|
Correcting and Replacing SANYO
Third Quarter Financial Results
for Fiscal Year 2005 |
|
 |
 |
 |
|
TOKYO----Feb. 1, 2006--Please replace the release dated Jan. 31,
2006 with the following corrected version due to multiple revisions.
(Revisions are in Table 5. Consolidated Statement of Cash Flows (Unaudited).
Also see fourth graph from the bottom under the subhead Cash Flows.)
The corrected release reads: |
| SANYO Third Quarter Financial Results
for Fiscal Year 2005 |
|
 |
|
|
|
| Tokyo, January 31, 2006 --- SANYO Electric Co., Ltd. today announced
its consolidated results for the third quarter ended December 31,
2005 (October 1, 2005 to December 31, 2005). |
| 1. Consolidated results (Unaudited) |
|
|
|
|
|
| (1) For the three-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
| |
For the Third quarter
ended
December 31, 2005 |
For the Third quarter
ended
December 31, 2004 |
Change from the
previous quarter |
| Net Sales |
611,535 |
620,646 |
-1.5 % |
| Operating income (loss) |
16,324
(2.7 %) |
10,357
(1.7 %) |
57.6% |
| Income (Loss) before income taxes and minority interests |
12,648
(2.1 %) |
(11,897)
(-1.9 %) |
- |
| Net income (loss) |
6,218
(1.0 %) |
(17,617)
(-2.8 %) |
- |
| Net income (loss) per share |
3.35 Yen |
(9.50 Yen) |
|
|
(2) For the nine-month period ended December 31, 2005
|
(Unit: Millions of Yen) |
| |
For the nine-month period
From Apr. 1, 2005
To Dec. 31, 2005 |
For the nine-month period
From Apr. 1, 2004
To Dec. 31, 2004 |
Change |
| Net Sales |
1,799,018 |
1,886,197 |
-4.6% |
| Operating income |
(10,195)
(-0.6%) |
49,351
( 2.6 %) |
- |
Income (loss) before
income taxes and
minority interest |
(111,226)
(-6.2%) |
6,400
( 0.3 %) |
- |
| Net income (loss) |
(136,307)
(-7.6%) |
(14,216)
(-0.8 %) |
- |
Net income (loss)per
share |
(73.50 Yen) |
(7.66 Yen) |
|
|
1. The number of consolidated subsidiaries
157, and affiliates 42 (equity method)
2. SANYO’s consolidated financial statements are based on
U.S. GAAP standard
3. Operating profit and segment-based information is prepared using
Japan’s standard.
|
| 2. Consolidated Sales by Business
Group Category (Unaudited) |
|
|
|
|
|
| (1) For the three-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
Product category
|
For the Third quarter
ended
December 31, 2005 |
For the Third quarter
ended
December 31, 2004 |
Change |
|
Amount |
Ratio to
total |
Amount |
Ratio to
total |
Amount |
Ratio |
| Consumer |
303,483 |
49.6% |
316,036 |
50.9% |
(12,553) |
-4.0% |
| Commercial |
58,669 |
9.6% |
55,030 |
8.9% |
3,639 |
6.6% |
| Component |
230,556 |
37.7% |
230,413 |
37.1% |
143 |
0.1% |
| Others |
18,827 |
3.1% |
19,167 |
3.1% |
(340) |
-1.8% |
| Total |
611,535 |
100.0% |
620,646 |
100.0% |
(9,111) |
-1.5% |
| Breakdown |
Domestic
sales |
283,723 |
46.4% |
309,098 |
49.8% |
(25,375) |
-8.2% |
Overseas
sales |
327,812 |
53.6% |
311,548 |
50.2% |
16,264 |
5.2% |
|
| (2) For the nine-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
| Product category |
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005 |
