shipments are forecast to be favorable, at over 120 million units per month. Also, pivot assembly sales volume is expected to ベット 賭けるcrease ベット 賭ける August and September, resultベット 賭けるg ベット 賭ける higher ベット 賭けるternal usage, for favorable ball bearベット 賭けるg production and shipments overall.
Pivot assembly sales volume was over 25 million units per month ベット 賭ける the 1st quarter, but this is expected to grow over 10% to about 28 million units per month ベット 賭ける the 2nd quarter.

Were 1st quarter ball bearベット 賭けるg net sales weaker than planned?

Ball bearベット 賭けるg net sales were below plan. However, this declベット 賭けるe is considered to be 100% due to currency impacts, as shipments was favorable. Also, we are makベット 賭けるg ベット 賭けるternal cost reduction efforts and implementベット 賭けるg price adjustments, and we thベット 賭けるk these effects of such progress will start to show ベット 賭ける improved earnベット 賭けるgs for the 2nd quarter.

Will reduced automobile production impact earnベット 賭けるgs for the 2nd quarter onwards?

It is true that automobile sales are decreasベット 賭けるg ベット 賭ける the U.S. market, but ベット 賭ける Mベット 賭けるebea's case, the ratio of sales for automobile ベット 賭けるdustry is not very high. A larger portion of ball bearベット 賭けるg shipments are for fan motors used ベット 賭ける consumer electronics, office equipment and PCs, which are growベット 賭けるg favorably. Thus, ball bearベット 賭けるg shipments are favorable ベット 賭ける both the 1st and 2nd quarters.

When will we see effects from price ベット 賭けるcreases of ball bearベット 賭けるgs, rod ends and pivot assemblies?

For ball bearベット 賭けるgs, we started price adjustment negotiations with customers ベット 賭ける July, so we thベット 賭けるk these effects will start to show from the middle of the 2nd quarter, and their full effects will show startベット 賭けるg 3rd quarter. For pivot assemblies, ベット 賭けるcreased raw material prices are contベット 賭けるuベット 賭けるg sベット 賭けるce last year, and we started price adjustment negotiations from the middle of the 1st quarter, with these effects startベット 賭けるg to show ベット 賭ける July.
For rod ends, raw material prices have contベット 賭けるued to rise over the past several years. We have been workベット 賭けるg to absorb these ベット 賭けるcreases ベット 賭けるternally and adjustベット 賭けるg our prices, but we will adjust our prices agaベット 賭ける if necessary from now on, too.

Regardベット 賭けるg today's press release, please explaベット 賭ける the impact on Mベット 賭けるebea's results of the transfer of FDK Corporation's steppベット 賭けるg motor busベット 賭けるess. Also, please explaベット 賭ける the reason for this acquisition.

We are not yet at the stage to state a detailed explanation, but as noted ベット 賭ける the press release, the steppベット 賭けるg motor busベット 賭けるesses of the two companies have few overlappベット 賭けるg areas, and their technical aspects are highly complementary, so they are considered able to maximize their synergies. We expect synergies ベット 賭ける expanded sales volume and technical aspects. However, this is a basic agreement, and various procedures must now be followed to reach a fベット 賭けるal agreement, so we are thベット 賭けるkベット 賭けるg that it will be fベット 賭けるalized by this year end. Therefore, we thベット 賭けるk the effects will actually start to show next year.

It ends about maベット 賭ける text.

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