For Reference:
SANYO Takes an Important First Step to Profitability in FY 2007
SANYO Electric Co., Ltd. Consolidated Financial Results
for the First Quarter of Fiscal Year 2007
Tokyo, July 30, 2007 --- SANYO Electric Co., Ltd. (SANYO) announces its consolidated results for the first quarter of fiscal year 2007 (April 1, 2007 to June 30, 2007).
The first quarter of fiscal year 2007 ended with consolidated net sales of 496,416 million yen. While there were concerns about the domestic market for mobile handsets and white goods as domestic sales decreased 22.7% over the same period last year, SANYO also saw an increase in overseas sales of 18.6%, resulting in a total of 307,028 million yen, over the same period last year. This was due to the favorable increase in sales in the consumer group for digital cameras and LCD projectors, the commercial group for showcases and packaged air conditioners, and the component group for rechargeable batteries and optical pick-ups.
The income before income taxes and minority interests for the first quarter was 5,444 million yen, with a total net profit of 2,572 million yen in the positive. Originally, due to the sudden rises in the prices of raw materials, the total operating profit was 732 million yen. However, together with other income such as the sale of SANYO Electric Credit Co., Ltd. and the improvement of equity in earnings of affiliates and unconsolidated subsidiaries, the quarter ended with a positive net profit.
Kouichi Maeda, a SANYO Executive Vice President, commented, "The main goal for this fiscal year in SANYO is returning to profitability in both the consolidated and non-consolidated earnings. Results in the first quarter are in line with our original estimations, and we have taken an important first step towards reaching our goal. Hereafter we will progressively manage respective business management tasks, and make efforts as a whole for the accomplishment of our business goal."
SANYO is currently formulating a 'Master Plan' aimed at recreating its business portfolio with a business strategy targeting sustainable and continued growth and profitability. During the current fiscal year, based on the 'Master Plan' set to be created, a 'New 3-year Mid-term Management Plan' (from FY 2008 ~ FY 2010) will be created to ensure the SANYO Group's future growth.
In addition, forecasts for FY 2007 are unchanged from the original forecast announced May 28, 2007 as below.
| Forecast of FY 2007 | Consolidated | Non-Consolidated |
| Net sales: | ¥2,230,000 million | ¥1,450,000 million |
| Operating profit: | ¥45,000 million | ¥10,000 million |
| Income before income taxes and minority interests/ Ordinary profit: |
¥32,000 million | ¥1,500 million |
| Net income: | ¥20,000 million | ¥15,000 million |
*The forecasts above are based on assumptions deemed reasonable at the time they were prepared, actual results may differ significantly from forecasts. Actual results may be influenced but not limited to changes in political and economic regions, increased material costs and fluctuations in the foreign exchange markets.
1. Consolidated Results (Unaudited)
(Unit: Millions of Yen)
1st quarter of FY 2007 From April 1, 2007 to June 30, 2007 |
1st quarter of FY 2006 From April 1, 2006 to June 30, 2006 |
Change |
|
| Net Sales | 496,416 | 504,115 | -1.5 % |
| Operating income | 732 (0.1%) |
2,573 (0.5%) |
-71.6% |
| Income (loss) before income taxes and minority interest from continuing operations |
5,444 (1.1%) |
(6,052) (-1.2%) |
- |
| Net income (loss) | 2,572 (0.5%) |
(9,668) (-1.9%) |
- |
| Net income (loss) per share |
0.42 yen | (18.64) yen |
1. SANYO's consolidated financial statements are prepared based on U.S. accounting standards
2. Operating income (loss) and business segments are prepared based on Japanese accounting standards
