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November 13, 2009

MISUMI Group FY2009 2Q Cumulative Consolidated Business Performance

- Sales, profit down due to prolonged effects of economic recession -

Today, MISUMI Group Inc. announced its cumulative consolidated financial results through FY2009 2Q (April 1 to September 30, 2009). Major performance measures are as follows.

 

FY2008 2Q

FY2009 2Q

  

Cumulative

Cumulative

Change

 

Million Yen

Million Yen

%

Net Sales

63,607

38,480

-39.5

Operating Income

8,383

2,119

-74.7

Net Income

5,061

609

-88.0

Earnings per Share

¥57.13

¥6.87

--

<Highlights of FY2009 2Q cumulative consolidated financial results>

1.Sales, profits down due to prolonged effects of economic downturn

  • Both sales and profits declined in the FY2009 2Q cumulative period (April-September) compared to the same period in the previous year. Net sales were ¥38.4 billion (down 39.5%), operating income was ¥2.1 billion (down 74.7%) and net income was ¥0.6 billion (down 88%).
  • In our major customer industries-automotive and electronics-the recovery in production seen in the first quarter continued in the second quarter. However, we expect weakness in capital investments to persist as the economic outlook remains unclear.
  • In the midst of such conditions MISUMI has implemented measures to improve profitability by revising product price structures, bolstering earnings at overseas businesses, cutting costs at logistics and marketing centers and implementing structural reforms at SURUGA SEIKI. At the same time, we have taken steps to achieve growth by introducing our web customer order system and web catalogs, strengthening new product offerings and expanding overseas businesses. As a result of these structural improvements, we beat our cumulative 2Q plan on the operating and net income levels.

2.Sales declined in all business segments

  • Sales by business segment were as follows.

    • Business Segment

    Net Sales
    (Yen)

    Year-on-Year
    Comparison

    Factory Automation

    21.2 billion

    -41.5%

    Die Components

    10.3 billion

    -36.7%

    Electronics

    3.2 billion

    -45.8%

    Diversified

    3.6 billion

    -26.5%
  • In Asia, customers in major segments from automotive to LCD and semiconductor saw a recovery. Meanwhile, a full-scaled recovery remains elusive in Japan, Europe and the US on prolonged stagnation. As a result, sales declined in all business segments.
  • In accordance with a change to the categorization of our business segments effective FY2009 1Q, the Optical-related businesses are now included within Factory Automation businesses. Year-on-year comparisons for Factory Automation are based on the new business segmentations.

3.Overseas businesses accounted for 24% of total sales

  • Sales by geographical region were as follows.

    • Geographical Region

    Net Sales
    (Yen)

    Year-on-Year
    Comparison

    Japan

    29.2 billion

    -40.7%

    Asia

    6.6 billion

    -36.2%

    North & South America

    1.4 billion

    -34.4%

    Europe

    1.0 billion

    -32.7%
  • Overseas sales accounted for 24% of total sales, up 1.5 percentage point year-on-year due to the recovery in Asia.

4.Dividend payout at the end of 2Q to be ¥2

  • The dividend payout for the end of 2Q will be ¥2, in line with our original plan.
  • Retained earnings will be allocated to continued efforts to strengthen our financial position, to improve product and service capabilities for supporting a management base having long-term stability and to bolster our procurement and sales structure both in Japan and overseas.

5.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 Forecast

83,000

6,100

5,800

2,600

29.33

* Revised forecasts announced November 2, 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.

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