FY 2015 FIRST QUARTER CONSOLIDATED FINANCIAL RESULTS
(April 1, 2015 to June 30, 2015)
1.Company Name : SANKEN ELECTRIC CO., LTD.
2.Code NO :
6707
3.Headquarters : 3-6-3 Kitano, Niiza-shi, Saitama 352-8666, Japan
4.URL : http://www.sanken-ele.co.jp/
5.Contact : Finance and Investor Relations Division
Tel. 81-48-487-6121
1. FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2015
(1) Consolidated Results of Operations
Net sales (millions of yen) | Operating income (millions of yen) | Ordinary income (millions of yen) | Profit attributable to owners of parent (millions of yen) | |
Three months ended Jun 30,2015 Three months ended Jun 30,2014 | 36,198 (-1.1%) 36,591 (14.0%) | 198 (-88.0%) 1,644 (43.3%) | -137 ( - ) 1,515 (79.0%) | -602 ( - ) 756 (-66.8%) |
Note1: Comprehensive income: 592 million yen ( -%) for three months ended June 30, 2015 / 53 million yen ( -98 7%) for three months ended June 30, 2014
Note2: Indication of percentages shows the ratio of increase or decrease from the first quarter of the previous fiscal year
Net income per share (yen) | Diluted net income per share (yen) | |
Three months ended Jun 30,2015 Three months ended Jun 30,2014 | -4.97 6.24 | - - |
(2) Consolidated Financial Position (Millions of yen)
Total assets | Net assets | Shareholders' equity ratio | |
As of June 30, 2015 As of March 31, 2015 | 195,094 193,267 | 63,182 63,021 | 32.1% 32.4% |
Reference: Shareholders' equity: 62,717 million yen as of June 30, 2015 / 62,584 million yen as of March 31, 2015
2. DIVIDEND INFORMATION
Dividend per share | |||||
First quarter | Second quarter | Third quarter | Fiscal-year-end | Annual | |
Fiscal year 2014 Fiscal year 2015 | - - | 3.00yen | - | 3.50yen | 6.50yen |
Fiscal year 2014 Fiscal year 2015 | - - | ||||
Fiscal year 2015(forecast) | 3.50yen | - | 3.50yen | 7.00yen |
3. FISCAL YEAR 2015 CONSOLIDATED FINANCIAL FORECAST (April 1, 2015 to March 31, 2016) (Millions of Yen)
Net sales (percentage change from the previous year) | Operating income (percentage change from the previous year) | Ordinary income (percentage change from the previous year) | Profit attributable to owners of parent (percentage change from the previous year) | Net income per share | |
Second quarter (cumulative) Full Year | 83,000 (7 2%) 172,000 (7 0%) | 5,700 (10 2%) 13,000 (16 1%) | 5,100 (2 8%) 11,700 (13 2%) | 3,300 (-5 0%) 8,100 (2 0%) | 27.22yen 66.80yen |
4. OTHER
(1) Changes in significant subsidiaries during the three months ended June 30, 2015 (changes in particular subsidiaries accompanying the change in scope of consolidation): No
(2) Application of particular accounting method for quarterly consolidated financial statements: Yes
(3) Changes in accounting policies, changes in accounting estimates, restatements
- Changes in accounting policies due to the amendment of accounting standards, etc : Yes
- Changes in accounting policies due to reasons other than above : Yes
- Changes in accounting estimates : No
- Restatements : No
(4) Number of shares outstanding (common share)
- Number of shares outstanding at the end of the period (including treasury stock)
- Number of treasury stocks at the end of the period
- Average number of shares outstanding during three months ended June 30
* The above description about future matters including financial forecast is based upon information available as of the present time and assumptions we considered valid Due to various factors, our actual performance could greatly differ from the forecast For assumptions and notes regarding the forecasts, refer to "Qualitative Information concerning the Forecast of Consolidated Business Results "
1
The global economy remained on a moderate recovery trend as a whole during the current first quarter consolidated fiscal period, while the degree of economic confidence varied from region to region and tangible concerns over the ongoing low prices of crude oil and other resources persisted. The US economy stayed on a recovery trend as a whole in spite of sluggishness due to the impact of a strong dollar in the second half of the current first quarter. The European economy remained on a recovery trend in spite of the Greece debt crisis, while the Chinese economy further slowed in Asia. The Japanese economy progressed steadily, backed by an upward trend in corporate investments spurred by ongoing improvements in corporate performance, along with signs of recovery in consumer sentiment. Under these economic conditions, demand for the Company's products remained on an increasing trend in