Results for the Six Months Ended September 30, 2005
(1) Overview of Financial Results
|Net sales were 1,335.5 billion yen, up 6.2% over the same period last year, indicating a record high performance for the first half.
Operating income was 75.0 billion yen, down 3.2% from the same period last year, with net income for the first half 36.4 billion yen, down 7.2% from the same period last year.
In terms of profit, results were lower than the same period last year reflecting price erosion due to sluggish market conditions for semiconductor devices, but were generally in line with our original projections.
Compared to the second half of the previous year, net sales for this period increased by 4.1% and operating income by 2.2%. In terms of quarterly results, the second quarter (July to September) saw double-digit growth in both net sales and operating income compared to the first quarter (April to June). Overall, business is rebounding from the situation of the second half of the previous year, showing a trend for expansion this period.
(2) Results by Product Group
Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components). For more detailed information, please download Supplementary Data (PDF: 167KB)
[ Consumer/Information Products ]
Sales of Audio-Visual and Communication Equipment were 514.2 billion yen, up 11.4% over the same period last year.
Sales of LCD TVs, mainly large-size models, and mobile phones increased, contributing to the overall growth in sales.
Sales of Home Appliances were 111.9 billion yen, up 1.9% over the same period last year.
Sales of Information Equipment were 211.0 billion yen, the same level as the same period last year.
As a result, sales of these three product groups comprising Consumer/Information Products were 837.3 billion yen, up 7.0% over the same period last year.
[ Electronic Components ]
Sales of ICs were 99.3 billion yen, down 13.6% from the same period last year.
The impact of price erosion, mainly for flash memory, led to the year-on-year decline.
Sales of LCDs were 403.2 billion yen, up 12.0% over the same period last year.
Sales of large-size LCD panels for TVs expanded, due to production increases at the Kameyama Plant. Sales of Other Electronic Components were 145.3 billion yen, up 6.8% over the same period last year. Continued sales increases in solar cells contributed to the growth.
As a result, sales of the three product groups comprising Electronic Components were 647.8 billion yen, up 6.0% over the same period last year.
Operating income for Consumer/Information Products was 29.6 billion yen, up 7.0% over the same period last year, reflecting our on-going efforts to reduce costs despite continuing price erosion for digital consumer electronics. Operating income for Electronic Components was 46.6 billion yen, down 9.0% from the same period last year, reflecting the significant impact of sluggish market conditions and price erosion in the IC sector.
(3) Capital Investment, Depreciation and Amortization, R&D Expenditures
Capital investment was 112.8 billion yen, up 4.2% over the same period last year. Depreciation and amortization was 91.2 billion yen, up 11.1%, and R&D expenditures were 92.5 billion yen, up 3.4%.