RNS Number:7147Y
TDK Corporation
12 February 2001
Contacts;
TDK Corporation (Tokyo) Corporate Communications Department
Michinori Katayama +81 (3) 5201-7102
TDK U.S.A. Corporation Francis. J. Sweeney +1 (516) 535-2600
TDK UK Limited Ron Matier +44(1737)773773
TOKYO-February 8, 2001 TDK Corporation today announced its consolidated business
results for the third quarter of fiscal 2001, the three-month period ended
December 31, 2000, and the nine-month period from April 1, 2000 through December
31, 2000.
1) - 1. The third quarter results
Consolidated results for the third quarter of fiscal 2001, the three-month
period from October 1, 2000 through December 31, 2000, are as follows:
Yen millions U.S.$ thousands % change
Net sales 180,174 1,566,730 (4.3 %)
Operating profit (%) 18,083 (10.0 %) 157,243 (-4.5 %)
Income before
income taxes (%) 15,552 (8.6%) 135,235 (-13.3 %)
Net income (%) 10,392 (5.8%) 90,365 (-14.5 %)
1) - 2. The nine-month period results
Consolidated results for the nine-month period from April 1, 2000 through
December 31, 2000, are as follows:
Yen millions U.S.$ thousands % change
Net sales 532,200 4,627,826 (6.0 %)
Operating profit (%) 54,532 (10.2%) 474,191 (-1.3 %)
Income before
income taxes (%) 63,383 (11.9%) 551,157 (22.0 %)
Net income (%) 42,997 (8.1 %) 373,887 (21.1 %)
Notes: The amounts shown in U.S. Dollars are converted at the rate of U.S.$1
=Yen 115, the opening rate on the Tokyo Foreign Exchange Market on Dec. 29,
2000.
2) Summary
Consolidated results for the third quarter of fiscal 2001, the three-month
period from October 1, 2000 through December 31, 2000, are as follows:
TDK Corporation today announced its consolidated business results for the third
quarter of fiscal 2001, the three-month period ended December 31, 2000. Net
sales increased 4.3% to Y180,174 million (US$1,566,730 thousand), while
operating profit decreased 4.5% to Y18,083 million (US$157,243 thousand).
Income before income taxes fell 13.3% to Y15,552 million (US$135,235 thousand)
and net income declined 14.5% to Y10,392 million (US$90,365 thousand). Net
income per common share was Y78.08 (US$0.68).
Third quarter average yen exchange rates for the U.S. dollar and euro were
respectively Y110 and Y96 compared with the same period a year ago, as the yen
weakened 5% against the dollar and strengthened 12% against the euro. Since
sales in U.S. dollars account for a greater proportion of total net sales than
those in euro, the conversion into yen had the net effect of raising net sales
by approximately Y2.2 billion and operating profit by approximately Y1.3
billion.
Effective from the current fiscal year, TDK has revised its presentation for
sector information and renamed some product categories.
In the electronic materials and components segment, net sales increased 8.0% to
Y141,922 million (US$1,234,104 thousand).
Within this segment, sales in the electronic materials sector soared 30.1 % to
Y56,062 million (US$487,495 thousand). Sales of multilayer chip capacitors
increased sharply due to expansion of the mobile phone market coupled with
strong demand for use in PCs and peripherals, and digital devices. Orders for
ferrite cores also rose on the back of brisk sales for use in
data-communications devices, notably ADSL (Asymmetric Digital Subscriber Lines)
devices. Growth in the overall marketplace for multilayer chip capacitors during
the third quarter, though enjoying sharp year-on-year sales growth, slowed down
markedly compared with the second quarter, with sales almost flat.
In the electronic devices sector, sales increased 19.3% to Y39,304 million
(US$341,774 thousand). High-frequency components saw strong growth in sales.
This reflected the contribution of high-frequency modules, voltage controlled
oscillators and coils, where production capacity was ramped up in response to
the expanding mobile phone market. Rising demand for inductive devices in the
audio and visual products, office equipment and communications markets led to
higher orders for coils. Moreover, EMC (Electromagnetic Compatibility)
components enjoyed top-line growth, buoyed by expansion in output of office and
communications equipment. Similar to multilayer chip capacitors, however, there
was an evident slowdown in the overall market for inductive devices. Reflecting
this, sales of inductive devices declined marginally, compared with the second
quarter.
