Latest Financial Announcements
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Financial Announcements for the Current Term
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Trends in the Past Three Fiscal Years and the Current Fiscal Year
|Profit attributable to owners of parent
|Basic earnings per share
*Numbers for the full year of the term ending March 2019 are forecasts announced on August 9, 2018.
Overview of Consolidated Financial Results for the Third Quarter of Fiscal Year Ending March 31, 2019
Sales for the first nine months under review grew to ¥40,692 million (up 6.9% year on year), reflecting year-on-year increases posted in vehicle communication equipment and personal communication equipment segments. Operating income fell to ¥2,339 million (down 0.4% year on year), due to a year-on year decline posted in the circuit testing connector segment, which offset substantial year-on-year growth posted in the vehicle communication equipment and personal communication equipment segments. Ordinary income climbed to ¥2,585 million (up 6.0% year on year), owing to factors including the posting of foreign exchange gains of ¥246 million that resulted from the depreciation of the yen. Profit attributable to owners of parent also rose to ¥1,930 million (up 6.2% year on year) as a result of the ordinary income growth stated above.
Overview of Sales by Product
Vehicle Communication Equipment
The vehicle market, a key market for this segment, is expected to continue to expand slowly thanks to the satisfactory growth of the ASEAN market, even though a downward turn occurred in the Chinese market and results remained largely unchanged in the U.S. market. In the Japanese market, new vehicle sales rose year on year, reflecting slight growth in the number of registered vehicles and strong sales of light vehicles.
In this environment, the sales of mainstay products, such as shark fin antennas, GPS antennas and other vehicle antennas, grew year on year, supported by increased sales to Japanese car manufacturers operating in Japan and overseas.
As a result, sales for this segment increased year on year, to 28,352 million (up 7.1% year on year). In terms of profit, the segment recorded a rise from a year ago, to 406 million (up 565.2% year on year). This reflected a reduction in transportation costs for components and products due to improving production control efficiency although labor costs stayed high in China and rises in customs duties on exports to the United States pushed profits down.
Circuit Testing Connector
In the market for semiconductor testing systems, a key market for this segment, there were a slowdown in products for smartphones and a lull in the demand for memory products. The market is expected to continue to grow on an overall basis, however, due to increased demand for automobile and server applications.
In this environment, sales of BGA sockets and other jigs for semiconductor back-end testing, which comprise the Group’s mainstay products, decreased year on year, due to production adjustments major customers made with slowing market growth and other factors in the background. The sales of jigs for semiconductor front-end testing, for which high-frequency electronic component testing MEMS probe cards act as a strategic centerpiece, increased year on year, given factors such as the launch of a new business through offering one-stop solutions services including jigs and peripheral devices. The LTCC business included in this segment also achieved year-on-year growth, supported by sharp rises in the sales of interposer and LED substrates.
As a result, sales for this segment declined to 6,720 million (down 4.3% year on year). Net income for the segment came to 593 million (down 56.7% year on year), reflecting factors such as falls in the sales ratios of relatively high-margin products and rises in fixed costs attributable to a sharp increase in the number of technical/manufacturing personnel aimed at expanding the scale of business in the future.
Personal Communication Equipment
In the mobile device market, the principal market for this segment, growth is slowing for smartphones and tablets, while further growth is expected for wearable terminals given their increasing diversification and sophistication. The POS terminal market has been growing steadily in a wide range of industries, including physical distribution and manufacturing, reflecting the businesses’ viewpoint of improving operational efficiency through information management. In addition, growth in this segment is also expected in the healthcare, industrial equipment and other markets.
In this environment, sales rose from the same period of the previous fiscal year in the fine connector business, with fine spring connectors as the company’s core products. This was due to strong sales of products for POS terminal manufacturers and the healthcare market, offsetting a fall in sales to mobile device manufacturers caused by a decrease in orders.
In the medical device business, which also forms part of this segment, sales grew sharply year on year as a result of strong sales of unit products to domestic customers as well as an increase in sales of components.
As a result, sales in this segment expanded from a year earlier, to 5,619 million (up 22.5% year on year). Net income from this segment was 1,341 million (up 43.0% year on year), reflecting changes in the product mix and business lineups.