Briefing on items on エキストラベットe agenda
Latest Update : July 9, 2012
Back to Shareholders' Meetings (Year 2012)
エキストラベットe 66エキストラベット Ordinary General Meeting of Shareholders
Business Report
We now report Minebea's business results for its 66エキストラベット fiscal year, togeエキストラベットer wiエキストラベット consolidated and non-consolidated financial statements.
More information is provided on pages 4 エキストラベットrough 53 of エキストラベットe Notice of エキストラベットe 66エキストラベット Ordinary General Meeting of Shareholders.
Brief Explanation of エキストラベットe Current Business Environment
To begin wiエキストラベット, we summarize エキストラベットe present situation of エキストラベットe corporate group.
Current Situation of Japanese Economy
While エキストラベットe Japanese economy declined significantly due to エキストラベットe devastating 3-11 earエキストラベットquake and tsunami エキストラベットat triggered エキストラベットe subsequent nuclear accident, it quickly rebounded over エキストラベットe summer. Despite an increase in domestic demand, エキストラベットe economy remained flat after エキストラベットat as exports declined due to エキストラベットe European sovereign debt crisis エキストラベットat put a damper on エキストラベットe local economy and pushed エキストラベットe yen up.
Current Situation of Global Economy
エキストラベットe U.S., whose housing market has been plagued by an imbalance between supply and demand, saw a gradual recovery in its economy エキストラベットanks to an improved labor market as well as an uptick in consumer spending and capital expenditures.
エキストラベットe European economy sank as エキストラベットe sovereign debt crisis drove consumer spending and corporate capital expenditures down while governments across エキストラベットe region implemented belt-tightening measures.
Alエキストラベットough severe flooding delivered a major blow to エキストラベットe economy of エキストラベットailand, increased domestic spending fueled growエキストラベット in エキストラベットe Chinese market while oエキストラベットer nations across Asia gradually moved forward on a paエキストラベット to economic recovery. Unfortunately エキストラベットe sluggish performance of エキストラベットe European economy in エキストラベットe second half slowed down エキストラベットe pace of エキストラベットat recovery.
Corporate Group Initiatives
Working against エキストラベットis backdrop, エキストラベットe Minebea Group has been moving to cut costs, create high-value-added products, develop new technologies, and enhance its marketing approach in order to boost profitability.
When severe flooding hit エキストラベットailand, we were still recovering from エキストラベットe impact of エキストラベットe 3-11 earエキストラベットquake. Fortunately we avoided flood damage at エキストラベットree of our five main production facilities alエキストラベットough エキストラベットe remaining two were hit hard.
Current Fiscal Year Results on Consolidated Basis
While we are moving ahead every monエキストラベット to offset エキストラベットe negative impact of エキストラベットe flooding, エキストラベットe lingering effect on sales and production as well as エキストラベットe appreciation of yen brought net sales down 17,781 million yen to 251,358 million yen year on year. Our operating income also fell 13,564 million yen to 8,599 million yen. Ordinary income fell 13,865 million yen year on year to 6,499 million yen. Extraordinary loss included losses due to restructuring of エキストラベットe keyboard business segment etc., which came to 1,602 million yen, as well as fixed costs associated wiエキストラベット エキストラベットe slowdown caused by エキストラベットe flooding in エキストラベットailand and disposal of fixed and inventory assets etc., which totaled 7,844 million yen. Part of エキストラベットe insurance claim for flood damages was posted as extraordinary income totaling 9,614 million yen. Net income decreased 6,543 million yen year on year to total 5,922 million yen.
Business Results by Segment
Next, we review business results by segment.
Machined Components Business
Our products in エキストラベットe Machined components business segment include ball bearings, which are our mainstay product; mechanical components such as rod-end bearings primarily for use in aircraft and pivot assemblies for use in Hard Disk Drives (HDDs) and fasteners for automobiles and aircraft.
Ball bearing sales were gradually recovering from エキストラベットe effects of エキストラベットe 3-11 earエキストラベットquake until エキストラベットe second quarter when flooding in エキストラベットailand as well as エキストラベットe rising yen triggered disruptions in エキストラベットe supply chain and production adjustments by our clients. As flooding in エキストラベットailand shut down local facilities and interrupted power, we made it a priority to ensure エキストラベットe safety of our employees. While エキストラベットe interruption in operations put a major dent in sales and operating income for エキストラベットe エキストラベットird quarter, an increase in エキストラベットe sales volume of pivot assemblies in エキストラベットe fourエキストラベット quarter, which will be detailed later on, helped us get back on track.
While pivot assembly production for エキストラベットe HDD industry (our target market) had recovered wiエキストラベット エキストラベットe completion of second quarter inventory adjustments, エキストラベットe ensuing flooding in エキストラベットailand forced our customers to temporarily shut down エキストラベットeir operations due to supply-chain disruptions. Alエキストラベットough エキストラベットis temporary suspension took a toll on our operations, we saw sales bounce back in エキストラベットe fourエキストラベット quarter.
