Results Summary
Latest Update : Feb.9, 2016
Back to Financial Results (FY3/2016)
Overview for the 3Q of FY 3/2016 (From April 1, 2015 to December 31, 2015)
The Japanese economy was initially expected to undergo high growth during the first nine months of the fiscal year (April 1, 2015 to December 31, 2015) backed the weak yen, high share prices and low oil prices. However, consumer spending, capital expenditures and exports were stagnant during the period from spring to summer, and a growing sense of uncertainty was created in the second half of the fiscal year by the slowdown of emerging economies centered on China and the significant decline in resource prices. The U.S. economy continued to grow mainly in the household sector. This was underpinned by robust performance in the service industry and improvement in the employment environment.
Fueled by local consumption, the European economy remained on a moderate upward trajectory despite declining exports to non-EU countries. Furthermore, a picture of economic uncertainty came into focus in Asia as the excessive equipment and slowing of real estate development investment in China gradually became evident. Despite the fact that ASEAN countries, whose economies rely largely on China, didn't see exports to China grow, they enjoyed moderate economic
recoveries as exports to the U.S. and Europe as well as domestic demand picked up.
Working against this backdrop, the Minebea Group has been focusing on creating high-value-added products, developing new technologies, enhancing its marketing approach, and cutting costs to boost profitability further.
As a result, net sales increased by 112,254 million yen (31.0%) year on year to reach the record level of 474,215 million yen. Operating income fell 941 million yen (-2.1%) year on year to total 42,901 million yen, and ordinary income was down 4,789 million yen (-11.1%) year on year at 38,446 million yen. Quarterly net income attributable to owners of the parent decreased 1,396 million yen (-4.5%) year on year to reach 29,584 million yen.
Performance by Segment for the 3Q of FY 3/2016 (From April 1, 2015 to December 31, 2015)
Commencing with the 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 nine-month period 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 anchor product, 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 in all major markets fueled both sales and profits of ball bearings. Sales and profits of aircraft rod-end bearings rose on the wings of soaring sales in the civil aviation market where demand was particularly strong for energy-efficient planes. Pivot assembly sales dipped slightly in the face of the shrinking HDD market, but improved production efficiency drove operating income up.
All these factors combined brought net sales for the first nine-month period up 10,140 million yen (8.9%) year on year to total 124,013 million yen. Operating income also jumped 1,363 million yen (4.6%) year on year to total 30,781 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. Surging demand buoyed sales of LED backlights for LCDs as market preferences shifted to high-end smartphones. Minebea's LED backlights for LCDs have the technological edge when it comes to making thinner products and with more components commanded a higher price. However, although sales increased substantially year on year, they fell short of our initial forecasts due to the unexpectedly large gap between the volume initially requested by major customers and the volume actually sold in the second half of the fiscal year. This resulted in a decline in income year on year. Sales of measuring components also rose substantially due partly to the acquisition of the Sartorius Mechatronics T&H Group in the previous fiscal year. HDD spindle motor sales increased despite a continually shrinking HDD market while sales of stepping motors and other motors grew mainly in the office automation equipment and automobile markets.
All these factors combined brought net sales for the first nine-month period up 101,849 million yen (41.1%) year on year to total 349,814 million yen. Operating income was down 2,190 million yen (-9.9%) year on year, to 19,967 million yen.
Other Business Segment
First nine-month period net sales in our Other business segment, which includes machines produced in-house, were up 265 million yen (217.2%) year-on-year to total 387 million yen. The segment posted an operating loss of 35 million yen, a deterioration of 136 million yen year on year.
In addition to the figures noted above, 7,811 million yen in corporate expenses, etc. not belonging to any particular segment has been recorded as adjustments. Adjustments for the first nine-month period of last fiscal year amounted to 7,834 million yen.
Analysis of Financial Position for the 3Q of FY 3/2016 (From April 1, 2015 to December 31, 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. While we aim for efficient asset management and reducing capital expenditure along with interest-bearing debts, over the past few years we have been making aggressive capital investments to enhance our business performance.
Total assets at the end of the third quarter amounted to 530,055 million yen, up 40,012 million yen compared to the end of the previous fiscal year. The main reasons for this uptick include increases in inventories as well as notes and accounts receivable. Total liabilities amounted to 284,665 million yen, up 28,302 million yen over what it was at the end of the previous fiscal year. This is primarily due to increases in short-term loans as well as notes and accounts payable.
Net assets totaled 245,390 million yen, up 11,711 million yen over what it was at the end of the previous fiscal year. The equity ratio dropped 1.2 percentage points below what it was at the end of the last fiscal year to 44.9%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the third quarter was 30,438 million yen, down 5,698 million yen from what it was at the end of the previous fiscal year and down 6,592 million yen on a year-on-year basis.
Cash flows from various business activities for the first three quarters and other relevant factors are as follows: Net cash provided by operating activities amounted to 16,697 million yen, down 15,796 million yen year on year due to increases in income before income taxes, 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 increased 19,635 million yen year on year to total 36,513 million yen due primarily to the acquisition of tangible fixed assets and intangible fixed assets, along with transfers to time deposits. Net cash from financing activities was up 24,774 million yen year on year due to a cash inflow of 14,968 million yen resulting from short-term loans and dividend payments, etc.
The content of this page is based on information included in the "Brief Report for Third Quarter of Fiscal Year Ending March 2016 (From April 1, 2015 to December 31, 2015)" announced on February 3, 2016.
