Presentation Transcripts

This slide shows the results for the machined components segment.
On the left is a graph indicating quarterly net sales trends and on the right is a graph with a bar chart showing quarterly operating income trends along with a line chart for operating margins.
Net sales for the third quarter were up 12% quarter on quarter to total 46.7 billion yen, exceeding previous quarter record high. Please note that beginning this third quarter we have begun consolidating the results for C&A Engineering in the US and Mach Aero in France as "other" in machined components segment.
Ball bearing sales rose 3% quarter on quarter to total 26.8 billion yen. The average monthly external shipment volume, totaling 193 million units this quarter, was up year on year for the 21st quarter in a row. This November our monthly production volume hit an all-time high of 282 million units, almost achieving our April target of 285 million units.
Sales of rod-ends and fasteners, totaling 7.9 billion yen, were up 1% quarter on quarter.
Sales of pivot assemblies increased 4% quarter on quarter with 8.2 billion yen in sales. Pivot assemblies steadily contributed to our bottom line as we held on to over 80% of the market share.
Operating income for the third quarter totaled 11.0 billion yen exceeding previous quarter record high, putting the operating margin at 23.6%. Operating income rose 2% quarter on quarter while the operating margin was 2.3 percentage points lower than what it was last quarter. Also, if we were to exclude the sales and operating income for C&A Tool Engineering and Mach Aero, the operating income for machined components would be the same as the previous quarter.
Looking at the results by product, we see that operating income for ball bearings as well as for rod-ends and fasteners increased quarter on quarter while pivot assembly operating income slightly decreased.