|
| SANYO Third Quarter Financial
Results for Fiscal Year 2006 |
|
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 |
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|
| Tokyo, January 30, 2007 --- SANYO Electric Co., Ltd. today announced
its consolidated results for the third quarter ended December 31,
2006 (October 1, 2006 to December 31, 2006). |
1. Consolidated results (Unaudited)
| (1) For the three-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
|
For the Third quarter
ended Dec. 31, 2006 |
For the Third quarter
ended Dec. 31, 2005 |
Change
|
Net sales |
588,862 |
607,488 |
-3.1 % |
Operating income
(loss) |
15,066
(2.6%) |
11,531
(1.9%) |
30.7 % |
Income (loss)before
incometaxes and
minority interest |
(3,644)
(-0.6%) |
8,518
(1.4%) |
- |
Net Income(Loss) |
(7,295)
(-1.2%) |
6,218
(1.0%) |
- |
Net income (loss)
per share |
(18.44 Yen) |
3.35 Yen |
|
|
| (2) For the nine-month period ended December 31, 2006) |
(Unit: Millions of Yen) |
|
For the nine-month period
From Apr. 1, 2006
To Dec. 31, 2006 |
For the nine-month period
From Apr. 1, 2005
To Dec. 31, 2005 |
Change |
Net Sales |
1,684,401 |
1,786,879 |
-5.7% |
| Operating income |
30,907
(1.8%) |
(16,838)
(-0.9%) |
- |
| Income (loss) before
income taxes and
minority interest |
3,387
(0.2%)
|
(106,267)
(-5.9%) |
- |
Net income (loss) |
(10,913)
(-0.6%) |
(136,307)
(-7.6%) |
- |
Net income (loss)
per share |
(53.34 Yen) |
(73.50 Yen) |
|
| 1. |
SANYO’s consolidated financial statements are prepared
based on U.S. GAAP accounting standards. |
| 2. |
Operating incoming (loss) and business segments are prepared
based on Japanese accounting standards. |
| 3. |
The number of consolidated companies is 219. The number of
unconsolidated subsidiaries and affiliates accounted for by
the equity method is 68. |
| 4. |
Based on U.S. accounting standards, regarding discontinued
operations in FY 2005, reclassified some of FY 2005 third quarter
consolidated financial information. |
| 5. |
Financial affairs numerical results are not covered by audit. |
| 6. |
(%) ratio compared to net sales. |
|
2. Consolidated Sales by Business Group Category (Unaudited)
| (1) For the three-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Product
category |
For the Third quarter
ended
December 31, 2006 |
For the Third quarter
ended
December 31, 2005 |
Change |
| Amount |
Ratio to
total |
Amount |
Ratio
to total |
Amount |
Ratio |
| Consumer |
275,635 |
46.8% |
303,483 |
50.0% |
(27,848) |
-9.2% |
| Commercial |
64,962 |
11.0% |
58,669 |
9.7% |
6,293 |
10.7% |
| Component |
233,896 |
39.7% |
230,556 |
37.9% |
3,340 |
1.4% |
| Others |
14,369 |
2.5% |
14,780 |
2.4% |
(411) |
-2.8% |
| Total |
588,862 |
100.0% |
607,488 |
100.0% |
(18,626) |
-3.1% |
Break
-down |
Domestic
sales |
247,844 |
42.1% |
279,676 |
46.0% |
(31,832) |
-11.4% |
Overseas
sales |
341,018 |
57.9% |
327,812 |
54.0% |
13,206 |
4.0% |
|
| (2) For the nine-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Product
category |
For the nine-month periodFrom
Apr. 1, 2006To Dec. 31, 2006 |
For the nine-month period
From Apr. 1, 2005
To Dec. 31, 2005 |
Change |
| Amount |
Ratio to
total |
Amount |
Ratio
to total |
Amount |
Ratio |
| Consumer |
769,175 |
45.7% |
866,307 |
48.5% |
(97,132) |
-11.2% |
| Commercial |
198,847 |
11.8% |
176,327 |
9.9% |
22,520 |
12.8% |
| Component |
676,256 |
40.1% |
680,615 |
38.0% |
(4,359) |
-0.6% |
| Others |
40,123 |
2.4% |
63,630 |
3.6% |
(23,507) |
-36.9% |
| Total |
1,684,401 |
100.0% |
1,786,879 |
