Results Summary
Latest Update : Feb.5, 2024
Back to Financial Results (FY3/2024)
During the second and third quarter of the current fiscal year, the provisional accounting treatment for the business combination has been finalized. For the Condensed Quarterly Consolidated Financial Statements and the Consolidated Financial Statements for the end of the previous fiscal year, the contents of finalization of the provisional accounting treatment has been reflected.
Overview for the 3Q of FY 3/2024 (From April 1, 2023 to December 31, 2023)
During the nine months ended December 31, 2023, the Japanese economy saw favorable corporate earnings due to progress in passing on cost increases and a pause in rising raw material prices.
On the other hand, consumer spending was stagnant due to rising prices, and the recovery in the economy was moderate. In the U.S. economy, although personal consumption has been firm, the outlook is uncertain as firms' economic activity has been restrained by their continued monetary tightening policies. In Europe, the economy stagnated amid sluggish consumer spending due to prolonged inflation, as the prolonged high interest rate policy weighed on corporate activities. The Chinese economy slowed due to sluggish domestic demand centered on consumer spending, a decline in exports of mobile phones and other IT related products, and a prolonged real estate slump. In Southeast Asia, the slowdown in exports due to sluggish global demand pushed down the economy, but domestic demand was resilient and the economy remained firm.
Working against this backdrop, the MinebeaMitsumi Group (the "Group") has focused 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 100,839 million yen (10.6%) year on year to 1,053,324 million yen. Operating income was down 14,828 million yen (-22.4%) year on year to 51,253 million yen, profit before income taxes was down 10,919 million yen (-17.6%) to 51,002 million yen, and profit for the period attributable to owners of the parent was down 8,627 million yen (-20.1%) to 34,400 million yen.
The above includes the profit and loss of HONDA TSUSHIN KOGYO CO., LTD. acquired on September 16, 2022 and Minebea AccessSolutions Inc. (former Honda Lock Mfg. Co., Ltd.) acquired on January 27, 2023.
Performance by Segment for the 3Q of FY 3/2024 (From April 1, 2023 to December 31, 2023)
The previous names of "Machined Components segment", "Electronic Devices and Components segment", "MITSUMI Business segment" and "U-Shin Business segment" have been changed to "Precision Technologies segment", "Motor, Lighting & Sensing segment", "Semiconductor & Electronics segment", and "Access Solutions segment" respectively from the first quarter of the fiscal year. This change in the name of reportable segments has no impact on segment information.
In addition, as a result of the change in the corporate organization, some classification in "Other" and "Adjustments" have changed from the first quarter of the fiscal year. The segment information disclosed for the first nine months of the previous year has been prepared based on the classification of reporting segments after the corporate organization change.
Precision Technologies Segment
The main products in Precision Technologies segment include our Group's 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 and operating income of ball bearings, the Group's mainstay product, declined due to sluggish demand for use in data centers. Sales of pivot assemblies declined due to a delay in recovering demand for HDD applications, but sales of rod-end bearings increased due to a recovery in demand for aircraft-related products.
As a result, net sales were up 5,124 million yen (3.5%) year on year to 153,304 million yen, while operating income was down 7,230 million yen (-21.1%) to 27,045 million yen.
Motor, Lighting & Sensing Business
The main products of Motor, Lighting & Sensing 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 increased mainly due to an increase in demand for automotive motors.
As a result, net sales were up 2,299 million yen (0.9%) year on year to 272,364 million yen, and operating income was up 2,781 million yen (50.7%) to 8,274 million yen.
Semiconductor & Electronics Business
The main products in Semiconductor & Electronics segment are semiconductor devices, optical devices, mechanical components, power supply components, and smart products.
Sales of mechanical components and optical devices for camera actuators declined, and both net sales and operating income decreased.
As a result, net sales were down 21,223 million yen (-5.2%) year on year to 385,253 million yen, and operating income was down 15,162 million yen (-36.9%) to 25,932 million yen.
Access Solutions Business
The main products of Access Solutions segment are key sets, door latches, door handles, and other automotive components as well as industrial equipment components.
In addition to the business integration of Minebea AccessSolutions Inc., net sales were up owing to recovered demand resulting from a recovery in automobile production.
As a result, net sales were up 113,870 million yen (90.9%) year on year to 239,100 million yen, and operating income was up 5,825 million yen to 6,385 million yen.
Other Business Segment
Software design, development, and machines produced in-house are the main products in our Other business segment.
Net sales were up 769 million yen (30.3%) year on year to 3,303 million yen, and operating income was down 458 million yen for an operating loss of 516 million yen.
In addition to the figures noted above, 15,867 million yen in corporate expenses, etc. not belonging to any particular segment is indicated as adjustments. The total amount of adjustments was 15,283 million yen for the same period of the previous fiscal year.
Analysis of Financial Position for the 3Q of FY 3/2024 (From April 1, 2023 to December 31, 2023)
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 of capital investments, asset management, and reducing interest-bearing debt. We will reform our portfolio to increase the weight of our highly profitable core businesses and engage in highly effective M&A, promoting an appropriate and flexible financial strategy.
Total assets at the end of the third quarter were 1,402,586 million yen, up 99,368 million yen from the end of the previous fiscal year. This was primarily due to increases in inventories, property, plant and equipment, and other current assets.
Total liabilities at the end of the third quarter were 724,336 million yen, up 63,633 million yen from the end of the previous fiscal year. The main reason for this was an increase in bonds, and borrowings, trade and other payables.
Equity came to 678,250 million yen, bringing the equity ratio attributable to owners of the parent down 0.9 percentage points from the end of the previous fiscal year to 47.6%.
Condition of Cash Flows
Cash and cash equivalents at the end of the third quarter were 138,762 million yen, down 5,909 million yen from the end of the previous fiscal year.
Cash flows from various business activities during the first nine months and relevant factors were as follows:
Net cash provided by operating activities came to 63,800 million yen (compared to 7,068 million yen in the same period of the previous year). This was primarily due to changes in profit before income taxes, depreciation and amortization, and trade and other payables.
Net cash used in investing activities came to 69,179 million yen (compared to 112,666 million yen in the same period of the previous year). This was primarily due to purchase of property, plant and equipment, marketable securities, etc.
Net cash used by financing activities came to 5,133 million yen (compared to 68,579 million yen provided in financing activities in the same period of the previous year). This was primarily due to a decrease in short-term borrowings.
The content of this page is based on information included in the "Brief Report for Third Quarter of Fiscal Year Ending March 2024 (From April 1, 2023 to December 31, 2023)" announced on February 2, 2024.
