<Consolidated Financial Results for the Third Quarter Ended December 31, 2014>
Forecast for the Year Ending March 31, 2015
Financial Results Forecast
| (Billions of Yen) |
| |
FY2014 |
Previous
Full Year Forecast |
Revised
Full Year Forecast |
|
Details |
| Difference |
| Net sales |
2,900.0 |
2,900.0 |
0.0 |
- |
| Operating Income |
100.0 |
50.0 |
-50.0 |
• Domestic profitability of the Product Business is worsening.
• Worsened model mix of small- and medium-size LCDs. |
Other Income
(Expenses) |
-50.0 |
-50.0 |
0.0 |
|
| Income Taxes, etc. |
-20.0 |
-30.0 |
-10.0 |
• Additional tax by China transfer pricing taxation, etc. |
| Net Income |
30.0 |
-30.0 |
-60.0 |
- |
Based on the results for the nine months and current situation, the full-year forecast for fiscal 2014 calls for net sales of 2.9 trillion yen, as previously announced, with operating income of 50.0 billion yen, which was revised from a previous forecast of 100.0 billion yen, and a net loss of 30.0 billion yen, which was revised from net income of 30.0 billion yen.
Revised forecasts reflect effects on earnings such as declining profits in the Product Business and falling prices, as well as a worsened model mix in LCD TVs and small- and medium-size LCDs.
Sales by Product Group | (Billions of Yen) |
*Sales of each product group include internal sales between segments (Product Business / Device Business).
| |
FY2014 |
|
FY2014 |
| |
Revised Full Year Forecast |
|
Previous
Full Year
Forecast |
| |
1Q to 3Q Accumu-lated Total |
|
Revised
4Q Forecast |
|
Change
(Y on Y) |
| Corre-cted Amount |
| 1H |
3Q |
|
Change
(Y on Y) |
Change
(Y on Y) |
Change
(Y on Y) |
| |
|
Digital Information Equipment |
220.5 |
122.6 |
-11.2% |
343.2 |
-5.9% |
106.7 |
-11.6% |
450.0 |
-7.3% |
-20.0 |
470.0 |
Communi-
cations |
112.1 |
72.0 |
-8.4% |
184.2 |
-1.3% |
55.7 |
-8.7% |
240.0 |
-3.1% |
0.0 |
240.0 |
| Digital Information Equipment |
332.7 |
194.7 |
-10.2% |
527.5 |
-4.4% |
162.4 |
-10.6% |
690.0 |
-5.9% |
-20.0 |
710.0 |
Health and Environ-
mental Equipment |
162.8 |
77.6 |
-5.4% |
240.5 |
-0.6% |
89.4 |
+5.4% |
330.0 |
+1.0% |
-10.0 |
340.0 |
| Energy Solutions |
142.9 |
53.6 |
-50.6% |
196.6 |
-29.0% |
83.3 |
-48.6% |
280.0 |
-36.2% |
-10.0 |
290.0 |
| Business Solutions |
164.5 |
85.1 |
+10.5% |
249.7 |
+6.0% |
90.2 |
+8.3% |
340.0 |
+6.6% |
0.0 |
340.0 |
| Product Business |
803.1 |
411.3 |
-15.1% |
1,214.4 |
-7.0% |
425.5 |
-16.9% |
1,640.0 |
-9.8% |
-40.0 |
1,680.0 |
| |
LCDs |
460.9 |
238.0 |
-14.2% |
698.9 |
-7.6% |
271.0 |
+15.3% |
970.0 |
-2.1% |
-30.0 |
1,000.0 |
| Electronic Devices |
149.7 |
156.1 |
+46.7% |
305.9 |
+20.3% |
134.0 |
+86.0% |
440.0 |
+34.8% |
+20.0 |
420.0 |
| Device Business |
610.7 |
394.2 |
+2.7% |
1,004.9 |
-0.5% |
405.0 |
+31.9% |
1,410.0 |
+7.0% |
-10.0 |
1,420.0 |
| Sub Total |
1,413.8 |
805.5 |
-7.3% |
2,219.3 |
-4.2% |
830.6 |
+1.4% |
3,050.0 |
-2.7% |
-50.0 |
3,100.0 |
| Adjustments |
-86.1 |
-42.7 |
- |
-128.9 |
- |
-21.0 |
- |
-150.0 |
- |
+50.0 |
-200.0 |
| Total |
1,327.6 |
762.7 |
-6.4% |
2,090.4 |
-3.1% |
809.5 |
+5.2% |
2,900.0 |
-0.9% |
0.0 |
2,900.0 |
Operating Income by Product Group | (Billions of Yen) |
*Figures within parentheses indicate operating income margin.