3. The number of consolidated companies is 197, the number of unconsolidated subsidiaries and affiliates
accounted for by the equity method is 67
4. Financial figures are not audited
5. Figures inside ( ) refer to the percentage to net sales
2. Consolidated Sales by Business Group Category (Unaudited)
(Unit: Millions of Yen)
Product category |
1st quarter of FY 2007 From April 1, 2007 to June 30, 2007 |
1st quarter of FY 2006 From April 1, 2006 to June 30, 2006 |
Change |
||||
Amount |
Ratio to total |
Amount |
Ratio to total |
Amount |
Ratio to total |
||
| Consumer | 209,367 |
42.1% |
237,234 |
47.1% |
-27,867 |
-11.7% |
|
| Commercial | 60,448 |
12.2% |
53,946 |
10.7% |
6,502 |
12.1% |
|
| Components | 217,314 |
43.8% |
204,117 |
40.5% |
13,197 |
6.5% |
|
| Others | 9,287 |
1.9% |
8,818 |
1.7% |
469 |
5.3% |
|
| Total | 496,416 |
100.0% |
504,115 |
100.0% |
-7,699 |
-1.5% |
|
| Breakdown | Domestic sales |
189,388 |
38.2% |
245,150 |
48.6% |
-55,762 |
-22.7% |
| Overseas sales |
307,028 |
61.8% |
258,965 |
51.4% |
48,063 |
18.6% |
|
3. Consolidated Statements of Income (Unaudited)
(Unit: Millions of Yen)
Items |
1st quarter of FY 2007 From April 1, 2007 to June 30, 2007 |
1st quarter of FY 2006 |
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 |
496,416 25,160 521,576 434,506 86,338 |
100.0% 5.1% 105.1% 87.6% 17.4% |
504,115 21,540 525,655 426,841 96,241 |
100.0% 4.3% 104.3% 84.7% 19.1% |
-7,699 3,620 -4,079 7,665 -9,903 |
-1.5% 16.8% -0.8% 1.8% -10.3% |
732 19,235 [2,922] [16,313] 14,523 [4,037] [10,486] |
0.1% 3.9% 2.9% |
2,573 4,620 [1,889] [2,731] 13,245 [4,795] [8,450] |
0.5% 0.9% 2.6% |
-1,841 14,615 [1,033] [13,582] 1,278 [-758] [2,036] |
-71.6% 316.3% 9.6% |
|
5,444 2,590 |
1.1% 0.5% |
(6,052) 2,607 |
-1.2% 0.5% |
11,496 -17 |
- -0.7% |
|
Income (Loss) before minority interests for continuing operations Minority interests |
2,854 282 |
0.6% 0.1% |
(8,659) 1,009 |
-1.7% 0.2% |
11,513 -727 |
- -72.1% |
| Net income (loss) | 2,572 |
0.5% |
(9,668) |
-1.9% |
12,240 |
- |
4. Consolidated Balance Sheet (Unaudited)
(Unit: Millions of Yen)
Items |
As of June 30, 2007 |
As of March 31, 2007 |
Increase (Decrease) |
| (Assets) Current assets: Cash and cash equivalents: Cash Time deposits Restricted cash Valuable securities Receivables: Notes and accounts receivables Affiliates and unconsolidated subsidiaries Allowance for doubtful accounts Inventories Deferred income taxes Other Total Current assets Investment and advances: Affiliates and unconsolidated subsidiaries Other Total Investment and advances Property, plant & equipment: Building Machinery and equipment Accumulated depreciation Land Construction in progress Total Property, plant & equipment Deferred income taxes Other assets |
164,401 147,072 57,600 171 419,988 22,062 (7,216) 353,755 5,321 72,415 1,235,569 51,569 54,076 105,645 406,822 883,686 (922,365) 92,309 10,397 470,849 13,123 65,299 |
148,382 186,304 88,000 672 453,999 21,117 (7,493) 329,108 5,850 62,271 1,288,210 49,180 84,045 133,225 401,796 867,425 (901,604) 91,605 9,557 468,779 13,921 66,805 |
16,019 (39,232) (30,400) (501) (34,011) 945 277 24,647 (529) 10,144 (52,641) 2,389 (29,969) (27,580) 5,026 16,261 (20,761) 704 840 2,070 (798) (1,506) |
| Total Assets | 1,890,485 |
1,970,940 |
(80,455) |
| (Liabilities and Stockholders' Equity) Current liabilities Short-term borrowings Current portion of long term debt Notes and accounts payable: Trade Affiliates and unconsolidated subsidiaries Construction Accrued income tax Employees' savings deposits Other Total Current liabilities Long-term debt Accrued pension and severance costs Long-term deferred tax liabilities Total Liabilities Minority interests in consolidated subsidiaries Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total Treasury stock Total stockholders' equity |
