For Reference Only:
SANYO Lengthens Stride in the Third Quarter
SANYO Electric Co., Ltd. Consolidated Financial Results
for the Third Quarter of Fiscal Year 2007
Tokyo, February 5, 2008 – SANYO Electric Co., Ltd. (SANYO) announces its consolidated results for the third quarter of fiscal year (FY) 2007 (Oct.1, 2007 to Dec. 31, 2007).
The consolidated sales total rose for the third quarter 1.4% to 597.2 billion yen, compared to the same period last year. For the Japanese market, while sales of digital cameras were favorable, sales of consumer-use refrigerators and commercial-use showcases were bullish, and due to dropping prices as well as increased, intensified competition in the mobile phone business, there was an overall decrease of 7.3%, totaling 229.9 billion yen compared to the same period last year. As for overseas markets, there were favorable and increased sales in digital cameras, rechargeable batteries and solar photovoltaic modules as well as strong sales in commercial-use air conditioners, increasing 7.7% from the same period last year to total 367.3 billion yen.
As for operating profit, while the sudden rise in raw materials costs has affected overall business in some aspects, through increased sales in finished goods such as digital cameras and rechargeable batteries as well as additional cost reductions and the streamlining of operations, the quarter ended with an operating profit of 26.2 billion yen, an increase of 11.2 billion yen (up 74.0%) over the same period last year.
Profit before tax, including a decrease in payments for things such as retirement, showed a strong recovery, with an improvement of 23.3 billion yen over the same period last year, bringing the total for the third quarter of FY 2007 to 19.7 billion yen.
The net profit for the third quarter after taxes was 12.8 billion yen, a recovery of 20.1 billion yen from the same period a year ago.
Koichi Maeda, Executive Vice President of SANYO, commented, “Regarding the third quarter results, we have seen favorable results in the sales of digital cameras, rechargeable batteries, solar photovoltaic modules and electronic devices continuing from the first half. When compared to the same period last year, revenue and profit have significantly improved. Consequently, we have accomplished our earnings forecast for the year already over these first nine months in terms of operating profit, profit before tax, and net profit for the term.”
He added, “As for our forecast for FY 2007, we will raise the operating profit outlook by 5 billion yen, changing the total to 55 billion yen. For the remaining two months of this fiscal year, we will work on accomplishing our forecasted totals as well as push forward with the creation of the new ‘Mid-term Management Plan’ for the next three year period from FY 2008 through FY 2010.”
SANYO announced a new ‘Mid-term Business Strategy’ or ‘Master Plan’ to make clear the path to profitability on November 27, 2007. Within the plan, several goals were outlined, including the ‘Challenge 1000’, a challenge for the group to achieve an operating profit of 100 billion yen within 1000 days (approximately three years). In the near future, a new ‘Mid-term Management Plan’ for the next three fiscal years (FY 2008 to FY 2010) will be announced based on the ‘Master Plan’ to help ensure sustainable growth.
The forecast for FY 2007 has been raised as below.
|
For the FY 2007 ended |
Change from the |
Net sales: |
￥2,230,000 million |
0.7% |
Operating profit: |
￥55,000 million |
11.1% |
Income before income taxes and minority interests/ Ordinary profit: |
￥32,000 million |
- |
Net income: |
￥20,000 million |
- |
*The numbers inside ( ) were the forecasts as of November 27, 2007.
**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.
For Press Contact:(English Only)
- Global Communications Department
Corporate Communications Headquarters
SANYO Electric Co., Ltd.
Tel:+81-3-6414-8621 Fax: +81-3-6414-8720
E-mail: i_press.1014390@sanyo.co.jp
URL: http://www.sanyo.com
1.Consolidated results (Unaudited)
(1) For the three-month period ended December 31, 2007(Unit: Millions of Yen)
|
For the Third quarter |
For the Third quarter |
Change |
Net Sales |
597,165 |
588,862 |
1.4 % |
Operating income (loss) |
26,220 |
15,066 |
74.0 % |
Income (loss) before |
19,657 |
(3,644) |
- |
Net income (loss) |
12,778 |
(7,295) |
- |
Net income (loss) |
2.08 Yen |
(18.44)Yen |
|
(2) For the nine-month period ended December 31, 2007(Unit: Millions of Yen)
