Financial Summary
3Q of the Year Ending March 2021 Net sales were 81.2 billion yen, up 2% Q/Q, and operating income was 11.2 billion yen, largely in line with the previous quarter.
Strong demand for products used in smartphones and in automobiles continued, and sales and operating income both outperformed the forecasts made in November 2020.
Net sales and operating income recorded all-time highs on the cumulative nine-month basis.
Earnings Forecast for the Year Ending March 2021 The full-year results forecasts published in November 2020 have been revised upward.
Net sales are projected to increase 5% Y/Y to 295.0 billion yen, and operating income is projected to increase 2% Y/Y to 38.0 billion yen. TAIYO YUDEN will aim for all-time high net sales, operating income, and net income attributable to owners of parent company.
©TAIYO YUDEN 2017
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Overview of Earnings for 3Q of the Year Ending March 2021
Net sales were 81.2 billion yen, up 2% Q/Q, and operating income was 11.2 billion yen, largely in line with the previous quarter.
By market sector, demand for products for use in smartphones and automobiles was strong continuing on from the second quarter, so sales and operating income both outperformed the forecasts made in November 2020.
As a result, net sales and operating income recorded all-time highs on the cumulative nine-month basis.
Earnings Forecast for the Year Ending March 2021
The full-year results forecasts published in November 2020 have been revised upward. TAIYO YUDEN will aim for net sales of 295.0 billion yen, up 5% Y/Y, and operating income of 38.0 billion yen, up 2% Y/Y.
If achieved, net sales and operating income are projected to record all-time highs on the full year basis.
Impact of COVID-19
The impact on TAIYO YUDEN's business activities has practically disappeared (as of February 8)
We are closely monitoring production trends at client companies and final demand for equipment, etc.
No impact. There were some problems with procurement from suppliers, but we addressed this by changing procurement channels and utilizing current inventory, etc.
There is still some impact, such as lengthening distribution lead times and increasing distribution costs. We are addressing this through transportation using alternative flights and routes.
All production sites in Japan and overseas have been operating as normal since June. It is estimated 1Q net sales decreased 7.0 billion yen due to restrictions on operations from March - May.
©TAIYO YUDEN2017
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Country | Company | Main production items | Operation status | |||
As of May 12, 2020 | As of Aug 7, 2020 | As of Nov 9, 2020 | As of Feb 8, 2021 | |||
Philippines | TAIYO YUDEN (PHILIPPINES) | Inductors | Operating (with constraints) | Operating as normal (from June) | Operating as normal | Operating as normal |
Malaysia | TAIYO YUDEN (SARAWAK) | Multilayer ceramic capacitors | Operating (with constraints) | Operating as normal (from mid-May) | Operating as normal | Operating as normal |
Japan, Korea, China, etc. | Companies other than above | - | Operating as normal | Operating as normal | Operating as normal | Operating as normal |
There have been no major changes from the situation as of November last year with regard to COVID-19, and its impact on TAIYO YUDEN's business activities has practically disappeared.
On the sales front, customer production activities have generally returned to normal.
We will continue to gather information on customer production trends, final demand for equipment and so forth.
In procurement activities, there have been no major issues.
Although there were some components with procurement issues for a while, we addressed this by changing procurement channels and utilizing current inventory.
In distribution, issues such as lengthening of some distribution lead times and increases in distribution costs have continued because, even though the number of flights has increased, the cargo volume has also risen.
We are taking measures to minimize the impact, such as using alternative flights and routes.
In production, all plants in Japan and overseas have been continuing production activities as normal since June.
Due to constraints on operations at subsidiaries in the Philippines and Malaysia between March and May, it is estimated net sales declined 7.0 billion yen in the first quarter, but there is no such impact from the second quarter onwards.
3Q - Consolidated Financial Results (Q/Q)
¥ in million | FYE Mar 31, 2021 2Q (01 Jul 2020 - 30 Sep 2020) | FYE Mar 31, 2021 3Q (01 Oct 2020 - 31 Dec 2020) | Change Q/Q | |||
Net sales | 79,728 | 100.0% | 81,226 | 100.0% | 1,497 | 1.9% |
Operating income | 11,203 | 14.1% | 11,199 | 13.8% | (4) | (0.0)% |
Ordinary income | 10,812 | 13.6% | 11,422 | 14.1% | 609 | 5.6% |
Net income attributable to owners of parent company | 6,900 | 8.7% | 8,383 | 10.3% | 1,483 | 21.5% |
Yen to USD average exchange rate | 106.82 yen | 105.15 yen | 1.67 yen Appreciated | |||
Impact of exchange rate fluctuation | (0.4) billion yen on net sales, (0.6) billion yen on operating income * Including the impact of currencies other than US dollars | |||||
R&D expenses | 3,219 | 3,200 | (18) | (0.6)% | ||
Capital investment | 10,112 | 7,160 | (2,952) | (29.2)% | ||
Depreciation expenses | 7,277 | 7,558 | 281 | 3.9% |
©TAIYO YUDEN 2017
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The financial results for the third quarter of the fiscal year ending March 2021 recorded net sales of 81.2 billion yen, operating income of 11.2 billion yen, and ordinary income of 11.4 billion yen.
As extraordinary loss was lower compared to the second quarter, net income attributable to owners of parent company was 8.4 billion yen, an increase of 22%.
The average exchange rate during the third quarter was US$1:¥105.15, an appreciation of ¥1.67 from the second quarter of the fiscal year.
The impact from this was a decrease of 0.4 billion yen in net sales and 0.6 billion yen in operating income.
The appreciation of currencies in Asia, including China and Korea, had a slightly bigger impact on operating income.
R&D expenses were 3.2 billion yen, practically the same as in the previous quarter. Capital investment was 7.2 billion yen, down 3.0 billion yen Q/Q.
Depreciation expenses were 7.6 billion yen, up 0.3 billion yen Q/Q.
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Taiyo Yuden Co. Ltd. published this content on 08 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 February 2021 03:59:03 UTC.