For the nine-month
period
From Apr. 1, 2004
To Dec. 31, 2004 |
Change |
Amount |
Ratio to
total |
Amount |
Ratio to
total |
Amount |
Ratio |
| Consumer |
866,307 |
48.2% |
935,700 |
49.6% |
(69,393) |
-7.4% |
| Commercial |
176,327 |
9.8% |
161,495 |
8.6% |
14,832 |
9.2% |
| Component |
680,615 |
37.8% |
719,316 |
38.1% |
(38,701) |
-5.4% |
| Others |
75,769 |
4.2% |
69,686 |
3.7% |
6,083 |
8.7% |
| Total |
1,799,018 |
100.0% |
1,886,197 |
100.0% |
(87,179) |
-4.6% |
| Breakdown |
Domestic
sales |
865,782 |
48.1% |
957,452 |
50.8% |
(91,670) |
-9.6% |
Overseas
sales |
933,236 |
51.9% |
928,745 |
49.2% |
4,491 |
0.5% |
|
| |
| 3. Consolidated Statements of Income
(Unaudited) |
|
|
|
|
|
| (1) For the three-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
| Items |
For the Third
quarter
ended
December 31, 2005 |
For the Third
quarter
ended
December 31, 2004 |
Change |
Amount |
Ratio to net
sales |
Amount |
Ratio to net
sales |
Amount |
Ratio |
Net sales
Operating revenue
Sales and operating
revenue
Cost of sales
Selling, general and
administrative expenses
Operating income
Other income
[Interest and Dividends]
[Other]
Other expenses
[Interest]
[Other]
Income (Loss) before
income taxes
Income taxes |
611,535
36,875
648,410
525,726
106,360
|
100.0%
6.0%
106.0%
85.9%
17.4% |
620,646
25,554
646,200
535,899
99,944 |
100.0%
4.1%
104.1%
86.3%
16.1% |
(9,111)
11,321
2,210
(10,173)
6,416 |
-1.5%
44.3%
0.3%
-1.9%
6.4% |
16,324
19,746
[1,507]
[18,239]
23,422
[5,605]
[17,817]
|
2.7%
3.2%
3 .8%
|
10,357
6,049
[981]
[5,068]
28,303
[3,925]
[24,378]
|
1.7%
1.0%
4.6%
|
5,967
13,697
[526]
[13,171]
(4,881)
[1,680]
[(6,561)]
|
57.6%
226.4%
-17.2%
|
| 12,648
4,581 |
2.1%
0.8% |
(11,897)
4,114 |
-1.9%
0.7%
|
24,545
467 |
-
11.4% |
Income (Loss) before
minority interests
Minority interests |
8,067
1,849 |
1.3%
0.3% |
(16,011)
1,606 |
-2.6%
0.2% |
24,078
243 |
-
15.1% |
| Net income (loss) |
6,218 |
1.0% |
(17,617) |
(2.8)% |
(23,835) |
- |
|
| (2)For the nine-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
Items |
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005 |
For the nine-month
period
From Apr. 1, 2004
To Dec. 31, 2004 |
Change
|
|
Amount |
Ratio to net
sales |
Amount |
Ratio to net
sales |
Amount |
Ratio |
Net sales
Operating revenue
Sales and operating
revenue
Cost of sales
Selling, general and
administrative expenses
Operating income
Other income
[Interest and Dividends]
[Other]
Other expenses
[Interest]
[Other]
Income (Loss) before
income taxes
Income taxes |
1,799,028
100,741
1,899,759
1,595,830
314,124
|
100.0%
5.6%
105.6%
88.7%
17.5%
|
1,886,197
76,751
1,962,948
1,609,266
304,331 |
100.0%
4.1%
104.1%
85.3%
16.2% |
(87,179)
23,990
(63,189)
(13,436)
9,793 |
-4.6%
31.3%
-3.2%
-0.8%
3.2% |
(10,195)
44,207
[5,631]
[38,576]
145,238
[16,370]
[128,868]
|
-0.6%
2.5%
8.1%
|
49,351
22,200
[3,970]
[18,230]
65,151
[11,972]
[53,179]
|
2.6%
1.2%
3.5%
|
(59,546)
22,007
[1,661]
[20,346]
80,087
[4,398]
[75,689]
|
-
99.1%
122.9%
|
| (111,226)
31,784 |
-6.2%
1.8% |
6,400
16,962 |
0.3%
0.9% |
(117,626)
14,822 |