200,717 123,418 398,631 5,381 25,610 3,252 12,128 248,335 1,017,472 313,385 209,973 8,124 1,548,954 23,451 322,242 781,951 (630,744) (147,662) 325,787 (7,707) 318,080 |
219,785 155,221 406,577 6,118 20,424 8,997 12,202 245,564 1,074,888 340,698 211,173 8,327 1,635,086 23,846 322,242 781,951 (633,315) (151,174) 319,704 (7,696) 312,008 |
(19,068) (31,803) (7,946) (737) 5,186 (5,745) (74) 2,771 (57,416) (27,313) (1,200) (203) (86,132) (395) - - 2,571 3,512 6,083 (11) 6,072 |
| Total Liabilities and Stockholders' Equity |
1,890,485 |
1,970,940 |
(80,455) |
5. Consolidated Statement of Cash Flows (Unaudited)
(Unit: Millions of Yen)
Items |
1st quarter of |
1st quarter of FY 2006 From April 1, 2006 to June 30, 2006 |
| 1. Cash flows from operating activities Net income (loss) Depreciation and amortization Decrease in receivables Increase in inventories Increase (decrease) in notes & accounts payable Other |
2,572 21,260 40,348 (19,688) (12,122) (20,520) |
(9,668) 18,637 34,864 (33,558) 10,683 (5,673) |
| Net cash (used) provided by operating activities | 11,850 |
15,285 |
| 2. Cash flows from investing activities Decrease in valuable securities, investment and advances Purchase and sale of tangible fixed assets Other |
26,076 (10,647) (488) |
973 (12,278) (1,099) |
| Net cash (used) in investing activities | 14,941 |
(12,404) |
| 3. Cash flows from financing activities Decrease in short term borrowing Decrease in long term debt Proceeds from restricted cash Dividends paid Other, net |
(22,380) (62,006) 30,400 (440) (129) |
(703) (13,130) 25,000 (99) (13) |
| Net cash (used) provided by financing activities | (54,555) |
11,055 |
| 4. Effect of exchange rate changes on cash & cash equivalents |
4,551 |
(1,064) |
| 5. Net (decrease) increase in cash & cash quivalents |
(23,213) |
12,872 |
| 6. Cash & cash equivalents at beginning 7. Cash & cash equivalents at end |
334,686 311,473 |
297,500 310,372 |
6. Consolidated Segment Information (Unaudited)
(Unit: Millions of Yen)
Items |
Fiscal Year 2007 From April 1, 2007 To June 30, 2007 |
Fiscal Year 2006 From April 1, 2006 To June 30, 2006 |
Change |
||||
| Net sales & operating revenue |
Consumer | 211,688 |
39.8% |
240,622 |
44.7% |
-28,934 |
-12.0% |
| Commercial | 60,534 |
11.4% |
54,850 |
10.2% |
5,684 |
10.4% |
|
| Component | 224,289 |
42.2% |
212,053 |
39.3% |
12,236 |
5.8% |
|
| Others | 35,217 |
6.6% |
31,256 |
5.8% |
3,961 |
12.7% |
|
| Sub-total | 531,728 |
100.0% |
538,781 |
100.0% |
-7,053 |
-1.3% |
|
| Corporate & eliminations |
(10,152) |
- |
(13,126) |
- |
2,974 |
- |
|
| Total | 521,576 |
- |
525,655 |
- |
-4,079 |
-0.8% |
|
| Operating income |
Consumer | (4,330) |
-55.0% |
(4,831) |
-45.9% |
501 |
- |
| Commercial | (611) |
-7.7% |
1,649 |
15.7% |
-2,260 |
- |
|
| Component | 12,085 |
153.4% |
12,602 |
119.8% |
-517 |
-4.1% |
|
| Others | 734 |
9.3% |
1,099 |
10.4% |
-365 |
-33.2% |
|
| Sub-total | 7,878 |
100.0% |
10,519 |
100.0% |
-2,641 |
-25.1% |
|
| Corporate & eliminations |
(7,146) |
- |
(7,946) |
- |
800 |
- |
|
| Total | 732 |
- |
2,573 |
- |
-1,841 |
-71.6% |
|
(Notes)
1. Contents of Business Segment
| Consumer: | TVs, VCRs, DVD Players, LCD Projectors, Audio Equipment, Digital Cameras and Telephones, Refrigerators, Air Conditioners, Washing Machines and Microwave Ovens. |
| Commercial: | Showcases, Package-Type Air Conditioners and Absorption Chiller / Heaters. |
| Components: | Semiconductors and Electronic Components, Primary batteries, Rechargeable batteries and Solar batteries. |
| Others: | Distribution and Maintenance. |
2. Basic R&D expenses and corporate office expenses are included in the item of "Corporate and eliminations" as unallocated expenses.
For Press Contact:(English Only)
- Global Communications Department
Corporate Communications Headquarters
SANYO Electric Co., Ltd.
Tel: +81-3-6414-8615 Fax: +81-3-6414-8720
E-mail: i_press.1014390@sanyo.co.jp
