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Latest Update : Aug.6, 2014

Back to Financial Results (FY3/2015)

Investor Conference Call for 1Q FY 3/2015 held on July 31, 2014

Table of Contents

First quarter net sales for the Machined Components business segment rose 0.2% from the previous quarter to total 36.6 billion yen. Operating income was up 0.6% from the previous quarter to reach 9.6 billion yen and the operating margin was 26.1%, up 0.1 percentage points. Net sales and operating income of ball bearings and pivot assemblies increased, but those of rod-ends and fasteners decreased, offsetting most of the increases. Compared to the same period last year, however, due mainly to continued strong demand growth in ball bearings, the segment net sales increased 7.4% and operating income jumped 38.7%.
Sales of ball bearings increased 2.0% from the previous quarter to total 20.7 billion yen. External shipment volume, buoyed by soaring demand, hit record highs in May and again in June. Demand surged mainly in China for a variety of different applications such as server fan motors, automobiles, office automation equipment and automated teller machines. We expect the external shipment volume to be high in the September quarter as well.
Sales and profits of rod-ends and fasteners declined from the previous quarter because U.S. government's defense budget cuts affected our U.S. subsidiary. We would like to work on improving this business unit's top and bottom lines. Our aim is to realize synergy among the four global production locations as demand from the civil aviation industry continues to increase steadily.
Sales of HDD pivot assemblies rose 3.4% from the previous quarter to hit 9.2 billion yen. We were able to earn steady profits due to our high market share as the HDD market was a bit stronger than we had expected.

5page (total 15pages)

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