-
87.4% |
Income (Loss) before minority interests
Minority interests |
(143,010)
(6,703) |
-7.9%
-0.4
|
(10,562)
3,654 |
-0.6%
0.2 |
(132,448)
(10,357) |
-
- |
| Net income (loss) |
(136,307) |
-7.6% |
(14,216) |
-0.8% |
(122,091) |
- |
|
| 4. Consolidated Balance Sheet (Unaudited) |
|
|
|
|
|
| (Unit: Millions of Yen) |
Items |
As of
Dec. 31, 2005 |
As of
Sep. 30, 2005 |
Increase
(Decrease) |
|
As of
Mar. 31, 2005 |
(Assets)
Current Assets
Cash and Time deposits
Receivables:
Notes and accounts
Finance receivables
Inventories
Other
Current assets total
Investment and advances
Property, plant & equipment
Other |
249,444
527,615
-
386,734
83,869
1,247,662
205,613
566,066
71,120
|
242,137
457,643
245,644
386,112
69,442
1,400,978
235,335
628,995
231,770
|
7,307
69,972
(245,644)
622
14,427
(153,316)
(29,722)
(62,929)
(160,650)
|
294,982
477,687
261,639
383,976
75,082
1,493,366
250,991
611,231
245,089
|
| Total Assets |
2,090,461 |
2,497,078 |
(406,617) |
2,600,677 |
(Liabilities)
Current liabilities
Short-term borrowings
Notes and accounts
Other
Total current liabilities
Long-term debt
Accrued pension and
severance costs
Total liabilities
Minority interests in
Consolidated subsidiaries
(Stockholders’ equity)
Common stock
Additional paid-in capital
Retained earnings
Accumulated other
comprehensive loss
Treasury stock
Total stockholders’ equity |
404,754
478,037
301,614
1,184,405
504,927
201,788
1,891,120
17,656
172,242
336,038
(220,648)
(98,533)
(7,414)
181,685
|
561,990
454,140
315,038
1 ,331,168
737,872
212,277
2,281,317
50,059
172,42
336,030
(226,867)
(108,316)
(7,387)
165,702
|
(157,236)
23,897
(13,424)
(146,763)
(232,945)
(10,489)
(390,197)
(32,403)
-
8
6,219
9,783
(27)
15,983
|
547,632
503,789
315,107
1,366,528
679,728
216,190
2,262,446
49,963
172,242
336,035
(84,342)
(128,310)
(7,357)
288,268
|
| Total liabilities,
minority interests and
stockholders’ equity |
2,090,461 |
2,497,078 |
(406,617) |
2,600,677 |
|
| 5. Consolidated Statement of Cash
Flows (Unaudited) |
|
|
|
|
|
| (1)For the three-month ended December 31, 2005 |
(Unit: Millions of Yen) |
| Items |
For the Third quarter
ended
December 31, 2005 |
For the Third quarter
ended
December 31, 2004 |
1. Cash flows from operating activities
Net income (loss)
Depreciation and amortization
Increase in receivables
(Increase) Decrease in inventories
Increase in notes & accounts payable
Other, net |
6,218
32,877
(66,781)
3,616
29,045
(20,706)
|
(17,617)
27,719
(32,364)
(20,506)
6,063
(32,208)
|
| Net cash (used) in provided by operating activities |
(15,731) |
(68,913) |
2. Cash flows from investing activities
(Increase) Decrease in short term
& long term investment
Purchase of tangible fixed assets
Proceeds on business transfer
(Payments for) sale of consolidated subsidiaries
Other |
16,248
(6,567)
-
(6,130)
(2,442)
|
(4,792)
(10,234)
17,889
-
(5,781)
|
| Net cash (used) provided by investing activities |
1,109 |
(2,918) |
3. Cash flows from financing activities
Increase in short term borrowing
Decrease in long term debt
Dividends paid
