Results Summary
Latest Update : Aug.5, 2016
Back to Financial Results (FY3/2017)
Overview for the 1Q of FY 3/2017 (From April 1, 2016 to June 30, 2016)
During the first quarter of the fiscal year (April 1, 2016 through June 30, 2016), the global economy showed signs of recovery from its worst downturn as the U.S. economy saw slow but gradual growth, despite lingering structural problems in emerging economies such as China's mounting bad debts as well as excess production capacity in some industries. Foreign exchange markets, on the other hand, fluctuated significantly with stock prices dropping sharply in the wake of Britain's decision to leave the European Union as a result of the referendum held in late June on top of rising geopolitical risks across the globe that have been heightened by volatile situations in Europe, Asia, and the Middle East. The economy is currently somewhat stable but still vulnerable to the adverse effects of declining consumer confidence and corporate earnings with growing downside risks remained in place.
Under such economic circumstances, the Minebea Group has been focusing on thoroughgoing cost cutting, development of high-value-added products and new technologies, and sales expansion initiatives aiming at boosting profitability further.
As a result, net sales were decreased to 120,288 million yen with the year-on-year decline of 7,103 million yen (-5.6%). Operating income fell 5,541 million yen (-44.3%) from the same period last year to total 6,971 million yen, while ordinary income was down 5,617 million yen (-43.6%) year-on-year to amount to 7,255 million yen. Net income attributable to owners of the parent decreased 6,882 million yen (-68.4%) as compared with the same period last year to reach 3,176 million yen. Such decreases are due to the accrual of 2,043 million yen of income taxes for prior periods, as a result of the court ruling on the petition filed by our Thai subsidiary against the local tax authorities.
Performance by Segment for the 1Q of FY 3/2017 (From April 1, 2016 to June 30, 2016)
Machined Components Business Segment
Products in our Machined components business segment include our anchor product line, 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. While growing demand fueled the sales volume of ball bearings in all markets, sales dropped slightly due to the strong yen. Sales remained robust in the automobile market where demand for energy-efficient models equipped with safety devices soared. While the strong yen nibbled away at sales of both rod-end bearings and pivot assemblies, rod-end bearings sales remained generally upbeat while the sales volume of pivot assemblies hovered around the same level they were for the same period last year despite the shrinking HDD market.
In the final tally, net sales for the first quarter dropped 1,767 million yen (-4.3%) year on year to total 39,207 million yen. Operating income was up 445 million yen (4.5%) year on year, totaling out at 10,401 million yen owing to accelerated cost cutting.
Electronic Devices and Components Business
The core products of our Electronic devices and components business include electronic devices (LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers (fan motors), precision motors, and special devices. Sales of LED backlights for LCDs dropped off markedly as the global smartphone market continued to languish while sales of sensing devices remained upbeat. HDD spindle motor sales were strong despite the ever-shrinking HDD market. While sales for stepping motors and other motors dipped slightly due to the appreciation of the yen, sales by volume were healthy.
As a result, net sales for the first quarter dropped 5,400 million yen (-6.3%) year on year to total 80,911 million yen. Operating income was also down 5,176 million yen (-92.3%) year on year, totaling out at 432 million yen.
Other Business Segment
Net sales for the first quarter in our Other business segment, which includes machine made in-house, were up 64 million yen (60.6%) year on year to total 169 million yen. Operating losses decreased 25 million yen year on year to total 16 million yen.
In addition to the figures noted above, 3,846 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 3,010 million yen last year.
Analysis of Financial Position for the 1Q of FY 3/2017 (From April 1, 2016 to June 30, 2016)
Assets, Liabilities, and Net Assets
The Minebea Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient asset management, controlling capital investments, and reducing interest-bearing debts.
Total assets at the end of the current first quarter amounted to 451,395 million yen, down 8,032 million yen compared to the end of the previous fiscal year. Total liabilities amounted to 236,216 million yen. That is an increase of 14,762 million yen over what it was at the end of the previous fiscal year due primarily to an increase in short-term loans. Net assets totaled 215,178 million yen, with a year-on-year decrease of 22,795 million yen. This led to an equity ratio of 46.1%, representing a year-on-year drop of 4.1 percentage points.
Condition of Cash Flows
The balance of cash and cash equivalents at the end of the current first quarter was 34,013 million yen, up 4,871 million yen from what it was at the end of the previous fiscal year and rising 4,711 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 17,899 million yen, up 7,293 million yen year on year owing to increases in income before income taxes, notes and accounts receivable, notes and accounts payable, a decrease in inventories, as well as depreciation and amortization costs. Net cash used for investment activities increased 6,532 million yen year on year to total 19,997 million yen due primarily to the acquisition of marketable securities and tangible fixed assets. Net cash from financing activities totaled 9,250 million yen due to short-term loans as well as a dividend payments, etc. adding up to a 13,401 million yen year-on-year decrease in cash outflows.
The content of this page is based on information included in the "Brief Report for First Quarter of Fiscal Year Ending March 2017 (From April 1, 2016 to June 30, 2016)" announced on August 2, 2016.