Recording devices sales decreased 21.5% to Y39,537 million (US$343,800
thousand). Shipments of new high-areal-recording-density GMR heads, which began
in the latter half of the second quarter, were held back by two factors: a
deterioration in production yields resulting from the advanced technology
required by these heads; and the lingering effects of a six-day suspension in
production due to torrential rains in mid-September 2000. Production yields
improved in the latter half of the third quarter as originally planned. Some
customers nevertheless scaled down their production as a result of a slowdown in
the market for PCs and peripherals, which became evident from the latter half of
November 2000.
Sales in the semiconductors & others sector surged 39.8% to Y7,019 million
(US$61,035 thousand). This primarily reflected the inclusion of anechoic chamber
sales in the third quarter, in addition to brisk sales of semiconductors for LAN
products and set-top box modems.
In the recording media & systems segment, sales declined 7.6% to Y38,252 million
(US$332,626 thousand). Sales of CD-Rs decreased despite increased sales volume
generated by greater demand. This reflected failing prices brought about by an
oversupply of these disks. Audiotapes and videotapes both posted sales declines.
In respect of the former, this was due to lower sales volumes in line with
decreasing demand. Videotapes, meanwhile, saw a sales decrease due to softening
prices, although sales volumes were largely on a par with year-ago levels.
By region, sales in Japan decreased 0.8% to Y61,026 million (US$530,661
thousand). This was attributable to lower sales in recording media & systems and
recording devices which outweighed gains in electronic materials, particularly
multilayer chip capacitors, and electronic devices. In Europe, sales climbed
24.3% to Y30,218 million (US$262,765 thousand) due to strong demand for
multilayer chip capacitors and high-frequency components for GSM and other
mobile phone formats. In Asia (excluding Japan) and Others, sales decreased 9.2%
to Y55,254 million (US$480,469 thousand). Here, as with Japan, strong sales in
the electronic materials and electronic devices sectors could not fully offset
lower sales in recording devices. In the Americas, sales increased 29.1 % to
Y33,676 million (US$292,835 thousand). This figure reflected the effects of the
acquisition of Headway Technologies, Inc. at the end of March 2000 in the
recording devices sector, as well as strong performances from electronic
materials and electronic devices. The overall result was a 7.1 % year-on-year
increase in overseas sales to Y119,148 million (US$1,036,069 thousand).
Overseas sales accounted for 66.1 % of consolidated net sales, up 1.7 percentage
points from 64.4%.
Outlook for the Fiscal Year Ending March 31, 2001
TDK's revised projections for consolidated results in the current fiscal year
are shown below. These figures are based on the following assumptions:
* The estimates assume average yen-U.S. dollar exchange rates of Y107 in the
first half of the fiscal year and Y113 in the second half compared with the
previous second-half projection of Y105.
* In the electronic materials and devices sectors TDK has revised sales
projections downward, particularly for mainstay products such as multilayer
chip capacitors and high-frequency components. This is in response to
inventory reductions by mobile phone and PC-related manufacturers. In the
recording devices sector, TDK foresees declining sales as companies begin to
trim their HDD inventories following a rapid downturn in the PC marketplace
from around December 2000. Overall, TDK expects consolidated net sales to
fall below the previous forecast made in November 2000.
* TDK has lowered its forecast for operating profit in line with the downward
revision of sales of mainstay products.
Consolidated
(yen in millions)
Revised % Change From As of November
Projection FY00 2000
Net sales Y700,000 3.8% Y720,000
Operating profit 66,000 -11.5% 75,000
Income before 72,000 -1.9% 86,000
income taxes
Net income 49,000 -3.4% 59,000
Cautionary Statement About Projections
Projections for the fiscal year ending March 31, 2001 are based on assumptions
and beliefs of TDK and its group companies in accordance with data currently
available. Consequently, these projections should not be relied upon as the
sole basis for evaluating TDK. Actual results may differ substantially from the
projections depending on a number of factors.
The electronics markets in which TDK operates are highly susceptible to rapid
changes. Furthermore, TDK operates not only in Japan, but in many other
countries. As such, factors that can have significant effects on its results
include, but are not limited to, shifts in technology, demand, prices,
competition, economic environments and foreign exchange rates.