Other |
34,848
(17,426)
(521)
1,796
|
49,249
(55,088)
(5,989)
(62)
|
| Net cash (used) provided by financing activities |
18,697 |
(11,890) |
4. Effect of exchange rate changes on
cash & cash equivalents |
3,232 |
(3,123) |
5. Net (decrease) increase in cash & cash
equivalents |
7,307 |
(86,844) |
6. Cash & cash equivalents of newly
consolidated subsidiaries
7. Cash & cash equivalents at beginning
8. Cash & cash equivalents at end |
-
242,137
249,444 |
1,510
316,427
231,093 |
|
| (2)For the nine-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
| Items |
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005 |
For the nine-month
period
From Apr. 1, 2004
To Dec. 31, 2004 |
1. Cash flows from operating activities
Net income (loss)
Depreciation and amortization
Decrease in fixed assets
Increase in receivables
(Increase) Decrease in inventories
Increase (Decrease) in notes & accounts payable
Other |
(136,307)
99,625
57,438
(15,429)
16,031
(49,741)
(27,191)
|
(14,216)
85,808
-
(17,191)
(60,510)
25,945
(63,722)
|
| Net cash (used) in provided by operating activities |
(55,574) |
(43,886) |
2. Cash flows from investing activities
(Increase) Decrease in short term
& long term investment
Purchase of tangible fixed assets
Proceeds on business transfer
(Payments for) sale of consolidated subsidiaries
Other |
58,817
(59,178)
-
(6,130)
(1,994)
|
(10,737)
(52,225)
17,889
-
(11,705)
|
| Net cash (used) in investing activities |
(8,485) |
(56,778) |
3. Cash flows from financing activities
Increase in short term borrowing
Decrease in long term debt
Dividends paid
Other |
48,568
(53,806)
(1,077)
1,761
|
70,448
(9,339)
(11,852)
(109)
|
| Net cash (used) in financing activities |
(4,554) |
49,148 |
4. Effect of exchange rate changes on
cash & cash equivalents |
6,780 |
(85) |
| 5. Net decrease in cash & cash equivalents |
(61,833) |
(51,601) |
6. Cash & cash equivalents of newly
consolidated subsidiaries
7. Cash & cash equivalents at beginning
8. Cash & cash equivalents at end |
16,295
294,982
249,444 |
5,232
277,462
231,093 |
|
| 6. Consolidated Segment Information
(Unaudited) |
|
|
|
|
|
| (1) For the three-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
Items
|
For the Third quarter
ended
December 31, 2005 |
For the Third quarter
ended
December 31, 2004 |
Change |
Amount |
Component
proportion
ratio |
Amount |
Component
proportion
ratio |
Amount |
Ratio |
Net sales
&
operating
revenue |
Consumer |
305,439 |
46.2% |
319,496 |
48.5% |
(14,057) |
-4.4% |
| Commercial |
59,417 |
9.0% |
55,600 |
8.4% |
3,817 |
6.9% |
| Component |
239,702 |
36.2% |
236,468 |
35.9% |
3,234 |
1.4% |
| Others |
57,091 |
8.6% |
46,761 |
7.2% |
10,330 |
22.1% |
| Sub-total |
661,649 |
100.0% |
658,325 |
100.0% |
3,324 |
0.5% |
Corporate &
eliminations |
(13,239) |
- |
(12,125) |
- |
(1,114) |
- |
Total |
648,410 |
- |
646,200 |
- |
2,210 |
0.3% |
Operating
income |
Consumer |
1,844 |
8.2% |
8,064 |
51.4% |
(6,220) |
-77.1% |
| Commercial |
2,612 |
11.6% |
1,360 |
8.7% |
1,252 |
92.1% |
| Component |
14,094 |
62.4% |
3,111 |