100.0% |
(102,478) |
-5.7% |
Break
-down |
Domestic
sales |
729,105 |
43.3% |
853,643 |
47.8% |
(124,538) |
-14.6% |
Overseas
sales |
955,296 |
56.7% |
933,236 |
52.2% |
22,060 |
2.4% |
|
3. Consolidated Statements of Income (Unaudited)
| (1) For the three-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Items |
For the Third quarter
ended
December 31, 2006 |
For the Third quarter
ended
December 31, 2005 |
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 for
continuing operations
Income taxes |
588,862
26,089
614,951
503,744
96,141
|
100.0%
4.4%
104.4%
85.5%
16.3%
|
607,488
22,567
630,055
516,954
101,570 |
100.0%
3.7%
103.7%
85.1%
16.7% |
(18,626)
3,522
(15,104)
(13,210)
(5,429) |
-3.1%
15.6%
-2.4%
-2.6%
-5.3%
|
15,066
8,622
[852]
[7,770]
27,332
[5,500]
[21,832]
|
2.6%
1.4%
4.6%
|
11,531
19,452
[1,266]
[18,186]
22,465
[4,541]
[17,924]
|
1.9%
3.2%
3.7%
|
3,535
(10,830)
[(414)]
[(10,416)]
4,867
[959]
[3,908]
|
30.7%
-55.7%
21.7%
|
|
(3,644)
749
|
-0.6%
0.1%
|
8,518
3,315
|
1.4%
0.5%
|
(12,162)
(2,566)
|
-
-77.4%
|
Income (Loss) before
minority interests for
continuing operations
Minority interests |
(4,393)
2,902
|
-0.7%
0.5%
|
5,203
549
|
0.9%
0.1%
|
(9,596)
2,353
|
-
428.6%
|
Net income (loss) for
continuing operations
Discontinued
operations
Income (loss) from
discontinued operations
Income taxes |
(7,295)
-
- |
-1.2%
-
-
|
4,654
2,830
1,266 |
0.8%
0.4%
0.2% |
(11,949)
(2,830)
(1,266) |
-
-
- |
Net income (loss) for
discontinued operations |
- |
- |
1,564 |
0.2% |
(1,564) |
- |
| Net income (loss) |
(7,295) |
-1.2%
|
6,218 |
1.0% |
(13,513) |
- |
|
| (2)For the nine-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Items |
For the nine-month
period
From Apr. 1, 2006
To Dec. 31, 2006 |
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005 |
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 for
continuing operations
Income taxes |
1,684,401
72,011
1,756,412
1,445,595
279,910
|
100.0%
4.2%
104.2%
85.8%
16.6%
|
1,786,879
58,018
1,844,897
1,568,103
293,632 |
100.0%
3.2%
103.2%
87.7%
16.4% |
(102,478)
13,993
(88,485)
(122,508)
(13,722) |
-5.7%
24.1%
-4.8%
-7.8%
-4.7%
|
30,907
34,361
[4,489]
[29,872]
61,881
[15,538]
[46,343]
|
1.8%
2.1%
3.7%
|
(16,838)
47,684
[4,952]
[42,732]
137,113
[13,085]
[124,028]
|
-0.9%
2.7%
7.7%
|
47,745
(13,323)
[(463)]
[(12,860)]
(75,232)
[2,453]
[(77,685)]
|
-
-27.9%
-54.9%
|
|
3,387
11,012
|
0.2%
0.7%
|
(106,267)
28,335
|
-5.9%
1.6%
|
109,654
(17,323)
|
-
-61.1%
|
Income (Loss) before
minority interests for
continuing operations
Minority interests |
(7,625)
3,288
|
-0.5%
0.1%
|
(134,602)
(2,896)
|
-7.5%
-0.1%
|
126,977
6,184
|
-
-
|
Net income (loss) for
continuing operations
Discontinued
operations
Income (loss) from
discontinued operations
Income taxes |
(10,913)
-
- |
-0.6%
-
-
|
(131,706)
(1,152)
3,449 |
-7.4%
-0.0%
0.2% |
120,793
1,152
(3,449) |
-
-
- |
Net income (loss) for
discontinued operations |
- |
- |
(4,601) |
-0.2% |
4,601 |
- |
| Net income (loss) |
(10,913) |
-0.6%
|
(136,307) |
-7.6% |
125,394 |
- |
|
| 4. Consolidated Balance Sheet (Unaudited) |
(Unit: Millions of Yen) |
Items |
As of
Dec. 31, 2006 |
As of
Sep. 30, 2006 |
Increase
(Decrease) |
|
As of
Mar. 31, 2006 |
(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 |
348,620
159,700
499,741
372,227
78,870
1,459,158
129,317
476,592
63,909
|
340,171
192,000
478,038
375,049
69,004
1,454,262
140,304
479,228
63,885
|
8,449
(32,300)
21,703
(2,822)
9,866
4,896
(10,987)
(2,636)
24
|
297,500
264,800
480,795
317,894
59,328
1,420,317
160,988
