Tdk Corp S/Adr (TTDKY) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Yamanashi. Thank you for your taking time this project with the schedule. We are so honored to have so many people attending this financial briefing for the first quarter, the fiscal year in March 2024. We are here now to go through the consulted results. First, the highlights of the results. The global economy is in an unstable situation with the speed of growth slowing down, due to the prolonged inflation and the continued monetary tightening policies in the US and European countries. The yen has been depreciating against the US dollar and the euro. This has become a remarkable situation in the FX space. Under such a business environment, the electronics market, which will have an impact on our performance, is suffering from a prolonged sluggish final demand, slowing down the demand for ICT market. HDD in the market and automotive market are now faced with changing demand trends. On year-on-year basis, our net sales was down 1.4% and operating profit was down 41% year-on-year. In the ICT market, sales of passive components, especially for smartphones, declined significantly. while sales of HDD heads and HDD suspension assemblies dropped sharply due to 31% year-on-year decline in demand for HDDs. In the automotive market, sales of passive components and sensors grew but remained sluggish compared to our initial forecast due to customers' inventory adjustment of automotive components. In the industrial equipment, sales of power supply products remained firm. Demand for ICT-related devices, which has been sluggish, is expected to decline in the second quarter onward from our assumption we made in the beginning of the fiscal year. In particular, the production volume of HDDs for data centers is expected to decrease significantly. In addition, the demand trend f...