Results Summary
Latest Update : Nov.8, 2019
Back to Financial Results (FY3/2020)
Overview for the 1H of FY3/2020 (From April 1, 2019 to September 30, 2019)
During the first half of the fiscal year (April 1, 2019 to September 30, 2019), the Japanese economy continued to slow as a result of such factors as sluggish exports caused by intensified trade friction between the United States and China and appreciation of the yen against major currencies. In the United States, despite strong employment and consumer spending, business confidence waned as a result of such factors as a decrease in external demand in response to China's launch of retaliatory tariffs. In Europe, economic conditions were sluggish, especially in the manufacturing sector, due to concern over a no-deal Brexit despite favorable consumer spending. As for the Asian region, government-led infrastructure investment accelerated in China, but the economy slowed as exports to the United States slumped due to tariff increases by the United States.
Working against this backdrop, the MinebeaMitsumi Group concentrated on cutting costs, creating high-value-added products, developing new technologies, and enhancing its marketing approach to boost profitability further.
As a result, net sales were up 34,530 million yen (7.7%) year on year to 483,898 million yen. Operating income was down 10,880 million yen (-32.1%) year on year to 23,035 million yen, profit before income taxes was down 11,215 million yen (-32.7%) to 23,061 million yen, and profit for the period attributable to owners of the parent was down 10,643 million yen (-39.6%) to 16,213 million yen.
U-Shin Ltd. was made a subsidiary through a tender offer on April 10. The company has been included in the scope of consolidation as of the date of the business integration. This includes the company's profits and losses from the date of the business integration on.
Performance by Segment for the 1H of FY3/2020 (From April 1, 2019 to September 30, 2019)
In conjunction with the acquisition of U-Shin Ltd., the U-Shin business is disclosed as a reporting segment as of the first quarter. Additionally, the battery module products that were included under the MITSUMI business were transferred to the Electronic devices and components business. Accordingly, segment information has been updated to reflect this change in company organization.
The segment information disclosed for the second quarter of the previous year has been prepared based on the post-change reportable segments.
Machined Components Business Segment
The main products in our Machined components 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 aircraft. Sales of ball bearings were down both in volume and amount due to decreased demand from fan motors despite solid demand in the automobile market. Rod-end bearing sales increased owing to favorable orders in the small and medium aircraft market. Pivot assembly sales were down both in volume and amount due to shrinking of the HDD market. The exchange rate also had an impact as the yen appreciated against major currencies compared to the previous year.
As a result, net sales were down 4,248 million yen (-4.5%) year on year to 91,187 million yen, and operating income was down 3,298 million yen (-13.6%) to 20,907 million yen.
Electronic Devices and Components Business
The core products of our Electronic devices and components segment include electronic devices (devices such as LED backlights for LCDs, sensing devices (measuring components), etc.), HDD spindle motors, stepping motors, DC motors, air movers, and special devices. Sales of stepping motors and other motors were down due to decreased demand associated with sluggishness in the automobile market. Demand for our LED backlights for LCDs that offer a technological advantage in thin devices remained strong, resulting in an increase in sales. The exchange rate also had an impact as the yen appreciated against major currencies compared to the previous year.
As a result, net sales were down 5,939 million yen (-3.2%) year on year to 178,919 million yen, while operating income was up 18 million yen (0.3%) to 6,076 million yen.
Mitsumi Business
The main products in the MITSUMI business segment are semiconductor devices, optical devices, mechanical components, high frequency components and power supply components. Although camera actuators, switches, protection IC, and other products performed well, sales were down due to the decrease in game consoles and other mechanical components. The exchange rate also had an impact as the yen appreciated against major currencies compared to the previous year.
As a result, net sales were down 18,188 million yen (-10.8%) year on year to 150,578 million yen, and operating income was down 3,191 million yen (-30.8%) to 7,149 million yen.
U-Shin Business
The main products in the U-Shin business segment are key sets, door latches, door handles, and other automotive components as well as industrial machinery components and housing equipment components (such as building and house locks). Sales of automotive components were sluggish as operations were substantially reduced due to the impact of deceleration in the automotive market, primarily in China but also in Europe and other areas. Demand for industrial machinery components for use in agricultural and construction equipment was strong.
As a result, net sales were 62,792 million yen, and operating income was 1,542 million yen.
Other Business Segment
Machines produced in-house are the main products in our Other business segment. Net sales were up 113 million yen (36.6%) year on year to 422 million yen, and the operating loss increased 535 million yen year on year to total 694 million yen.
In addition to the figures noted above, 11,945 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 6,529 million yen for the second quarter of the previous fiscal year.
Analysis of Financial Position for the 1H of FY3/2020 (From April 1, 2019 to September 30, 2019)
Assets, Liabilities, and Net Assets
Our Group sees "strengthening our financial position" as a top priority and is taking various steps, such as efficient controlling capital investments, asset management, and reducing interest-bearing debt.
Total assets at the end of the second quarter were 879,427 million yen, up 137,300 million yen from the end of the previous fiscal year. The main reason for this uptick was an increase in trade and other receivables, inventories and property, plant and equipment. Total liabilities at the end of the second quarter were 474,337 million yen, up 139,470 million yen from the end of the previous fiscal year. The main reason for this was an increase in trade and other payables and bonds and borrowings.
Equity came to 405,090 million yen, bringing the equity ratio attributable to owners of the parent down 8.7 percentage points from the end of the previous fiscal year to 45.2%.
Condition of Cash Flows
Cash and cash equivalents at the end of the second quarter were 102,656 million yen, down 19,776 million yen from the end of the previous fiscal year.
Cash flows from various business activities during of the first fiscal half and relevant factors were as follows:
Net cash provided by operating activities amounted to 13,892 million yen (compared to 23,075 million yen in the same period of the previous year). This was primarily due to increases and decreases in profit before income taxes, depreciation and amortization, trade and other receivables, and inventories. Net cash used in investing activities amounted to 27,017 million yen (compared to 31,909 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment, etc. Net cash used in financing activities amounted to 1,481 million yen (compared to 5,318 million yen in the same period of the previous year). This was primarily due to increases and decreases in short-term borrowings, repayments of long-term borrowings, and dividends paid, etc.
The content of this page is based on information included in the "Brief Report for Second Quarter of Fiscal Year Ending March 2020 (From April 1, 2019 to September 30, 2019)" announced on November 7, 2019.