19.8% |
10,983 |
353% |
| Others |
4,023 |
17.8% |
3,148 |
20.1% |
875 |
27.8% |
| Sub-total |
22,573 |
100.0% |
15,683 |
100.0% |
6,890 |
43.9% |
Corporate &
eliminations |
(6,249) |
- |
(5,326) |
- |
(923) |
- |
| Total |
16,324 |
- |
10,357 |
- |
5,967 |
57.6% |
|
| (2) For the nine-month period ended December 31, 2005 |
(Unit: Millions of Yen) |
Items
|
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005 |
For the nine-month
period
From Apr. 1, 2004
To Dec. 31, 2004 |
Change |
Amount |
Component
proportion
ratio |
Amount |
Component
proportion
ratio |
Amount |
Ratio |
Net sales
&
operating
revenue |
Consumer |
872,081 |
44.9% |
947,281 |
47.2% |
(75,200) |
-7.9% |
| Commercial |
179,441 |
9.3% |
163,429 |
8.2% |
16,012 |
9.8% |
| Component |
706,375 |
36.4% |
740,389 |
36.9% |
(34,014) |
-4.6% |
| Others |
182,953 |
9.4% |
153,696 |
7.7% |
29,257 |
19.0% |
| Sub-total |
1,940,850 |
100.0% |
2,004,795 |
100.0% |
(63,945) |
-3.2% |
Corporate &
eliminations |
(41,091) |
- |
(41,847) |
- |
756 |
- |
Total |
1,899,759 |
- |
1,962,948 |
- |
(63,189) |
-3.2% |
|
Operating
income |
Consumer |
(10,210) |
-94.7% |
25,263 |
37.7% |
(35,473) |
- |
| Commercial |
4,606 |
42.7% |
3,548 |
5.3% |
1,058 |
29.8% |
| Component |
7,926 |
73.5% |
26,449 |
39.5% |
(18,523) |
-70.0% |
| Others |
8,457 |
78.5% |
11,737 |
17.5% |
(3,280) |
-27.9% |
| Sub-total |
10,779 |
100.0% |
66,997 |
100.0% |
(56,218) |
-83.9% |
Corporate &
eliminations |
(20,974) |
- |
(17,646) |
- |
(3,328) |
- |
| Total |
(10,195) |
- |
49,351 |
- |
(59,546) |
- |
|
(Notes)
1. Contents of Business Segment
| Consumer: |
TVs, VCRs, DVD Players, LCD Projectors, Audio Equipment, Digital
Cameras, Telephones, Refrigerators, Air Conditioners, Washing
Machines and Microwave Ovens etc.
|
| Commercial: |
Showcases, Package-Type Air Conditioners and Absorption-Type
Chiller / Heaters.
|
| Component: |
Semiconductors, LCDs and Electronic Components, Primary batteries,
Rechargeable batteries and Solar modules.
|
| Others: |
Leasing, Credit, Distribution, Maintenance and Housing. |
2. Basic R&D expenses and corporate office expenses are included
in the item of "Corporate and eliminations" as unallocated
expenses. |
| Business Performance & Financial
Position |
|
|
|
|
|
1. Qualitative information for consolidated business
results
General Overview for Third Quarter Fiscal Year
2005
The global economy in the current period under review has been
steadily recovering. In the U.S., while there has been concern
regarding inflationary pressures caused by a hike in energy
prices etc., there has been an economic expansion. In China,
growing investments in fixed assets have contributed to continued
business growth. In regards to Japan’s economy, ongoing
improved corporate profits and firm private capital investment
lead to a gradual growth of personal consumption. While the
economy has been recovering supported by domestic private
demand, the future trends of the management climate remain
uncertain with concerns like oil prices shifting at a high
level etc.