strategically focused markets in spite of stringent factors in some fields. The Company started the "2015 Mid-term Business Plan" on April 1 of this year with the aim at qualitatively restructuring itself into a truly global company, and listed "Increase sales" and "Generate cash flows" as a basic policy. The Company's basic policy for fiscal 2015, the first year of the Plan, is to "Focus on the strategic market." Under this policy we have worked to "Increase sales" and "Expand production capacity" in the environmentally-friendly and energy saving and green energy markets such as automotive, motor, white goods, industrial equipment, communications and new energy. In the first quarter consolidated fiscal period, the first three months of the first year of the Plan, sales of semiconductor devices were sluggish and remained unchanged as compared to the same period in the previous year in spite of the weaker yen, and sales of PS products declined significantly due to the completion of the latest round of corporate investments for telecommunications. Mainly due to such factors, net sales were ¥36,198 million, a decrease of ¥393 million (1.1%) as compared to the same period in the previous year. For income, operating income declined significantly as compared to the same period in the previous year, as we recorded operating income of ¥198 million, a decrease of ¥1,446 million (88.0%). This result was mainly attributable to decreased net sales, revisions in our product mix, and increased expenses relating to the new Sanken ERP system activated in May of this year. We were forced to record both an ordinary loss and quarterly net loss attributable to owners of the parent company: ordinary loss was ¥137 million (ordinary income of ¥1,515 million in the same period in the previous year) and the quarterly net loss attributable to owners of parent was ¥602 million (quarterly net income attributable to owners of the parent company of ¥756 million in the same period in the previous year).
Overview of business by segment is as follows.
In the semiconductor devices segment, sales of automotive products increased by 10.9% as compared to the same period in the previous year, partly thanks to higher sales overall boosted by the weaker yen. Sales of products for white goods such as air conditioners and refrigerators varied greatly in different customer regions, ranging from a significant decline for domestic customers to steady levels for South Korean customers and sharp rises in China. Overall sales of products for white goods exceeded the level of the same period in the previous year by 2.9%. Consolidated net sales from this segment, however, were ¥29,701 million, marking a slight increase of ¥19 million (0.1%) as compared to the same period in the previous year mainly due to significantly declined sales of products for industrial machinery and TVs and audio products. For income, consolidated operating income was ¥1,316 million, marking a substantial decrease of ¥1,177 million (47.2%) as compared to the same period in the previous year, mainly due to sluggish sales, revisions in our product mix, and increased expenses relating to the new Sanken ERP system activated in May.
For the power modules segment, sales of products for printers for office and industrial machinery stayed on the same level as the previous year, while sales of durability-type adapters for emerging countries expanded. As a result, consolidated net sales from this segment were ¥4,068 million, an increase of ¥459 million (12.7%) as compared to the same period in the previous year. Meanwhile, for income we were forced to record consolidated operating loss of ¥285 million (consolidated operating loss of ¥238 million in the same period in the previous year) mainly due to depreciation associated with investment in production facilities.
2
Sales for the power systems segment remained sluggish. Sales of the relevant power-supply units declined significantly due to the completion of the latest round of large-scale corporate investments for telecommunication facilities mainly for mobile phones, while sales of products in new energy fields, a sector that should complement the aforesaid decline, lacked strength. As a result, consolidated net sales from this segment were ¥2,428 million, a decrease of ¥871 million (26.4%) as compared to the same period in the previous year. For income, we recorded consolidated operating loss of ¥123 million (consolidated operating loss of ¥62 million in the same period in
the previous year).
