Results Summary
Latest Update : Aug.11, 2015
Back to Financial Results (FY3/2016)
Overview for the 1Q of FY 3/2016 (From April 1, 2015 to June 30, 2015)
The global economy overall continued to bounce back during the first quarter under review (April 1, 2015 to June 30, 2015). The U.S. saw employment conditions improve while consumer spending remained upbeat despite the appreciation of the U.S. dollar and low crude oil prices which put a damper on some industries and local economies. Despite a rising tide of exports that were buoyed by the weak euro, the economic recovery in Europe remained modest due in part to concerns over the Ukrainian political crisis and Greek sovereign debt crisis. The growth of many Asian economies, like China, slowed down while robust corporate earnings kept the Japanese economy on track to gradual recovery despite a temporary lag in exports, production, and consumer spending.
Working against this backdrop, the Minebea Group has been focusing on cutting costs, creating high-value-added products, developing new technologies, and honing its marketing approach in order to boost profitability further.
As a result, net sales increased by 27,860 million yen (28.0%) year on year to reach 127,391 million yen. Operating income rose 1,988 million yen (18.9%) year on year to total 12,512 million yen, and ordinary income was up 2,399 million yen (22.9%) year on year at 12,872 million yen. Net income attributable to owners of the parent also increased 3,227 million yen (47.2%) year on year to reach 10,058 million yen.
Performance by Segment for the 1Q of FY 3/2016 (From April 1, 2015 to June 30, 2015)
Commencing with this current first quarter consolidated accounting period, Minebea has made some organizational changes, including incorporating its in-house manufacturing division into the Electronic devices and components manufacturing headquarters. Due to these changes, the segment information has also been changed.
Segment information for last fiscal year's first quarter is disclosed using the new classification for reportable business segments implemented subsequent to the structural reorganization.
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, our anchor product line, in every market. Sales were particularly robust in the automobile market where demand for energy-efficient models equipped with safety devices soared. Sales of rod-end bearings used in aircraft were also upbeat. Pivot assembly sales declined due to the negative impact of inventory adjustments in the HDD market.
In the end, net sales for the first quarter were up 4,372 million yen (11.9%) year on year to total 40,974 million yen. Operating income was also up 402 million yen (4.2%) year on year, totaling out at 9,956 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (LED backlights for LCDs and measuring components, etc.), HDD spindle motors, stepping motors, DC motors, fan motors, precision motors, and special devices. Sales of LED backlights for LCDs soared this quarter. This increase was due to the ongoing surge in demand for Minebea products offering a technological advantage in thin smartphones amid the current market shift to high-end products. Sales of measuring components also rose substantially due partly to the acquisition of the Sartorius Mechatronics T&H Group in the previous fiscal year. While inventory adjustments in the HDD market put a dent in HDD spindle motor sales, sales of other motors including stepping motors increased.
All these factors combined brought net sales for the quarter up 23,419 million yen (37.2%) year on year to total 86,311 million yen. Operating income soared by 2,370 million yen (73.2%) year on year to reach 5,608 million yen.
Other Business Segment
Net sales for the first quarter in our Other business segment, which includes machines produced in-house, were up 69 million yen (189.7%) year on year to total 105 million yen. The segment posted an operating loss of 41 million yen, bringing operating income down 107 million yen year on year.
In addition to the figures noted above, 3,010 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 2,334 million yen.
Analysis of Financial Position for the 1Q of FY 3/2016 (From April 1, 2015 to June 30, 2015)
Assets, Liabilities, and Net Assets
The Minebea Group sees "strengthening our financial position" as a top priority and is taking various steps toward that end. We have been reducing total assets and interest-bearing debts as well as cutting back on 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 first quarter amounted to 490,517 million yen, up 474 million yen compared to the end of the previous fiscal year. Total liabilities amounted to 247,306 million yen, down 9,057 million yen below what it was at the end of the previous fiscal year. This decline was primarily due to decreases in notes and accounts payable. Net assets totaled 234,210 million yen, up 9,531 million yen over what it was at the end of the previous fiscal year while the equity ratio rose 1.9 percentage points above what it was at the end of the last fiscal year to reach 48.0%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the first quarter was 29,302 million yen, down 6,835 million yen from what it was at the end of the previous fiscal year but up 2,275 million yen on a year-on-year basis.
Cash flows from various business activities during the current first quarter and relevant factors are as follows:
Net cash provided by operating activities amounted to 10,606 million yen, up 2,384 million yen year on year due to income before income taxes, decreases in notes and accounts receivable, notes and accounts payable, and increase in inventories, depreciation and amortization costs, etc. Net cash used for investment activities increased 9,373 million yen year on year, to total 13,465 million yen due primarily to the acquisition of tangible fixed assets. Net cash used for financing activities declined 1,701 million yen year on year due to a cash outflow of 4,151 million yen for the repayment of short-term loans as well as dividend payments, etc.
The content of this page is based on information included in the "Brief Report for First Quarter of Fiscal Year Ending March 2016 (From April 1, 2015 to June 30, 2015)" announced on July 31, 2015.