CONSOLIDATED
3) Consolidated results for the third quarter of fiscal 2001
(1) Financial highlights
The third quarter The third quarter
of FY2001 of FY2000
(Oct. 1, 2000 - (Oct. 1, 1999 -
Dec. 31, 2000 Dec. 31, 1999) Change
(Yen millions) % (U.S.$ thousands) (Yen millions) % %
Net sales 180,174 100.0 1,566,730 172,804 100.0 4.3
Operating profit 18,083 10.0 157,243 18,943 11.0 -4.5
Income before
income taxes 15,552 8.6 135,235 17,936 10.4 -13.3
Net income 10,392 5.8 90,365 12,149 7.0 -14.5
Net income per
common share and Yen 78.08 U.S.$ 0.68 Yen 91.22
per ADS
Notes:
1. The financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America.
2. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
3. During this consolidated accounting period, the company had 77 subsidiaries
(27 in Japan and 50 overseas). The company also had 10 affiliates whose
financial statements are accounted for by the equity method.
4. In millions of Yen and thousands of U.S. Dollars, except for per share
figures.
5. U.S. $1= Yen 115
(2) Sales breakdown
The third quarter The third quarter
of FY2001 of FY2000
(Oct. 1, 2000 - (Oct. 1, 1999 -
Dec. 31, 2000 Dec. 31, 1999) Change
(Yen millions) % (U.S.$ thousands) (Yen millions) % %
Electronic materials
and components 141,922 78.8 1,234,104 131,401 76.0 8.0
Electronic materials 56,062 31.1 487,495 43,079 24.9 30.1
Electronic devices 39,304 21.8 341,774 32,932 19.1 19.3
Recording devices 39,537 22.0 343,800 50,371 29.1 -21.5
Semiconductors &
Others 7,019 3.9 61,035 5,019 2.9 39.8
Recording media &
systems 38,252 21.2 332,626 41,403 24.0 -7.6
Total sales 180,174 100.0 1,566,730 172,804 100.0 4.3
Overseas sales 119,148 66.1 1,036,069 111,258 64.4 7.1
Notes:
1. Effective from the fiscal year ending March 31, 2001, certain products
that had been included in the Semiconductors & Others sector are now
included in the Recording media & systems segment. Sales in the third
quarter of the previous fiscal year have been restated accordingly.
2. In millions of Yen and thousands of U.S. Dollars.
3. U.S.$1 =Yen 115
CONSOLIDATED
4) Consolidated results for the nine-month period from April 1, 2000
through December 31, 2000.
(1) Financial highlights
The nine-month period of FY2001
(April 1, 2000 - Dec. 31, 2000)
(Yen millions) % (U.S.$ thousands)
Net sales 532,200 100.0 4,627,826
Operating profit 54,532 10.2 474,191
Income before
income taxes 63,383 11.9 551,157
Net income 42,997 8.1 373,887
Net income per
common share and Yen 323.04 U.S.$ 2.81
per ADS
The nine-month period of FY2000 change
(April 1, 1999 - Dec. 31, 1999)
(Yen millions) % %
Net sales 502,291 100.0 6.0
Operating profit 55, 251 11.0 -1.3
Income before
income taxes 51,967 10.3 22.0
Net income 35,505 7.1 21.1
Net income per
common share and Yen 266.58
per ADS
Notes:
1. The financial statements are prepared in conformity with accounting
principles generally accepted in the United States of America.
2. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
3. During this consolidated accounting period, the company had 77 subsidiaries
(27 in Japan and 50 overseas). The company also had 10 affiliates whose
financial statements are accounted for by the equity method.
4. In millions of Yen and thousands of U.S. Dollars, except for per share
figures.
5. U.S.$1 =Yen 115
(2) Sales breakdown
The nine-month period The nine-month period
of FY 2001 of FY 2000
(April 1, 2000 - (April 1, 1999 -
Dec. 31, 2000) Dec. 31, 1999)
(Yen (U.S.$ (Yen Change
millions) % thousands) millions) % %
Electronic materials
and components 431,161 81.0 3,749,226 390,357 77.7 10.5
Electronic materials 165,385 31.1 1,438,130 127,331 25.3 29.9
Electronic devices 114,372 21.5 994,539 95,565 19.0 19.7
Recording devices 131,294 24.6 1,141,687 151,586 30.2 -13.4
Semiconductors &
Others 20,110 3.8 174,870 15,875 3.2 26.7
Recording media
& systems 101,039 19.0 878,600 111,934 22.3 -9.7
Total sales 532,200 100.0 4,627,826 502,291 100.0 6.0
Overseas sales 357,694 67.2 3,110,383 325,952 64.9 9.7
Notes:
1. Effective from the fiscal year ending March 31, 2001, certain products that
had been included in the Semiconductors & others sector are now included in
the Recording media & systems segment. Sales in the nine-month period of the
previous fiscal year have been restated accordingly.
