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May 14, 2010

MISUMI Group FY2009 Consolidated Business Performance

Sales and profits down on recession effects felt in the first half

Today, MISUMI Group Inc. announced its consolidated financial results through FY2009 (April 1, 2009, to March 31, 2010). Major performance measures are as follows.

 

FY2008

FY2009

Change

 

Million Yen

Million Yen

%

Net Sales

110,041

89,180

-19.0

Operating Income

11,016

8,408

-23.7

Net Income

4,686

3,885

-17.1

Earnings per Share

¥52.89

¥43.84

-¥9.05

Dividends per Share

¥13

¥10

-¥3

<Highlights of FY2009 consolidated financial results>

1.Sales and profits down on recession effects felt in the first half

  • Both sales and profits declined in FY2009 (April 1, 2009, to March 31, 2010) compared to the previous year. Net sales were ¥89.1 billion (down 19.0%), operating income was ¥8.4 billion (down 23.7%) and net income was ¥3.8 billion (down 17.1%).
  • In the first half (April to September 2009) business performance deteriorated significantly on the prolonged effects of the economic recession that began in the latter half of the previous fiscal year. In the second half, sales were strong thanks to a recovery in performance in Asia and other countries overseas coupled with a gentle recovery in Japan. Furthermore, MISUMI's efforts to leverage the recession as an opportunity to implement reforms to our earnings structure achieved results greater than planned. As a result, net sales and income on the operating, ordinary and net levels all surpassed our revised plan.

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

    50.6 billion

    -18.8%

    Die Components

    22.7 billion

    -19.9%

    Electronics

    8.0 billion

    -21.4%

    Diversified

    7.6 billion

    -14.3%
  • In the first half, we continued to see restrained capital expenditures and other effects of the recession in all major customer segments. In the second half, the automotive and electronics sectors benefited from a strong recovery mainly in Asia. Regardless, on an annual basis 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.International sales accounted for 24.7% of total sales

  • Sales by geographical region were as follows.

    • Geographical Region

    Net Sales
    (Yen)

    Year-on-Year
    Comparison

    Japan

    68.1 billion

    -22.4%

    Asia

    15.3 billion

    -3.9%

    North & South America

    3.3 billion

    -8.4%

    Europe

    2.2 billion

    -11.0%
  • International sales accounted for 24.7% of total sales, up 2.4 percentage points year-on-year, due to the recovery in sales in Asia.

4.Annual dividend payout to be ¥10 per share

  • MISUMI plans to pay out annual dividends per share of ¥10 by distributing a year-end dividend of ¥8 per share following the interim dividend of ¥2 per share paid out already.
    MISUMI's dividend policy is 20% of consolidated net income, but in FY2009 the payout ratio will be 22.8% in consideration of the decline in profits.

5.Forecast for FY2010 consolidated business performance

Consolidated earnings forecast for FY2010 (April 1, 2010, to March 31, 2011)

 

Net Sales

Operating Income

Ordinary Income

Net Income

Earnings per Share

Million Yen

Million Yen

Million Yen

Million Yen

Yen

Consolidated
Full-yearForecast

117,000

12,200

12,300

7,100

80.10
  • In FY2010, we continue to strengthen our organization inside and outside of Japan to further accelerate expansion of our international business. In our FA Business, we have introduced third-party brands to enhance customer convenience with an expanded product lineup. Even after factoring increased costs resulting from these measures targeting future growth, we plan to achieve an operating margin of 10.4%.

[Disclaimer regarding forward-looking statements]

Although forecasts for FY2010 ending March 2011 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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