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February 12, 2010

MISUMI Group FY2009 3Q Cumulative Consolidated Business Performance

Sales in Asia and other international businesses recovering, but cumulative sales and profits down year-on-year

Today, MISUMI Group Inc. announced its cumulative consolidated financial results through FY2009 3Q (April 1 to December 31, 2009). Major performance measures are as follows.

 

FY2008 3Q

FY2009 3Q

  

Cumulative

Cumulative

Change

 

Million Yen

Million Yen

%

Net Sales

90,881

61,872

-31.9

Operating Income

11,296

5,352

-52.6

Net Income

6,504

2,392

-63.2

Earnings per Share

¥73.42

¥27.00

--

<Highlights of FY2009 3Q cumulative consolidated financial results>

1.Sales in Asia and other international businesses recovering, but cumulative sales and profits down year-on-year

  • Both sales and profits continued their decline in the FY2009 3Q cumulative period (April-December 2009) compared to the same period in the previous year. Net sales were ¥61.8 billion (down 31.9%), operating income was ¥5.3 billion (down 52.6%) and net income was ¥2.3 billion (down 63.2%).
  • In the third quarter (October to December 2009), while the economic recovery in Asia accelerated, Europe and the US were limited to a gradual recovery. Supported by demand for exports, Japan’s economy saw improvement, but a full-fledged recovery is still ahead of us, as Japanese companies continue to restrain capital investments.
  • Amidst such an economic environment, sales at the MISUMI Group in the third quarter (October to December 2009) were ¥23.3 billion (down 14.2% year-on-year). Lead by Asia, international sales increased; however, domestic sales declined. Quarterly operating income was ¥3.2 billion (up 11%), driven by the effects from product price revisions undertaken since the beginning of the year and reductions in logistics and order-taking costs. At the same time, we continued to take steps toward future growth by promoting our web-ordering system and web catalogs, strengthening new products and expanding our international business.

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

    34.4 billion

    -33.3%

    Die Components

    16.3 billion

    -30.0%

    Electronics

    5.3 billion

    -36.8%

    Diversified

    5.6 billion

    -22.5%
  • Cumulative sales through the third quarter continued a year-on-year decline, weighed down by the effects of the global economic recession experienced in the first half. In the third quarter (October to December 2009), each segment saw sales decline due to a delayed recovery in Japan.
  • 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.International sales accounted for 24.2% of total sales

  • Sales by geographical region were as follows.

    • Geographical Region

    Net Sales
    (Yen)

    Year-on-Year
    Comparison

    Japan

    46.9 billion

    -34.7%

    Asia

    10.8 billion

    -22.1%

    North & South America

    2.4 billion

    -20.0%

    Europe

    1.6 billion

    -18.8%
  • International sales accounted for 24.2% of total sales, up 3.3 percentage points year-on-year due to the recovery in sales in Asia.

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 Forecast

83,000

6,100

5,800

2,600

29.33

*No change from 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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