2. Overseas sales for the first half of FY2001, included in the FY2001
nine-month period sales results, have been revised ( see P 9 " 7 ) Sales by
Region " for details).
3. In millions of Yen and thousands of U.S. Dollars.
4. U.S.$l=Yen 115
CONSOLIDATED
5) Statements of income
The third quarter
The third quarter The third quarter
of FY 2001 of FY 2000
(Oct l, 2000 - (Oct 1, 1999 -
Dec. 31,2000) Dec 31, 1999) Change
(Yen (US$ in (Yen
million) % thousands) millions) % %
Net sales 180,174 100.0 1,566,730 172,804 100.0 4.3
Cost of sales 127,894 71.0 1,112,122 122,115 70.6 4.7
Gross profit 52,280 29.0 454,608 50,689 29.4 3.1
Selling, general and
administrative expenses 34,197 19.0 297,365 31,746 18.4 7.7
Operating profit 18,083 10.0 157,243 18,943 11.0 -4.5
Other Income (deductions):
Interest and
dividend Income 1,167 10,148 1,072
Interest expense (447) (3,887) (117)
Gain on sale of Investment
securities - 68
Loss on Impairment of
investment securities (3,257) (28,322) -
Foreign exchange
gain (loss) 198 1,722 (1,549)
Other, net (192) (1,669) (481)
Other Income
(deductions) total (2,531) -1.4 (22,008) (1,007) -0.6
Income before
Income taxes 15,552 8.6 135,235 17,936 10.4 -13.3
Income taxes 4,960 2.7 43,131 5,714 3.3 -13.2
Income before minority
interests 10,592 5.9 92,104 12,222 7.1 -13.3
Minority interests (200) -0.1 (1,739) (73) -0.1
Net income 10,392 5.8 90,365 12,149 7.0 -14.5
Net Income per
common share Yen 78.08 US$ 0.68 Yen 91.22
Average common shares
outstanding 133,103 thousands 133,190 thousands
Notes:
1. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
2. In millions of Yen and thousands of U.S. Dollars, except for per share
figures.
3. U.S.$1 =Yen 115
4. Statements of income for the third quarter of fiscal 2000 and 2001 are
unaudited by independent auditors.
The nine-month period
The nine month The nine month change
period of FY2001 period of FY2000
(April l,2000 - (April 1, 1999 -
Dec. 31,2000) Dec 31, 1999)
(Yen (U.S.$ (Yen
millions) % thousands) millions) % %
Net sales 532,200 100.0 4,627,826 502,291 100.0 6.0
Cost of sales 377,462 70.9 3,282,278 354,006 70.5 6.6
Gross profit 154,738 29.1 1,345,548 148,285 29.5 4.4
Selling, general and
administrative expenses 100,206 18.9 871,357 93,034 18.5 7.7
Operating profit 54,532 10.2 474,191 55,251 11.0 -1.3
Other income (deductions):
Interest and dividend
income 3,753 32,635 3,722
Interest expense (797) (6,930) (501)
Gain on sale of investment
securities 917 7,974 1,320
Gain on exchange of
investment securities 3,351 29,139 -
Loss on impairment of
investment securities (3,257) (28,322) -
Gain on contribution of
investment securities
to pension trust 12,518 108,852 -
Write-oft of intangible
assets (4,394) (38,209) -
Foreign exchange
gain (loss) (1,343) (11,678) (6,220)
Other,net (1,897) (16,495) (1,605)
Other income (deductions)
total 8,851 1.7 76,966 (3,284) -0.7
Income before income
taxes 63,383 11.9 551,157 51,967 10.3 22.0
Income taxes 19,807 3.7 172,235 16,243 3.2 21.9
Income before minority
interests 43,576 8.2 378,922 35,724 7.1 22.0
Minority Interests (579) -0.1 (5,035) (219)
Net Income 42,997 8.1 373,887 35,505 7.1 21.1
Net Income per common
share Yen 323.04 US$ 2.81 Yen 266.58
Average common shares
outstanding 133,103 thousands 133,190 thousands
Notes:
1. The figures for net income per common share are calculated based upon the
weighted average number of shares of common stock (the total outstanding
number).
2. In millions of Yen and thousands of U.S. Dollars, except for per share
figures.
