Results Summary
Latest Update : May 17, 2016
Back to Financial Results (FY3/2016)
Overview for FY 3/2016 (From April 1, 2015 to March 31, 2016)
The weak yen, high share prices, and low oil prices were initially expected to fuel Japan's economy during the year under review. However spring-to-summer consumer spending, capital expenditures, and exports remained stagnant as a second-half slowdown in China and other emerging economies, falling resource prices, and a rising yen cast a dark shadow over the economy. The U.S. economy continued to grow mainly in the household sector due to the robust performance of the service industry and a better job market. Despite declining exports to non-EU countries, local consumption kept the European economy moving forward on a moderate upward trajectory. Excess production capacity and slowing investment in real estate development in China has gradually unveiled a picture of economic uncertainty in Asia. Although ASEAN countries, whose economies rely largely on China, didn't see exports to China grow, they enjoyed moderate economic recoveries due partly to public investments, measures to spur consumption, and other initiatives.
Working against this backdrop, the Minebea Group has been concentrating on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to improve profitability even further.
As a result, net sales soared by 109,138 million yen (21.8%) year on year to total 609,814 million yen, reaching 600 billion yen for the first time ever. Operating income fell 8,663 million yen (-14.4%) year on year to total 51,438 million yen while ordinary income was down 13,479 million yen (-22.4%) year on year at 46,661 million yen. Net income attributable to owners of the parent decreased 3,501 million yen (-8.8%) year on year to reach 36,386 million yen.
Performance by Segment for FY 3/2016 (From April 1, 2015 to March 31, 2016)
Commencing with the fiscal year under review, Minebea has made some organizational changes, including the integration of our in-house manufacturing division with the electronic device and component manufacturing headquarters. Along with these changes come changes to the segment information.
Segment information for the last fiscal year was prepared using the new segment classification implemented with the structural reorganization.
Machined Components Business Segment
Products in our Machined components business segment include our mainstay product, ball bearings, 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. Strong demand in all major markets fueled both sales and profits of ball bearings. Sales 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 fiscal year under review up 8,026 million yen (5.2%) year on year to total 163,811 million yen. Operating income also jumped 1,132 million yen (2.9%) year on year to total 40,854 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (LED backlights for LCDs, 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 enjoy a technological edge when it comes to making thinner products and the fact that they have more components enables them to command a higher price.
Although sales increased substantially, they fell short of our initial forecast. This decline was 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, resulting in a year-on-year drop in income. Both sales and profits 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 slightly declined due to a shrinking HDD market while stepping motors saw both sales and profits grow mainly in the office automation equipment and automobile markets.
As a result, net sales for the fiscal year under review increased sharply by 100,743 million yen (29.2%) year on year to total 445,467 million yen while operating income dropped 8,411 million yen (-27.4%) year on year to total 22,336 million yen.
Other Business Segment
Net sales in our Other business segment, which includes machines produced in-house, were up 370 million yen (222.5%) year-on-year to total 536 million yen. The segment posted an operating loss of 124 million yen, adding up to a year-on-year loss of 96 million yen.
In addition to the figures noted above, 11,627 million yen in corporate expenses, etc. not belonging to any particular segment has been recorded as adjustments. Adjustments for the previous fiscal year amounted to 10,340 million yen on a consolidated basis.
Analysis of Financial Position for FY 3/2016 (From April 1, 2015 to March 31, 2016)
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 with an eye to boosting our financial performance.
Total assets at the end of the consolidated fiscal year under review amounted to 459,427 million yen, down 30,616 million yen over what it was at the end of last fiscal year. The main reasons for this drop include a reduction in tangible fixed assets along with decreases in notes and accounts receivable which went hand in hand with lower fourth quarter sales.
Total liabilities at the end of the consolidated fiscal year under review amounted to 221,454 million yen, with a year on year decrease of 34,909 million yen. This drop was primarily due to a decline in notes and accounts payable as a result of fewer purchases.
Net assets amounting to 237,973 million yen worked to increase the equity ratio by 4.1 percentage points year on year, to 50.2%.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the consolidated fiscal year under review totaled 29,141 million yen, down 6,996 million yen from what it was at the end of the previous fiscal year.
Cash flows from various business activities during the consolidated fiscal year under review and relevant factors were as follows:
Operating activities: Net cash provided by operating activities totaled 43,582 million yen. That amounts to a 16,282 million yen year-on-year drop due to an increase in inventories and a decrease in notes and accounts payable despite cash inflows from income before income taxes, depreciation and amortization costs, as well as a decrease in notes and accounts receivable.
Investing activities: Net cash used for investment activities rose 9,316 million yen year on year, to total 44,642 million yen as a result of aggressive capital investments needed to expand operations.
Financing activities: Net cash from financing activities declined 15,427 million yen year on year due to a cash outflow of 4,200 million yen for dividend payments, etc.
The content of this page is based on information included in the "Brief Report for Fiscal Year Ended March 2016 (From April 1, 2015 to March 31, 2016)" announced on May 10, 2016.