| |
FY2014 |
|
FY2014 |
| |
Revised Full Year Forecast |
|
Previous
Full Year
Forecast |
| |
1Q to 3Q Accumu-lated Total |
|
Revised
4Q Forecast |
|
Change
(Y on Y) |
| Corre-cted Amount |
| 1H |
3Q |
|
Change
(Y on Y) |
Change
(Y on Y) |
Change
(Y on Y) |
| |
|
Digital Information Equipment |
0.0
(-0.0%) |
-3.5
(-2.9%) |
-
|
-3.5
(-1.0%) |
-
|
-8.4
(-7.9%) |
-
|
-12.0
(-2.7%) |
-
|
-18.0
|
6.0
(1.3%) |
| Communi-cations |
7.5
(6.7%) |
8.2
(11.5%) |
+62.2%
|
15.8
(8.6%) |
5.6-fold
|
-1.8
(-3.3%) |
-
|
14.0
(5.8%) |
3.6-fold
|
0.0
|
14.0
(5.8%) |
| Digital Information Equipment |
7.5
(2.3%) |
4.7
(2.4%) |
-44.6%
|
12.2
(2.3%) |
+31.2%
|
-10.2
(-6.3%) |
-
|
2.0
(0.3%) |
-84.4%
|
-18.0
|
20.0
(2.8%) |
Health and Environ-
mental Equipment |
7.7
(4.8%) |
4.2
(5.5%) |
-25.1%
|
12.0
(5.0%) |
-21.8%
|
5.9
(6.7%) |
+5.7%
|
18.0
(5.5%) |
-14.4%
|
-1.0
|
19.0
(5.6%) |
| Energy Solutions |
-0.2
(-0.2%) |
-1.6
(-3.0%) |
-
|
-1.9
(-1.0%) |
-
|
-3.0
(-3.7%) |
-
|
-5.0
(-1.8%) |
-
|
-8.0
|
3.0
(1.0%) |
| Business Solutions |
15.9
(9.7%) |
7.6
(9.0%) |
+25.2%
|
23.6
(9.4%) |
+6.9%
|
6.3
(7.1%) |
-24.5%
|
30.0
(8.8%) |
-1.8%
|
0.0
|
30.0
(8.8%) |
| Product Business |
30.9
(3.9%) |
15.0
(3.7%) |
-42.8%
|
45.9
(3.8%) |
-26.6%
|
-0.9
(-0.2%) |
-
|
45.0
(2.7%) |
-53.5%
|
-27.0
|
72.0
(4.3%) |
| |
LCDs |
20.8
(4.5%) |
11.4
(4.8%) |
-55.9%
|
32.2
(4.6%) |
-6.9%
|
7.7
(2.8%) |
+11.7%
|
40.0
(4.1%) |
-3.8%
|
-15.0
|
55.0
(5.5%) |
Electronic
Devices |
-2.4
(-1.6%) |
2.6
(1.7%) |
-37.5%
|
0.1
(0.1%) |
-98.3%
|
2.8
(2.1%) |
-
|
3.0
(0.7%) |
-8.1%
|
0.0
|
3.0
(0.7%) |
| Device Business |
18.3
(3.0%) |
14.1
(3.6%) |
-53.3%
|
32.4
(3.2%) |
-26.5%
|
10.5
(2.6%) |
14.8-fold
|
43.0
(3.0%) |
-4.1%
|
-15.0
|
58.0
(4.1%) |
| Sub Total |
49.2
(3.5%) |
29.1
(3.6%) |
-48.4%
|
78.4
(3.5%) |
-26.5%
|
9.5
(1.2%) |
-72.5%
|
88.0
(2.9%) |
-37.9%
|
-42.0
|
130.0
(4.2%) |
| Adjustments |
-20.0 |
-7.1 |
- |
-27.1 |
- |
-10.8 |
- |
-38.0 |
- |
-8.0 |
-30.0 |
| Total |
29.2
(2.2%) |
22.0
(2.9%) |
-53.8%
|
51.2
(2.5%) |
-37.1%
|
-1.2
(-0.2%) |
-
|
50.0
(1.7%) |
-53.9%
|
-50.0
|
100.0
(3.4%) |
From the third quarter of fiscal 2014, to make the profit situation for each business easier to understand, Digital Information Equipment is shown as two separate businesses: Digital Information Equipment, whose main product is LCD TVs, and Communications, whose main products are mobile phones and smartphones.
Looking at sales by product group for the third quarter of fiscal 2014, sales were up in Business Solutions and Electronic Devices, while other product groups showed lower sales compared with the same period last year.
Forecasts for the full year have been revised for all product groups except Communications and Business Solutions.
Operating income for the third quarter of fiscal 2014 increased for Communications and Business Solutions, while Digital Information Equipment and Energy Solutions were in the red. Furthermore, operating income fell in Health and Environmental Equipment, LCDs, and Electronic Devices.
The operating income forecast for the full year has been revised for the four product groups other than Communications, Business Solutions, and Electronic Devices. Especially, significant revisions were made in Digital Information Equipment, Energy Solutions, and LCDs. The reasons for the worsening performance in these three product groups and our policies to remedy the situation will be described in the Sales and Operating Income by Product Group.