3. U.S.$1 = Yen 115
4. Statements of income for the nine-month period of fiscal 2000 and 2001 are
unaudited by independent auditors.
CONSOLIDATED
6) Balance sheets
ASSETS
As of Dec. 31 As of Sep. 30, Change
2000 2000
(Yen (U.S. $ (Yen
millions) % thousands) millions) % %
Current assets 455,861 56.9 3,964,009 456,449 58.1 -0.1
Cash and cash equivalents 139,382 1,212,017 155,008
Marketable securities 2,035 17,696 4,817
Net trade receivables 176,746 1,536,922 164,613
Inventories 107,765 937,087 97,505
Prepaid expenses and
other current assets 29,933 260,287 34,506
Investments and advances 23,558 2.9 204,852 21,664 2.8 8.7
Net property, plant, and
equipment 266,202 33.2 2,314,800 253,018 32.2 5.2
Other assets 55,707 7.0 484,409 54,318 6.9 2.6
TOTAL 801,328 100.0 6,968,070 785,449 100.0 2.0
LIABILITIES AND STOCKHOLDERS' EQUITY
As of Dec. 31 As of Sep. 30, Change
2000 2000
(Yen (U.S. $ (Yen
millions) % thousands) millions) % %
Current liabilities 152,529 19.0 1,326,339 155,244 19.7 -1.7
Short-term debt 2,538 22,069 2,393
Trade payables 73,166 636,226 75,453
Accrued expenses and
other current liabilities 53,358 463,983 52,356
Income taxes 23,467 204,061 25,042
Long-term debt, excluding
current installments 1,092 0.2 9,496 1,172 0.2 -6.8
Retirement and severance
benefits and others 17,033 2.1 148,113 17,632 2.2 -3.4
Total liabilities 170,654 21.3 1,483,948 174,048 22.1 -2.0
Minority interests 3,119 0.4 27,122 2,893 0.4 7.8
Common stock 32,641 283,835 32,641
Additional paid-in capital 63,051 548,269 63,051
Legal reserve 13,407 116,583 13,407
Retained earnings 555,181 4,827,661 548,780
Accumulated other
comprehensive income
(loss) (34,059) (296,165) (46,703)
Treasury stock (2,666) (23,183) (2,668)
Total stockholders' equity 627,555 78.3 5,457,000 608.508 77.5 3.1
TOTAL 801,328 100.0 6,968,070 785,449 100.0 2.0
1. In millions of Yen and thousands of U.S. Dollars.
2. U.S.$11 = Yen 115
3. Balance sheets as of Dec. 31, 2000 are unaudited by independent auditors.
CONSOLIDATED
7) Sales by Region
The Third Quarter
The third quarter The third quarter change
of FY2001 of FY2000
(Yen % (U.S.$ (Yen % %
millions) thousands) millions)
Americas 33,676 18.7 292,835 26,080 15.1 29.1
Europe 30,218 16.8 262,765 24,301 14.1 24.3
Asia and others 55,254 30.6 480,469 60,877 35.2 -9.2
Overseas sales
total 119,148 66.1 1,036,069 111,258 64.4 7.1
Japan 61,026 33.9 530,661 61,546 35.6 -0.8
Net sales 180,174 100.0 1,566,730 172,804 100.0 4.3
Notes:
1. Sales by region are classified by geographic areas of the buyer.
2. In millions of Yen and thousands of U.S. Dollars.
3. U.S.$1 =Yen 115
The nine-month period
The nine-month period The nine-month period change
of FY2001 of FY2000
(Yen % (U.S.$ (Yen
millions) % thousands) millions) % %
Americas 96,565 18.1 839,696 79,860 15.9 20.9
Europe 75,950 14.3 660,435 63,979 12.7 18.7
Asia and others 185,179 34.8 1,610,252 182,113 36.3 1.7
Overseas sales
total 357,694 67.2 3,110,383 325,952 64.9 9.7
Japan 174,506 32.8 l,517,443 176,339 35.1 -1.0
Net sales 532,200 100.0 4,627,826 502,291 100.0 6.0
Notes:
1. Sales by region are classified by geographic areas of the buyer.
2. Sales to the Americas and Japan for the first half of FY2001, included in
the above shown FY2001 nine-month period sales results, have been revised
(7,102 million yen previously included in Japan has been reclassified to the
Americas).
3. In millions of Yen and thousands of U.S. Dollars.
4. U.S.$l = Yen 115
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