2004
Apr.26, 2004
Minebea Co., Ltd.
Liquidation of Subsidiaries and Revision of Business Performance Forecast for the Fiscal Year ended March 2004
We hereby announce that our Board of Directors has resolved at a meeting on April 26, 2004 to liquidate the following four subsidiaries. We also inform you that we have revised as shown below the forecast of non-consolidated business performance for the fiscal year ended March 2004 due to the reorganization of our sales subsidiary in Singapore.
I.Liquidation of Subsidiaries
1.Background to liquidation
- (1) Minebea Onkyo Co., Ltd.
Minebea Onkyo Co., Ltd. was established in July 1991 for development and manufacture of speakers. Since then, we repeatedly extended financial support to this subsidiary, which suffered declining performance owing to a slump in the speaker business. Despite our consistent support, we saw no prospects for turning the company around and transferred its operations to Minebea Co., Ltd. in June 2003 to keep the speaker business going in the Minebea Group. Now that the business transfer has been completed, we have decided to liquidate Minebea Onkyo Co., Ltd. - (2) NMB Onkyo Co., Ltd.
NMB Onkyo Co., Ltd., the parent company of Minebea Onkyo Co., Ltd., has carried out its objective and we have decided to liquidate the company. - (3) NMB F.T.Inc.
NMB F.T. Inc. was set up in May 1999 exclusively for securitization of accounts receivable in the U.S. Accounts receivable securitization being no longer required, we have decided to liquidate this company. - (4) NMB Trading Pte.Ltd.
Established in May 1984, NMB Trading Pte. Ltd. has fulfilled its function as a fund-raising company for our subsidiaries in Singapore. Since Singapore subsidiaries have switched to direct loans from Minebea Co., Ltd. or financial institutions, NMB Trading Pte. Ltd. no longer has a function to serve. This has led us to liquidate the company.
2.Outline of subsidiaries to be liquidated
| (1)Minebea Onkyo Co., Ltd. | (2)NMB Onkyo Co., Ltd. | |
|---|---|---|
| Location | Tokyo, Japan | Tokyo, Japan |
| Representative | Toshifumi Fukawatase | Toshifumi Fukawatase |
| Capital | 481 million yen | 480 million yen |
| Shareholder and ownership | Minebea Co., Ltd. 100% (Indirect ownership) |
Minebea Co., Ltd. 100% (Direct ownership) |
| Description of business | Development and manufacture of speakers | Holding of shares |
| Planned date of liquidation | End of December 2004 | End of December 2004 |
| (3)NMB F.T.Inc. | (4)NMB Trading Pte.Ltd. | |
|---|---|---|
| Location | Delaware, U.S.A. | Singapore |
| Representative | Masayoshi Yamanaka | Hiromi Yoda |
| Capital | US$ 10 | S$ 15,000,000 |
| Shareholder and ownership | Minebea Co., Ltd. 100% (Indirect ownership) |
Minebea Co., Ltd. 97.6% Direct ownership 2.4% Indirect ownership |
| Description of business | Securitization of account receivable | Fund-raising and lending |
| Planned date of liquidation | End of June 2004 | End of July 2004 |
3.Impact on business performance
Losses incurred by each subsidiary in connection with 1) and 2) were accounted for in the previous fiscal year's financial results. There will be no impact on the forecast of the current term (fiscal year ended March 2004) business performance.
With regard to 3), there will be no impact on the forecast of the current term business performance, either.
In connection with 4), we anticipate extraordinary losses of 100 million yen on a non-consolidated basis and 129 million yen on a consolidated basis for the fiscal year ending March 2005.
II.Revised Forecast
As a result of the reorganization of Minebea Technologies Pte. Ltd., our sales subsidiary in Singapore, we anticipate extraordinary losses of 7,463 million yen on a non-consolidated basis as losses on revaluation of marketable securities in affiliates. We have therefore revised today the forecast of business performance for the fiscal year ended March 2004 that we announced on November 13, 2003. There will be no impact on the forecast of the consolidated business performance.
Revision of Non-consolidated Business Performance Forecast for the Fiscal Year ended March 2004(April 1, 2003 to March 31, 2004)
| Net Sales | Ordinary Income | Net Income | |
|---|---|---|---|
| Forecast announced on November 13, 2003 (A) | 179,500 | 12,000 | 4,800 |
| Revised forecast (B) | 185,105 | 13,343 | 2,266 |
| Variation (B-A) | 5,605 | 1,343 | -2,534 |
| Percentage change (%) | 3.1% | 11.2% | -52.8% |
| Previous results (Fiscal year ended March 2003) |
162,952 | 11,062 | 1,227 |
| (N.B.) | The forecast has been made on the basis of the information available on the issue date of this press release. Actual results may differ from the forecast, owing to various factors. |
| Company Name | Minebea Co., Ltd. |
|---|---|
| Representative | Tsugio Yamamoto Representative Director, President and CEO (Code No.6479 TSE Div.No.1) |
| Contact Person | Takashi Yamaguchi Managing Executive Officer in charge of Accounting and Finance (TEL. 03-5434-8611) |
Product information, contact and other context are subject to change without prior notice.