Under these conditions, SANYO registered a large consolidated
deficit in the last fiscal year after one of its main manufacturing
facilities for semiconductors was struck by a major earthquake
in Niigata in October 2004 and the forecast for this year
will also be a net loss. Under such severe conditions, in
order to increase corporate value and raise employees’
motivation, a reform plan called the ‘SANYO EVOLUTION
PROJECT’ was launched based on SANYO’s new vision
‘Think GAIA’. SANYO aims to push through the Mid-Term
Business Plan by business realignment and rebuilding through
a greater selection and focus of its business portfolio, management
and organizational reforms to improve the cost structure and
improve the financial condition etc.
|
|
Consolidated Results
On Dec. 27, 2005, SANYO transferred a part of its interest in
SANYO Electric Credit Co., Ltd, a consolidated company of SANYO,
to an affiliate company of Goldman Sachs Inc. As a result, SANYO
now holds a 19.13% stake in SANYO Electric Credit Co., Ltd.
Moreover, in this third quarter, SANYO Electric Credit Co.,
Ltd., will be treated as a consolidated company on SANYO’s
statements of income, and at the end of this Fiscal Year will
not be a listed as a consolidated company.
For third quarter fiscal year 2005, consolidated net sales were
611.5 billion yen, a decrease of 1.5% over the same period last
year. Domestic net sales were 283.7 billion yen, a decrease
of 8.2% over the same period last year. Overseas net sales increased
5.2% to 327.8 billion yen over the same period last year. Consumer
segment recorded sales of 303.4 billion yen, a decrease of
4.0% compared with the same period of the previous year despite
increase in digital cameras, owing to decrease in sales of
mobile phones etc.
Commercial segment sales amounted to 586 billion yen, an
increase of 6.6% compared to the same period of the previous
year, due to an increase in overseas sales of large air conditioners
and showcases.
Component segment sales increased 0.1% over the same period
last year to 230.5 billion yen despite decrease in sales for
LCDs due to business restructuring and for optical pickups
due to price declines, owing to great demand for solar modules
and rechargeable batteries like Lithium ion batteries.
Operating income was 16.3 billion yen, an increase of 57.6%
over the same period last year, owing to cost reduction facilitated
by improvement effects of cost of sales etc. Income before
income taxes and minority interests was 24.5 billion yen higher
than the same period last year at 12.6 billion yen owing to
gain on sale of investment securities and the occurrence of
losses caused due to the earthquake over the same period last
year. Net income after deducting provision for income tax
and minority interests is 6.2 billion yen.
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2. Financial Position
Assets
Total assets at the end of the third quarter decreased by 406.6
billion yen to 2,090.4 billion yen compared to the end of the
first half of the fiscal year. The main reason for this is that
with SANYO Electric Credit Co., Ltd. off SANYO’s consolidated
balance sheet, finance receivables decreased by 245.2 billion
yen and long-term debt decreased by 123.1 billion yen. |
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Liability and Stockholders’ Equity
Total liabilities at the end of the third quarter decreased
390.1 billion yen to 1,891.1 billion yen compared to the end
of the first half of the fiscal year. The main reason for this
is that with SANYO Electric Credit Co., Ltd. off SANYO’s
consolidated balance sheet, short-term borrowings decreased
by 203.6 billion yen and long-term debt decreased by 206.2 billion
yen. |
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Cash Flows
Regarding statement of cash flows, net cash used in operating
activities was 15.7 billion yen, net cash provided by investing
activities was 1.1 billion yen. Net cash provided by financing
activities was 18.6 billion yen. Taking into account exchange
rate fluctuations, cash and cash equivalents at the end of this
quarter increased by 7.3 billion yen compared to the end of
the mid-term period to 249.4 billion yen. |
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3. Forecast of consolidated results for FY 2005 (April
1, 2005 to March 31, 2006)
The forecast for consolidated results for FY 2005 has not
changed from the announcement made on November 18, 2005.
*The forecasts above are based on assumptions deemed
reasonably at the time they were prepared. Actual results may
differ significantly from forecasts. Actual results may be influenced
by, but not limited to the following, changes in political and
economic climate in different regions, increased material costs
and fluctuations in the foreign exchange markets. |
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