Assets as of the end of the three months ended June 30, 2015 were ¥195,094 million, an increase of ¥1,827 million from the end of the previous consolidated fiscal year. This was mainly due to an increase in inventories of ¥5,157 million, total property, plant and equipment of
¥3,075 million and a decrease in notes and accounts receivable-trade of ¥6,213 million.
Liabilities were ¥131,912 million, a decrease of ¥1,666 million from the end of the previous consolidated fiscal year. This was mainly due to an increase in bonds payable of ¥15,000 million and a decrease in commercial papers of ¥12,500 million.
Net Assets were ¥63,182 million, an increase of ¥160 million from the end of the previous consolidated fiscal year. This was mainly due to
an increase in foreign currency translation adjustment of ¥1,100 million and a decrease in retained earnings of ¥1,026 million.
We expect that the global economy will overall continue to recover, with ongoing recovery for the time being in the US, moderate expansion of the Chinese economy in spite of concerns about weak stock and real estate markets and an overall slowdown in growth, and an ongoing recovery of the economy in Europe thanks to steady personal consumption in spite of concerns about the impact of the Greece debt crisis. We also forecast a moderate recovery trend in the Japanese economy as personal consumption recovers amid ongoing improvements in employment circumstances and income conditions. Under these circumstances, the Company will strive to reinforce the sales of its existing products, steadily expand the demand for new functions and products in strategic markets relating to environmentally-friendly and energy saving and green energy, and develop its supply capability to keep up with increased orders received by expanding its capacity for wafers supply and strengthening its capacity for semiconductor assembly processes. Through these measures, the Company will make
concerted efforts to achieve the group plan for fiscal 2015.
3
Millions of yen
ASSETSCurrent assets
March 31 June 30
2015 2015
Cash and deposits | 17,443 | 16,890 |
Notes and accounts receivable - trade | 37,489 | 31,276 |
Merchandise and finished goods | 16,963 | 19,278 |
Work in process | 24,351 | 27,560 |
Raw materials and supplies | 12,585 | 12,218 |
Deferred tax assets | 1,201 | 1,389 |
Other | 6,168 | 5,531 |
Allowance for doubtful accounts | (19) | (21) |
Total current assets | 116,183 | 114,124 |
Non-current assets
Property, plant and equipment
Buildings and structures, net | 20,325 | 24,513 |
Machinery, equipment and vehicles, net | 26,213 | 26,856 |
Tools, furniture and fixtures, net | 1,119 | 1,336 |
Land | 5,263 | 5,275 |
Leased assets, net | 2,565 | 2,298 |
Construction in progress | 10,308 | 8,591 |
Total property, plant and equipment | 65,795 | 68,871 |
Intangible assets
Software | 3,915 | 4,056 |
Other | 2,056 | 2,070 |
Total intangible assets | 5,971 | 6,127 |
Investments and other assets
T
Total assets 193,267 195,094
4
Millions of yen
Liabilities
Current liabilities
March 31 June 30
2015 2015
Notes and accounts payable - trade | 20,909 | 20,810 |
Short-term loans payable | 26,570 | 21,492 |
Current portion of bonds | 4,100 | 14,100 |
Commercial papers | 22,500 | 10,000 |
Lease obligations | 1,233 | 1,214 |
Income taxes payable | 186 | 480 |
Provision for directors' bonuses | 30 | 12 |
Accrued expenses | 9,896 | 10,314 |
Other | 1,926 | 2,114 |
Total current liabilities | 87,353 | 80,541 |
Non-current liabilities
T
Net assets
Shareholders' equity
Capital stock 20,896 20,896
Capital surplus 10,301 10,301
Retained earnings 28,114 27,088
Treasury shares (3,981) (3,984)
Total shareholders' equity 55,331 54,301