500,686
72,846
|
| Total Assets |
2,128,976 |
2,137,679 |
(8,703) |
2,154,837 |
(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 |
403,528
448,117
307,050
1,158,695
378,661
193,791
1,731,147
18,609
309,464
769,376
(573,515)
(118,636)
(7,469)
379,220
|
392,982
459,746
287,782
1,140,510
399,867
195,356
1,735,733
15,804
293,361
753,466
(534,199)
(119,032)
(7,454)
386,142
|
10,546
(11,629)
19,268
18,185
(21,206)
(1,565)
(4,586)
2,805
16,103
15,910
(39,316)
396
(15)
(6,922)
|
338,738
423,030
284,475
1,046,243
500,434
186,969
1,733,646
18,299
261,328
721,828
(466,951)
(105,885)
(7,428)
402,892
|
| Total liabilities,
minority interests and
stockholders’ equity |
2,128,976 |
2,137,679 |
(8,703) |
2,154,837 |
|
5. Consolidated Statement of Cash Flows (Unaudited)
| (1)For the three-month ended December 31, 2006 |
(Unit: Millions of Yen) |
|
| Items |
For the Third quarter
ended
December 31, 2006 |
For the Third quarter
ended
December 31, 2005
|
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 |
(7,295)
22,506
(18,639)
6,328
(14,824)
4,092
|
6,218
32,877
(66,781)
3,616
29,045
(20,706)
|
| Net cash (used) in provided by operating activities |
(7,832) |
(15,731) |
2. Cash flows from investing activities
(Increase) Decrease in short term
& long term investment
Purchase and sale of tangible fixed assets
(Payments for) sale of consolidated subsidiaries
Other |
7,294
(13,305)
-
3,363
|
16,248
(6,567)
(6,130)
(2,442)
|
| Net cash (used) in investing activities |
(2,648) |
1,109 |
3. Cash flows from financing activities
Increase in short term borrowing
Decrease in long term debt
Dividends paid
Other |
(1,901)
(13,130)
32,300
(140)
|
34,848
(17,426)
-
1,275
|
| Net cash (used) provided by financing activities |
17,129 |
18,697 |
4. Effect of exchange rate changes on
cash & cash equivalents |
1,800 |
3,232 |
| 5. Net (decrease) increase in cash & cash equivalents |
8,449 |
7,307 |
6. Cash & cash equivalents at beginning
7. Cash & cash equivalents at end |
340,171
348,620 |
242,137
249,444 |
|
| (2)For the nine-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Items |
For the nine-month
period
From Apr. 1, 2006
To Dec. 31, 2006 |
For the nine-month
period
From Apr. 1, 2005
To Dec. 31, 2005
|
1. Cash flows from operating activities
Net income (loss)
Depreciation and amortization
Decrease in fixed assets
Increase in receivables
(Increase) Decrease in inventories
Increase in notes & accounts payable
Other, net |
(10,913)
71,331
3,914
(18,097)
(45,991)
27,620
(13,137)
|
(136,307)
99,625
57,438
(15,429)
16,031
(49,741)
(27,191)
|
| Net cash (used) in provided by operating activities |
(3,610) |
(55,574) |
2. Cash flows from investing activities
(Increase) Decrease in short term
& long term investment
Purchase and sale of tangible fixed assets
(Payments for) sale of consolidated subsidiaries
Other |
14,609
(22,451)
-
4,232
|
58,817
(59,178)
(6,130)
(1,994)
|
| Net cash (used) in investing activities |
(3,610) |
(8,485) |
3. Cash flows from financing activities
Increase in short term borrowing
Decrease in long term debt
Dividends paid
Other |
(19,124)
(48,717)
105,100
(547)
|
48,568
(53,806)
-
684
|
| Net cash (used) provided by financing activities |
36,712 |
(4,554) |
4. Effect of exchange rate changes on
cash & cash equivalents |
3,291 |
6,780 |
| 5. Net (decrease) increase in cash & cash equivalents |
51,120 |
(61,833) |
6. Cash & cash equivalents of newly
consolidated subsidiaries
7. Cash & cash equivalents at beginning
8. Cash & cash equivalents at end |
