Results Summary
Latest Update : Aug.14, 2014
Back to Financial Results (FY3/2015)
Overview for the 1Q of FY 3/2015 (From April 1, 2014 to June 30, 2014)
The Japanese economy continued to improve during the first quarter (April 1, 2014 to June 30, 2014). Major government initiatives led to a virtuous economic cycle while increased corporate earnings boosted capital investments and employment despite some negative impact from the consumption tax increase. In the U.S., the economy remained on a gradual recovery track fueled by increasing industrial production and employment as well as strong consumer spending although new housing construction remained relatively downbeat. The European economy generally stayed on track to recovery. Although Germany and the U.K. watched their economies pick up steam, the sovereign debt and Ukrainian political crises have cast a dark shadow over the economic horizon. In Asia, economic growth slowed down as China's housing market lost momentum and capital expenditures declined. All ASEAN countries enjoyed moderate economic recoveries with the exception of Thailand whose economy remained stagnant due to political upheaval.
Working against this backdrop, the Minebea Group has been focusing on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost the profitability further.
As a result, net sales increased by 14,214 million yen (16.7%) year on year to reach 99,531 million yen. Operating income rose 6,986 million yen (197.5%) year on year to total 10,524 million yen, and ordinary income was up 7,405 million yen (241.3%) year on year at 10,473 million yen. Net income for the quarter also increased 3,979 million yen (139.5%) year on year to reach 6,831 million yen.
Performance by Segment for the 1Q of FY 3/2015 (From April 1, 2014 to June 30, 2014)
Machined Components Business Segment
Products in our Machined components business segment include our mainstay, ball bearings, in addition to mechanical components such as rod-end bearings used primarily in aircraft and hard disk drive (HDD) pivot assemblies, etc., as well as fasteners for automobiles and aircraft. Growing demand fueled sales of ball bearings in every market. Sales to the automobile industry were especially robust, with sales volumes hitting record highs in May as well as June. This jump was triggered by increased demand for automobiles equipped with energy-saving and safety features. Sales of rod-end bearings used in aircraft were also upbeat. Pivot assembly sales were driven up primarily by the growth of high-end products as the market for pivot assemblies used in PCs showed a stronger-than-expected upturn.
In the end, net sales for the quarter increased 2,510 million yen (7.4%) year on year to total 36,602 million yen. Operating income was also up 2,665 million yen (38.7%) year on year, totaling out at 9,554 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (liquid crystal display backlights and measuring components, etc.), HDD spindle motors, information motors (stepping motors, DC brushless motors, DC brush motors, and fan motors), precision motors, and special devices. Sales of liquid crystal display (LCD) backlights soared. This increase was due to the surging demand for Minebea products offering a technological advantage in thin smartphones amid the current market shift to high-end products. Sales of HDD spindle motors and information motors also rose. Performance for the information motor business, in particular, improved with growing sales to the office automation and automobile markets as well as reduced costs resulting from the transfer of manufacturing operations to our Cambodian plant.
All these factors combined brought net sales for the quarter up 11,705 million yen (23.0%) year on year to total 62,687 million yen. Operating income substantially increased by 3,311 million yen year on year to reach 2,984 million yen.
Other Business Segment
First quarter net sales for our Other business segment, which includes dies and parts produced in-house, totaled 241 million yen, down 1 million yen (-0.4%) year on year. Operating income rose 274 million yen year on year to total 289 million yen.
In addition to the figures noted above, 2,303 million yen in corporate expenses, etc. not belonging to any particular segment has been recorded as adjustments. Adjustments for the first quarter of last fiscal year amounted to 3,040 million yen.
Analysis of Financial Position for the 1Q of FY 3/2015 (From April 1, 2014 to June 30, 2014)
Assets, Liabilities, and Net Assets
The Minebea Group sees strengthening its financial standing as a top priority and is taking various steps toward that end, including reducing total assets and interest-bearing debts as well as cutting back capital investments. Over the past few years, however, we have been making aggressive capital investments to enhance our business performance.
Total assets at the end of the current first quarter amounted to 389,402 million yen, up 8,124 million yen over what it was at the end of the previous fiscal year. The main reasons for this uptick are increases in notes and accounts receivable as well as inventories. Total liabilities amounted to 223,167 million yen, up 5,353 million yen over what it was at the end of the previous fiscal year. This jump was primarily due to increases in notes and accounts payable. Net assets totaled 166,235 million yen for an increase of 2,772 million yen over what it was at the end of the previous fiscal year. Equity ratio declined 0.1 percentage points below what it was at the end of the last fiscal year to reach 41.3%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the first quarter was 27,027 million yen, down 2,004 million yen from what it was at the end of the previous fiscal year but up 7,690 million yen on a year-on-year basis.
Cash flows from various business activities during the first quarter and relevant factors are as follows:
Net cash provided by operating activities amounted to 8,222 million yen, up 2,908 million yen year on year due to increases in income before income taxes and minority interests, notes and accounts receivable, notes and accounts payable, as well as inventories along with depreciation and amortization costs, etc. Net cash used for investment activities dropped 3,049 million yen year on year, to total 4,092 million yen due to the acquisition of tangible fixed assets as well as the sale of shares in affiliates. Net cash used for financing activities declined 2,035 million yen year on year due to a cash outflow of 5,852 million yen for the repayment of short-term loans as well as a dividend payment, etc.
The content of this page is based on information included in the "Consolidated Financial Information for the First Quarter of Fiscal Year Ending March 2015 (From April 1, 2014 to June 30, 2014)" announced on July 31, 2014.
