Results for the Three Months Ended December 31, 2008
(1) Overview of Financial Results
|The global recession triggered by the U.S. financial crisis has further worsened since we announced financial results for the second quarter in October 2008, and there are increasing concerns for the further slowdown of the economy.
For the three months ended December 31, 2008, net sales were 735.1 billion yen, down 20.2% compared to the same period last year. Market prices, mainly for digital products, have declined over the same period last year, which caused a decrease in net sales of 175.5 billion yen. Also, foreign exchange fluctuations, resulting from a sharp appreciation of the yen, led to a drop in net sales by 74.1 billion yen.
Operating loss was 15.8 billion yen. Market prices have declined over the same period last year, which caused a decrease in operating income of 175.5 billion yen. Also, foreign exchange fluctuations led to a drop in operating income by 19.5 billion yen. We were unable to make up for these losses despite the company-wide efforts to reduce costs, and operating income decreased 67.8 billion yen compared to the same period last year.
Additionally, we posted a loss on impairment of investments in securities of 43.3 billion yen, restructuring charges of 21.7 billion yen arising from reorganization of LCD plants and other measures, and a loss on violation of the antitrust law of 12.0 billion yen resulting from alleged fixing of LCD panel prices in the U.S. As a result, we recorded net loss of 65.8 billion yen.
For the nine months ended December 31, 2008, net sales were 2,297.5 billion yen, down 10.3% and operating income was 34.8 billion yen, down 73.4% from the same period last year. Net loss was 37.8 billion yen.
(2) Sales by Product Group
|For detailed information, please download Supplementary Data (PDF:46KB).
Note: Sales by each product group include internal sales between segments (Consumer/Information Products and Electronic Components). Also, starting from the year ending March 31, 2009, product groupings have been recategorized and changed from the previous groupings of Audio-Visual and Communication Equipment, Home Appliances, Information Equipment, LSIs, LCDs and Other Electronic Components to Audio-Visual and Communication Equipment, Health and Environmental Equipment, Information Equipment, LCDs, Solar Cells and Other Electronic Devices. Also, starting from the three months ended December 31, 2008, some items previously included in Audio-Visual and Communication Equipment, and some in Information Equipment, have been recategorized and are now included in the other product grouping.
|Sales of Audio-Visual and Communication Equipment were 373.2 billion yen, down 18.0% compared to the same period last year. Unit sales of LCD TVs increased, however, sales on a monetary basis decreased owing to severe price declines and the appreciation of the yen. Mobile phone sales were down significantly due to the sluggish Japanese market. |
Sales of Health and Environmental Equipment were 49.0 billion yen, down 17.6%. Sales of refrigerators grew, though sales of microwave ovens declined.
Sales of Information Equipment were 81.5 billion yen, down 19.2%. Sales of copiers/printers saw declining sales.
As a result, sales of the three product groups comprising Consumer/Information Products were 503.8 billion yen, down 18.1% compared to the same period last year.
|Sales of LCDs were 242.6 billion yen, down 20.9% compared to the same period last year. Sales of small- and medium-size LCDs mainly for mobile phones dropped, while sales were also down for large-size LCDs for TVs due to price declines. |
Sales of Solar Cells were 37.8 billion yen, up 18.1%. Sales expanded in overseas markets, despite the negative impact from the appreciation of the yen.
Sales of Other Electronic Devices were 72.4 billion yen, down 25.0%. Sales of CCD/CMOS imagers decreased due to the slowdown in the mobile phone market.
As a result, sales of the three product groups comprising Electronic Components were 352.9 billion yen, down 18.9% compared to the same period last year.
For the nine months ended December 31, 2008, sales of Consumer/Information Products were 1,501.1 billion yen, down 14.2% and sales of Electronic Components were 1,264.9 billion yen, up 1.5% compared to the same period last year.
(3) Operating Income by Product Group
|Operating loss for Audio-Visual and Communication Equipment was 22.3 billion yen, reflecting a significant drop in sales of mobile phones, as well as price declines and the negative impact from the appreciation of the yen for LCD TVs. |
Operating income for Health and Environmental Equipment was 0.5 billion yen, down 27.2%, while operating income for Information Equipment was 3.2 billion yen, down 61.1%.
As a result, operating loss for the three product groups comprising Consumer/Information Products was 18.5 billion yen.
|Operating income for LCDs was 5.5 billion yen, down 77.4% compared to the same period last year. This was due to rapidly worsening supply/demand balance and dramatic price declines for LCD panels. |
Operating loss for Solar Cells was 3.5 billion yen. Though we started new thin-film solar cell production lines at the Katsuragi Plant in October 2008, the start-up costs for these lines increased. The appreciation of the yen, especially against the euro, had a negative impact as well.
Operating loss for Other Electronic Devices was 0.4 billion yen. This was due mainly to a drop in sales for CCD/CMOS imagers.
As a result, operating income for the three product groups comprising Electronic Components was 1.5 billion yen, down 94.9% compared to the same period last year.
For the nine months ended December 31, 2008, operating income of Consumer/Information Products was 0.6 billion yen, down 98.8% and operating income of Electronic Components was 34.0 billion yen, down 53.1% compared to the same period last year.
(4) Capital Investment, Depreciation and Amortization, and R&D Expenditures
|For the nine months ended December 31, 2008, capital investment was 238.6 billion yen, down 13.0% and depreciation and amortization was 200.9 billion yen, up 4.4% compared to the same period last year. R&D expenditures were 157.0 billion yen, roughly equal to the same period last year.