-
297,500
348,620 |
16,295
294,982
249,444 |
|
6. Consolidated Segment Information (Unaudited)
| (1) For the three-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Items |
For the Third quarter
ended
December 31, 2006 |
For the Third quarter
ended
December 31, 2005 |
Change |
Amount |
Component
proportion
ratio |
Amount |
Component
proportion
ratio |
Amount |
Ratio |
Net sales
&
operating
revenue |
Consumer |
276,279 |
44.0% |
305,439 |
47.5% |
(29,160) |
-9.5% |
| Commercial |
132,283 |
10.6% |
59,417 |
9.2% |
7,110 |
12.0% |
| Component |
455,929 |
38.9% |
239,702 |
37.3% |
5,049 |
2.1% |
| Others |
40,971 |
6.5% |
38,595 |
6.0% |
2,376 |
6.2% |
| Sub-total |
628,528 |
100.0% |
643,153 |
100.0% |
(14,625) |
-2.3% |
Corporate &
eliminations |
(13,577) |
- |
(13,098) |
- |
(479) |
- |
Total |
614,951 |
- |
630,055 |
- |
(15,104) |
-2.4% |
|
Operating
income |
Consumer |
2,103 |
8.9% |
1,844 |
10.4% |
259 |
14.0% |
| Commercial |
2,167 |
9.1% |
2,612 |
14.7% |
(445) |
-17.0% |
| Component |
17,735 |
75.0% |
14,094 |
79.3% |
3,641 |
25.8% |
| Others |
1,653 |
7.0% |
(770) |
-4.4% |
2,423 |
- |
| Sub-total |
23,658 |
100.0% |
17,780 |
100.0% |
5,878 |
33.1% |
Corporate &
eliminations |
(8,592) |
- |
(6,249) |
- |
(2,343) |
- |
Total |
15,066 |
- |
11,531 |
- |
3,535 |
30.7% |
|
| |
| (2) For the nine-month period ended December 31, 2006 |
(Unit: Millions of Yen) |
| Items |
For the nine-month period
From Apr. 1, 2006
To Dec. 31, 2006 |
For the nine-month period
From Apr. 1, 2005
To Dec. 31, 2005 |
Change |
Amount |
Component
proportion
ratio |
Amount |
Component
proportion
ratio |
Amount |
Ratio |
Net sales &
operating
revenue |
Consumer |
778,057 |
43.4% |
872,081 |
46.3% |
(94,024) |
-10.8% |
| Commercial |
198,810 |
11.1% |
179,441 |
9.5% |
19,369 |
10.8% |
| Component |
700,680 |
39.1% |
706,375 |
37.5% |
(5,695) |
-0.8% |
| Others |
114,509 |
6.4% |
127,546 |
6.7% |
(13,037) |
-10.2% |
| Sub-total |
1,792,056 |
100.0% |
1,885,443 |
100.0% |
(93,387) |
-5.0% |
Corporate
&eliminations |
(35,644) |
- |
(40,546) |
- |
4,902 |
- |
Total |
1,756,412 |
- |
1,844,897 |
- |
(88,485) |
-4.8% |
| |
Operating
income |
Consumer |
(1,811) |
-3.2% |
(10,210) |
-246.9% |
8,399 |
- |
| Commercial |
9,360 |
16.4% |
4,606 |
111.4% |
4,754 |
103.2% |
| Component |
46,528 |
81.4% |
7,926 |
191.6% |
38,602 |
487.0% |
| Others |
3,055 |
5.4% |
1,814 |
43.9% |
1,241 |
68.4% |
| Sub-total |
57,132 |
100.0% |
4,136 |
100.0% |
52,996 |
- |
Corporate&
eliminations |
(26,225) |
- |
(20,974) |
- |
(5,251) |
- |
Total |
30,907 |
- |
(16,838) |
- |
47,745 |
- |
(Notes)
1. Contents of Business Se
| 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, Electronic Components, Primary batteries,
Rechargeable batteries and Photovoltaic modules. |
| Others: |
Leasing, and Msaintenance. |
| 2. |
Basic R&D expenses and corporate office
expenses are included in the item of "Corporate and eliminations"
as unallocated expenses. |
| 3. |
Regarding discontinued operations in FY 2005,
reclassified some of FY 2005 third quarter consolidated financial
information. |
|
| Business Performance & Financial
Position |
|
 |
|
|
|
1. Qualitative information for consolidated business results
General Overview for Third Quarter Fiscal Year 2006
The global economy of the current period has generally had a transition
to a bullish market, despite the slowing of America’s economic
expansion, due partially to a continuation of economic expansion starting
in China and the surrounding Asia area.
