Fiscal 2007 Financial Results
(1) Overview of Financial Results
|Net sales set a record for the fifth consecutive year at 3,417.7 billion yen, up 9.3% over the previous year, reflecting expanded sales of products such as LCD TVs, mobile phones, and LCD panels for TVs.
Operating income was 183.6 billion yen, down 1.5% and net income was 101.9 billion yen, up 0.2%. Although we did not meet our targets for the fiscal year as a whole, we were able to offset the decline during the first half of the year, and profits were nearly at the same level as those of the previous year.
For the second half of the year, operating income increased by 25.5 billion yen and 32.4%, compared to the first half, and the operating income ratio of 4.8% in the first half of the year rose to 5.9% in the second half. Also, operating income in the second half of the year was up 8.6% over that of fiscal 2006, and profit margins improved by 0.1 percentage point.
The second half of fiscal 2007 set half-year records for both sales and profits, on the half-year basis.
Depreciation and amortization for fiscal 2007 increased by 58.8 billion yen over the previous year, resulting from changes to the calculation method for depreciation and amortization due to revisions to the Japanese Corporate Tax Law, as well as an increase in depreciation and amortization burden from LCD-centered investments. Of this, the increase due to the change in the calculation method was 15.0 billion yen. If the impact of the change was adjusted to make the comparison on the previous basis, operating income for this fiscal year would have been 198.7 billion yen, up 6.5% over the previous year.
(2) Sales by Product Group*
For detailed information, please download Supplementary Data (PDF: 79KB)
*Note: Sales by Product Group include internal sales between segments (Consumer/Information Products and Electronic Components).
Sales of Audio-Visual and Communication Equipment were 1,598.9 billion yen, up 15.7% over the previous year, thanks to increased sales of LCD TVs, and mobile phones for the Japanese market.
Sales of Home Appliances were 249.8 billion yen, up 4.5%. Sales of refrigerators and air conditioners were strong.
Sales of Information Equipment were 442.8 billion yen, about the same level as the previous year. While sales of personal computers declined, copier/printers as well as wireless PDAs grew.
As a result, sales of the three product groups comprising Consumer/Information Products were 2,291.7 billion yen, up 10.8% over the last year.
Sales of LSIs were 203.5 billion yen, up 1.6% over the previous year. Although sales of flash memory declined, sales of CCD/CMOS imagers increased.
Sales of LCDs were 1,234.1 billion yen, an increase of 18.4% compared to the previous year. Sales of large-size panels for TVs continued to show strong growth thanks to a third production line becoming operational at the Kameyama No. 2 Plant. In addition, sales of System LCDs, including units for mobile phones, also expanded.
Sales of Other Electronic Components were 325.2 billion yen, up 2.0% over the last year. Sales of solar cells were affected by a shortage of silicon raw material and only reached about the same level as the previous year. Sales of major devices used in digital equipment continued to show healthy growth.
As a result, sales of these three product groups comprising Electronic Components were 1,762.8 billion yen, up 12.9% over the previous year.
Operating income for Consumer/Information Products was 79.2 billion yen, a 3.0% decrease from the previous year. Home Appliances and Information Equipment showed an increase over the previous year; however profits for Audio-Visual and Communication Equipment declined.
As for Electronic Components, operating income was 104.3 billion yen, down 1.1% from the previous year. LCDs showed double-digit growth; however profits for LSIs and Other Electronic Components declined.
(3) Capital Investment, Depreciation and Amortization, and R&D Expenditures
Capital investment was 315.3 billion yen, up 10.9% over the previous year. This included investment of 228.8 billion yen for the LCD business centered mainly on the Kameyama No. 2 Plant. Depreciation and amortization was 276.5 billion yen, up 27.0% over the previous year. R&D expenditures were 196.1 billion yen, an increase of 3.3% over the previous year.