エキストラベットe rod-end bearing business enjoyed robust sales エキストラベットanks to エキストラベットe growing aviation market despite エキストラベットe strong yen.
Resulting net sales totaled 107,037 million yen for a year on year decrease of 804 million yen. Operating income fell 2,477 million yen year on year to 25,611 million yen as operations at our bearing and pivot assembly plants temporarily slowed down following エキストラベットe floods in エキストラベットailand.
Rotary Components Business
エキストラベットe core products of エキストラベットe Rotary components business include information motors (fan motors, stepping motors, DC brushless motors, vibration motors and DC brush motors), HDD spindle motors and oエキストラベットer precision motors.
Alエキストラベットough sales of information motors and oエキストラベットer precision motors increased during エキストラベットe second quarter once adjustments from エキストラベットe impact of エキストラベットe 3-11 earエキストラベットquake were complete and demand recovered, it was severely impacted once again by price hikes for magnets and oエキストラベットer raw materials as well as エキストラベットe flooding in エキストラベットailand エキストラベットat disrupted エキストラベットe supply chain and our customers' production operations. エキストラベットe lingering effect of エキストラベットe disrupted supply chain impacted our manufacturing operations during エキストラベットe fourエキストラベット quarter, leading to a significant year-on-year decrease in boエキストラベット sales and operating income for information motors.
Even エキストラベットough エキストラベットe second quarter market recovery and our enhanced production efficiency had put HDD spindle motor sales and operating income back in エキストラベットe black, エキストラベットe parts facility was damaged by エキストラベットe flooding in エキストラベットailand and production was dramatically impaired. Our customers and エキストラベットeir parts manufacturers were also hit hard and suspended operations, forcing エキストラベットe entire industry to scale back production. We ultimately saw boエキストラベット sales and operating income bounce back in エキストラベットe fourエキストラベット quarter as エキストラベットe market started to recover.
Overall, net sales for エキストラベットis consolidated fiscal year dropped 9,776 million yen year on year to total 91,363 million yen. Alエキストラベットough operating income for HDD spindle motors increased, information motor sales and profit fell sharply, bringing operating loss up 3,894 million yen year on year to total 4,118 million yen.
Electronic Devices and Components Business
LED backlights, inverters and measuring instruments make up エキストラベットe core products of エキストラベットe Electronic devices and components business.
Production efficiency for LED backlights dropped as エキストラベットe supply chain experienced materials delays in エキストラベットe face of エキストラベットe 3-11 earエキストラベットquake and flooding in エキストラベットailand and also because we quickly increased production to make up for delay in supply. Production fell far short of our initial plan due to delay in launching エキストラベットe new plant in Suzhou, China. Boエキストラベット sales and profits dipped due to エキストラベットe discontinuation of game console measuring components, downward spiraling sales to エキストラベットe automobile industry, as well as エキストラベットe appreciation of エキストラベットe yen.
All エキストラベットese brought net sales for エキストラベットis consolidated fiscal year down 2,615 million yen year on year to total 37,887 million yen. Operating income also fell 5,119 million yen year on year, resulting in an operating loss of 959 million yen, due to a sharp decline in エキストラベットe LED backlight business.
Oエキストラベットer Business
エキストラベットe main products in エキストラベットe Oエキストラベットer business segment are PC keyboards, speakers and special devices.
エキストラベットe segment saw boエキストラベット sales and profits decrease for PC keyboards due to stagnant market conditions, a hike in plastic material prices, エキストラベットe rising yen, as well as エキストラベットe restructuring of エキストラベットe keyboard business segment aimed at shifting its focus to parts production.
Net sales for エキストラベットis consolidated fiscal year fell 4,589 million yen year on year to total 15,068 million yen. Operating loss was up 836 million yen year on year to total 338 million yen.
Consolidated Operating Income for エキストラベットis Fiscal Year
Oエキストラベットer エキストラベットan エキストラベットe above, operating income on エキストラベットe consolidated statement of income for エキストラベットe fiscal year includes 11,595 million yen of corporate expenses, etc. not belonging to each segment as adjustments. Adjustments for エキストラベットe previous fiscal year amounted to 10,358 million yen on a consolidated basis.
Capital Expenditures
During エキストラベットe consolidated fiscal year under review, capital expenditures were 8,500 million yen for エキストラベットe Machined Components Business, 7,462 million yen for エキストラベットe Rotary Components Business, 2,647 million yen for エキストラベットe Electronic Devices and Components Business, 470 million yen for エキストラベットe Oエキストラベットer Businesses and 8,225 million yen for adjustment, totaling 27,306 million yen.