On the other hand, amid the global economy’s steady recovery
despite weaker consumption, the Japanese economy has seen on the whole
a recovery supported by favorable corporate earnings as well as things
such as exports and capital investments.
Under these conditions, the SANYO Group’s structural transformation
aimed at becoming “An Advanced Environment and Energy Maker”
has entered the “Restructuring” phase of the Mid-term
Management Plan, and is making progress in changing into an organization
which can ensure residual earnings through reforming the business
model of the structural transformation businesses and by shifting
the focus of management resources to SANYO’s core businesses.
Consolidated Results
Third quarter consolidated net sales were 588.9 billion yen, a decrease
of 3.1% over the same period last year. Domestic net sales were 247.9
billion yen, a decrease of 11.4% over the same period last year. Overseas
net sales increased 4.0% to 341.0 billion yen over the same period
last year.
By business segments, the Consumer segment recorded sales of 275.6
billion yen, a decrease of 9.2% compared with the same period of the
previous year. This decrease, despite favorable progressing conditions
and increases overseas in sales of mobile phones and the ‘AQUA’,
a washer/dryer unit equipped with the “Air Wash” function,
is in part due to the increasingly fierce competition in the digital
camera OEM business.
Commercial segment sales amounted to 65.0 billion yen, an increase
of 10.7% compared to the same period of the previous year, due to
an increase in overseas sales, primarily in Europe, of items such
as commercial-use (large) air conditioners and biomedical systems.
Component segment sales increased 1.4% over the same period last year
to 233.9 billion yen despite a decrease in sales of rechargeable batteries
targeted at overseas markets, owing to increased sales in the European
market where there is high demand for solar modules, condensers (capacitors)
for mobile phones and computers, and higher sales of optical pickups
and electrical parts favorable for motors.
Operating income was 15.1 billion yen, an increase of 30.7% over the
same period last year, owing to cost reductions. Income before tax
was a 3.6 billion yen loss due to outplacement system costs. Additionally,
net income after deducting provision for corporate income tax and
minority interests was a 7.3 billion yen loss.
2. Financial Position (Consolidated)
Assets
Total assets at the end of the third quarter decreased by 8.7 billion
yen to 2,129.0 billion yen compared to the end of the first half
of the fiscal year. The primary reason for this is that despite
increasing the finance receivables by 21.7 billion yen, the cash
in trust decreased 32.3 billion yen as well as loans decreasing
by 11.0 billion yen.
Liability and Stockholders’ Equity
Total liabilities at the end of the third quarter decreased 4.6
billion yen to 1,731.1 billion yen compared to the end of the first
half of the fiscal year. The main reason for this is that long-term
debt decreased by 21.2 billion yen.
Capital amount total at the end of the third quarter decreased 6.9
billion yen to 379.2 billion yen compared to the end of the first
half of the fiscal year, due to a net profit loss of 7.3 billion
yen this period. Furthermore, plans dealing with the conversion
of capital stock and capital surplus and earned surplus are being
carried out, along with plans on the redemption of preferred stocks’
beneficial conversion authority (for 32.0 billion yen).
Cash Flows
Regarding statement of cash flows for the third quarter, net cash
used in operating activities increased to 7.8 billion yen, net cash
used in investing activities decreased to 2.6 billion yen. Net cash
used in financing activities increased to 17.1 billion yen. Taking
into account exchange rate fluctuations, cash and cash equivalents
at the end of this quarter increased by 8.4 billion yen compared
to the end of the mid-term period to 348.6 billion yen.
3. Forecast of Consolidated Results for FY 2006 (April 1, 2006
to March 31, 2007)
The forecast for consolidated results for FY 2006 has not changed
from the announcement made on November 24, 2006.
*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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