Accumulated other comprehensive income
Valuation difference on available-for-sale securities 371 489
Foreign currency translation adjustment 5,778 6,879
Remeasurements of defined benefit plans 1,102 1,047
Total accumulated other comprehensive income 7,252 8,415
Non-controlling interests 437 465
Total net assets 63,021 63,182
Total liabilities and net assets 193,267 195,094
5
(2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME AND QUARTERLY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Millions of yen
Three months Three months
ended ended
CONSOLIDATED STATEMENTS OF INCOME | Jun.30, 2014 | Jun.30, 2015 |
Net sales | 36,591 | 36,198 |
Cost of sales | 27,314 | 27,009 |
Gross profit | 9,277 | 9,188 |
Selling, general and administrative expenses | 7,632 | 8,990 |
Operating income | 1,644 | 198 |
Non-operating income | ||
Interest income | 11 | 3 |
Dividend income | 24 | 23 |
Foreign exchange gains | 13 | - |
Gain on insurance adjustment | 40 | 84 |
Miscellaneous income | 140 | 106 |
Total non-operating income | 231 | 216 |
Non-operating expenses Interest expenses | 202 | 212 |
Foreign exchange losses | - | 118 |
Miscellaneous loss | 158 | 222 |
Total non-operating expenses | 360 | 553 |
Ordinary income (loss) | 1,515 | (137) |
Extraordinary income Gain on sales of non-current assets | 0 | - |
Total extraordinary income | 0 | - |
Extraordinary losses Loss on retirement of non-current assets | 0 | 1 |
Total extraordinary losses | 0 | 1 |
Income (loss) before income taxes and minority interests | 1,514 | (139) |
Income taxes | 742 | 437 |
Profit (loss) | 772 | (577) |
Profit attributable to non-controlling interests | 16 | 24 |
Profit (loss) attributable to owners of parent | 756 | (602) |
6
Millions of yen
Three months Three months
ended ended
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Jun.30, 2014 Jun.30, 2015
Profit (loss) 772 (577)
Other comprehensive income
Valuation difference on available-for-sale securities 83 117
Foreign currency translation adjustment (740) 1,107
Remeasurements of defined benefit plans, net of tax (62) (55)
Total other comprehensive income (719) 1,170
Comprehensive income 53 592
Comprehensive income attributable to
Comprehensive income attributable to owners of parent | 66 | 560 |
Comprehensive income attributable to non-controlling interests | (13) | 31 |
7
(3) SEGMENT INFORMATION [Information about Sales and Operating Income (Loss) by Reporting Segment]THREE MONTHS ENDED JUNE 30, 2014 Millions of yen
Reporting Segment | Total | Adjustment | Amount stated in QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |||
Semi-conductor Devices | PM | PS | Total | Adjustment | Amount stated in QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |
Sales (1) Sales for customer (2) Intersegment Sales or Transfer | 29,682 198 | 3,608 141 | 3,300 0 | 36,591 341 | － (341) | 36,591 － |
Total | 29,881 | 3,750 | 3,300 | 36,932 | (341) | 36,591 |
Income (loss) by segment | 2,493 | (238) | (62) | 2,193 | (548) | 1,644 |
THREE MONTHS ENDED JUNE 30, 2015 Millions of yen
Reporting Segment | Total | Adjustment | Amount stated in QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |||
Semiconductor Devices | PM | PS | Total | Adjustment | Amount stated in QUARTERLY CONSOLIDATED STATEMENTS OF INCOME | |
Sales (1) Sales for customer (2) Intersegment Sales or Transfer | 29,701 217 | 4,068 136 | 2,428 0 | 36,198 354 | － (354) | 36,198 － |
Total | 29,919 | 4,205 | 2,428 | 36,553 | (354) | 36,198 |
Income (loss) by segment | 1,316 | (285) | (123) | 906 | (708) | 198 |
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distributed by
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