News Release

Print

August 12, 2009

MISUMI Group FY2009 1Q Consolidated Business Performance

- Sales and profit down due to economic recession -

MISUMI Group Inc. (Headquarters in Koto-ku, Tokyo. Chairman & CEO: Tadashi Saegusa) announces its consolidated financial results for FY2009 1Q (April 1 to June 30, 2009). Major performance measures are as follows.

 

FY2008 1Q

FY2009 1Q

Change

 

Million Yen

Million Yen

%

Net sales

32,039

17,782

-44.5

Operating income

4,040

242

-94.0

Net income

2,302

-204

-

Earnings per share

¥25.99

-¥2.31

-

<Highlights of FY2009 1Q consolidated financial results>

1.Net sales and profits down due to economic downturn

  • Both sales and profits declined in the April-June quarter. Net sales were ¥17.7 billion (down 44.5% compared to the same period in the previous year) and operating income was ¥0.2 billion (down 94.0%). The quarter resulted in a net loss of ¥0.2 billion (a decline of ¥2.5 billion).
  • In the first quarter, the decline in economic conditions bottomed out as production at our major customers in the automotive and electronics industries started to recover mainly in Asia. Compared to last year, however, levels remain stagnant. Furthermore, capital expenditures continue to shrink substantially. Indicators correlated to our business declined significantly. Japan's machine tool orders shrank 77% year-on-year and Japan's semiconductor production equipment orders fell 59%.
  • Even in the midst of such harsh conditions MISUMI strives to improve profitability by issuing new catalogs with revised price structures, bolster earnings at overseas operations, cut costs at distribution and marketing centers and implement structural reforms at SURUGA SEIKI. At the same time, we continue to implement growth measures to leverage our web customer order system and web catalogs, strengthen new product offerings and expand overseas businesses.

2.Sales declined in all business units

  • Quarterly sales by business segment were as follows.

    • Business segment

    Net sales
    (Yen)

    Year-on-year
    comparison

    Factory Automation

    9.7 billion

    -46.7%

    Die Components

    4.8 billion

    -41.5%

    Electronics

    1.4 billion

    -52.5%

    Diversified

    1.7 billion

    -28.6%
  • Customers in all major segments from automotive to LCD and semiconductor saw production embark on a recovery trend, but continued to exhibit caution on capital investment plans. As a result, sales declined significantly in all of our business units.
  • Beginning this year, we have changed the categorization of our business segments. Optical-related businesses are now included within Factory Automation businesses. Figures for FY2008 Factory Automation are provided using the new business segmentations.

3.Overseas businesses increased to 24.6% of total sales

  • Quarterly sales by geographical region were as follows.

    • Geographical region

    Net sales
    (Yen)

    Year-on-Year
    comparison

    Japan

    13.4 billion

    -46.3%

    Asia

    3.0 billion

    -39.6%

    North & South America

    0.7 billion

    -36.6%

    Europe

    0.5 billion

    -31.4%
  • Sales declined both in Japan and overseas. However, MISUMI continued to aggressively pursue overseas expansion, with sales outside of Japan accounting for 24.6% (up 2.5 percentage points year-on-year) of total quarterly sales.

4.Forecast for FY2009 consolidated business performance

Consolidated earnings forecast for FY2009 （April 1, 2009, to March 31, 2010）

 

Net sales

Operating income

Ordinary income

Net income

Earnings per share

Million Yen

Million Yen

Million Yen

Million Yen

Yen

Consolidated first-half forecast

39,000

1,000

1,000

200

2.26

Consolidated full-year forecast

83,000

5,000

5,000

2,200

24.82

* No change to forecasts announced May 15, 2009.

[Disclaimer regarding forward-looking statements]

Although forecasts for FY2009 ending March 2010 and forward looking statements contained in this material are based on assumptions applied and judged to be reasonable by the Company and its Group reflecting currently available information, including domestic or international economic circumstances, fluctuations in currency exchange rates, and other factors that may influence our business performance, they are subject to risk and uncertainty. Therefore, investors should avoid making their investment decisions based entirely and exclusively on the forward-looking statements herein. Please be advised that our actual business performance may differ substantially from the forecasts indicated in this document.
The material factors that may influence our actual performance include economic circumstances, market trends, and exchange rates, among others.

Page Top