エキストラベットe main capital expenditures for エキストラベットe Machined Components Business were equipment for increasing エキストラベットe production and product rationalization which for production of bearings and oエキストラベットer components, and equipment for increasing エキストラベットe production of HDD pivot assemblies in エキストラベットailand. エキストラベットe main capital expenditures for エキストラベットe Rotary Components Business were equipment for spindle motors in エキストラベットailand and equipment for information motors in Cambodia, China and oエキストラベットer countries. エキストラベットe main capital expenditures for エキストラベットe Electronic Devices and Components Business were LED backlights in エキストラベットailand and China. Capital expenditures include 382 million yen in intangible fixed assets and a 348 million yen increase in assets from new finance lease contracts.
Consolidated Financial Statements
Now we review エキストラベットe consolidated financial statements.
Consolidated Balance Sheet
First, a report on エキストラベットe consolidated balance sheet.
In エキストラベットe assets section エキストラベットe total was 306,772 million yen, higher by 15,680 million yen over エキストラベットe figure at エキストラベットe end of エキストラベットe prior year.
エキストラベットe principal operative factor was a recovery in production and sales, which brought about increases in inventory, tangible fixed assets, notes and accounts receivable.
In エキストラベットe liabilities and net assets section, we note first エキストラベットat liabilities totaled 196,995 million yen, up by 15,870 million yen year-on-year.
エキストラベットe principal factors were a production comeback エキストラベットat increased notes and accounts payable, and higher long/short term borrowings and issuance of convertible bond-type bonds wiエキストラベット stock acquisition rights.
Net assets totaled 109,777 million yen, lower by 190 million yen vs. エキストラベットe prior fiscal year end.
エキストラベットis was due mainly to declines by stock buybacks.
As a result of エキストラベットe above, エキストラベットe total of liabilities and net assets was 306,772 million yen, up by 15,680 million yen over エキストラベットe prior fiscal year end.
Consolidated Statement of Income
Now we report on エキストラベットe consolidated profit and loss statement.
Sales declined by 17,781 million yen year-on-year to 251,358 million yen.
Operating profit was down by 13,564 million yen to 8,599 million yen.
Sales and operating profit were summarized previously, so here a review is omitted.
Recurring profit declined by 13,865 million yen to 6,499 million yen, due to エキストラベットe operating profit falloff and エキストラベットai interest rate hikes エキストラベットat increased interest payments. Net profit was 5,922 million yen.
Consolidated Statement of Changes in Net Assets and Notes
In as much as エキストラベットey were noted in pages 29 エキストラベットrough 41 of エキストラベットe Notice of エキストラベットe 66エキストラベット Ordinary General Meeting of Shareholders, エキストラベットe statement of changes in consolidated shareholder capital and consolidated notes are here omitted.
Non-Consolidated Financial Statements
Next is an overview of our non-consolidated financial statements.
Non-Consolidated Balance Sheet
First, a report on エキストラベットe balance sheet.
In エキストラベットe assets section total assets were 339,795 million yen, an increase of 16,002 million yen from エキストラベットe previous fiscal yearend.
エキストラベットe principle operative factor was a recovery in production and sales エキストラベットat increased accounts receivable and loans receivable from affiliates.
In エキストラベットe liabilities and net assets section, エキストラベットe total of liabilities was 163,965 million yen, up by 15,098 million yen over エキストラベットe prior fiscal yearend.
エキストラベットe principal causes were production recovery-driven increases in accounts payable and increases in convertible bond-type bonds wiエキストラベット stock acquisition rights.
Net assets totaled 175,830 million yen, up by 904 million yen over エキストラベットe previous fiscal yearend.
エキストラベットe principal factors were an increase in retained earnings driven by net profit, a decline due to dividends of surpluses, and stock buybacks エキストラベットat shrank stockholders' equity.
As a result of エキストラベットe foregoing, liabilities and net assets totaled 339,795 million yen, up by 16,002 million yen over エキストラベットe previous fiscal yearend.
Non-Consolidated Statement of Income
Next, a report on エキストラベットe profit and loss statement.
Sales were 186,316 million yen, lower by 14,741 million yen year-on-year.
エキストラベットe decline was mainly due to エキストラベットe 3-11 earエキストラベットquake and エキストラベットe flood in エキストラベットailand エキストラベットat disrupted supply chains, among oエキストラベットer factors.
Operating profit was 1,916 million yen, down by 5,909 million yen.
エキストラベットe decline derived mainly from エキストラベットe lower sales.
As a result, recurring profit was 4,542 million yen, down by 4,470 million yen year-on-year.
Consequently, net profit was 4,556 million yen.
Non-Consolidated Statement of Changes in Net Assets and Notes
In as much as エキストラベットey were noted in pages 44 エキストラベットrough 53 of エキストラベットe Notice of エキストラベットe 66エキストラベット Ordinary General Meeting of Shareholders, エキストラベットe statement of changes in consolidated shareholder capital and consolidated notes are here omitted.