|
For the nine-month period |
For the nine-month period |
Change |
Net Sales |
1,688,603 |
1,684,401 |
0.2% |
Operating income (loss) |
50,031 |
30,907 |
61.9% |
Income (loss) before |
43,770 |
3,387 |
|
Net income (loss) |
28,759 |
(10,913) |
|
Net income (loss) per share |
4.68 yen |
(53.34) yen |
|
1. SANYO’s consolidated financial statements are based on U.S. GAAP accounting standard.
2. Operating profit and segment based information is prepared using Japan’s standard.
3. The number of consolidated subsidiaries 191, and affiliates 64.
4. Financial affairs numerical results are not covered by audit.
5. Percentage figures inside ( ) refer to the percentage to net sales.
2. Consolidated Sales by Business Group Category (Unaudited)
(1) For the three-month period ended December 31, 2007(Unit: Millions of Yen)
Product category |
For the Third quarter |
For the Third quarter |
Change |
||||
Amount |
Ratio to |
Amount |
Ratio to |
Amount |
Ratio |
||
Consumer |
269,716 |
45.2% |
275,635 |
46.8% |
(5,919) |
-2.1% |
|
Commercial |
65,790 |
11.0% |
64,962 |
11.0% |
828 |
1.3% |
|
Component |
251,678 |
42.1% |
233,896 |
39.7% |
17,782 |
7.6% |
|
Others |
9,981 |
1.7% |
14,369 |
2.5% |
(4,388) |
-30.5% |
|
Total |
597,165 |
100.0% |
588,862 |
100.0% |
8,303 |
1.4% |
|
Breakdown |
Domestic sales |
229,833 |
38.5% |
247,844 |
42.1% |
(18,011) |
-7.3% |
Overseas sales |
367,332 |
61.5% |
341,018 |
57.9% |
26,314 |
7.7% |
|
(2) For the nine-month period ended December 31, 2007(Unit: Millions of Yen)
Product category |
For the nine-month |
For the nine-month |
Change |
||||
Amount |
Ratio to |
Amount |
Ratio to |
Amount |
Ratio |
||
Consumer |
741,501 |
43.9% |
769,175 |
45.7% |
(27,674) |
-3.6% |
|
Commercial |
194,947 |
11.5% |
198,847 |
11.8% |
(3,900) |
-2.0% |
|
Component |
723,704 |
42.9% |
676,256 |
40.1% |
47,448 |
7.0% |
|
Others |
28,451 |
1.7% |
40,123 |
2.4% |
(11,672) |
-29.1% |
|
Total |
1,688,603 |
100.0% |
1,684,401 |
100.0% |
4,202 |
0.2% |
|
Breakdown |
Domestic sales |
633,295 |
37.5% |
729,105 |
43.3% |
(95,810) |
-13.1% |
Overseas sales |
1,055,308 |
62.5% |
955,296 |
56.7% |
100,012 |
10.5% |
|
3. Consolidated Balance Sheet (Unaudited)(Unit: Millions of Yen)
Items |
As of |
As of |
Increase |
As of |
As of |
(Assets) Current Assets Investment and advances |
329,525 - 89,131 |
159,700 499,741 129,317 |
(159,700) (40,186) |
27,400 93,680 |
88,000 133,225 |
Total Assets |
1,866,682 |
2,128,976 |
(262,294) |
1,898,296 |
1,970,940 |
(Liabilities) Long-term debt Total liabilities Minority interests in (Stockholders’ equity) Common stock Total stockholders’ equity |
275,682 290,874 1,502,725 26,225
(7,705) 337,732 |
403,528 378,661 1,731,147 18,609
(7,469) 379,220 |
(127,846) (87,787) (228,422) 7,616
(236) (41,488) |
303,687 297,080 1,542,702 26,489
(7,693) 329,105 |
375,006 340,698 1,635,086 23,846
(7,696) 312,008 |
Total liabilities, |
1,866,682 |
2,128,976 |
(262,294) |
1,898,296 |
1,970,940 |
4. Consolidated Statements of Income (Unaudited)
(1) For the three-month period ended December 31, 2007(Unit: Millions of Yen)
Items |
For the Third quarter |
For the Third quarter |
Change |
|||
Amount |
Ratio to |
Amount |
Ratio to |
Amount |
Ratio |
|
Net sales Operating revenue Sales and operating Cost of sales Selling, general and Operating income Other income [Interest and Dividends] [Other] Other expenses [Interest] [Other] Income (Loss) before Income taxes |
597,165 16,510 613,675 499,958
|
100.0% 2.8% 102.8% 83.7%
|
588,862 26,089 614,951 503,744
|
100.0% 4.4% 104.4% 85.5%
|
8,303 (9,579) (1,276) (3,786)
|
1.4% -36.7% -0.2% -0.8%
|
|
26,220 8,893 [1,894] [6,999] 15,456 [3,992] [11,464] |
4.4% 1.5%
2.6%
|
15,066 8,622 [852] [7,770] 27,332 [5,500] [21,832] |
2.6% 1.4%
4.6%
|
11,154 271 [1,042] [(771)] (11,876) [(1,508)] [(10,368)] |
74.0% 3.1%
-43.5%
|
|
19,657
5,824 |
3.3%
1.0% |
(3,644)
749 |
-0.6%
0.1% |
23,301
5,075 |
-
677.6% |
|
Income (Loss) before Minority interests |
13,833
|
2.3%
|
(4,393)
|
-0.7%
|
18,226
|
-
|
|
Net income (loss) |
12,778 |
2.1% |
(7,295) |
-1.2% |
20,073 |
- |
(2)For the nine-month period ended December 31, 2007(Unit: Millions of Yen)
Items |
For the nine-month period |
For the nine-month period |
Change |
|||
Amount |
Ratio to |
Amount |
Ratio to |
Amount |
Ratio |
|
Net sales Operating revenue Sales and operating Cost of sales Selling, general and
Other income [Interest and Dividends] [Other] Other expenses [Interest] [Other]
Income taxes |
1,688,603 68,044 1,756,647
263,918 |
100.0% 4.0% 104.0%
15.6% |
1,684,401 72,011 1,756,412
279,910 |
100.0% 4.2% 104.2%
16.6% |
4,202 (3,967) 235
(15,992) |
0.2% -5.5% 0.0%
-5.7% |
|
50,031 40,594 [6,741] [33,853] 46,855 [12,741] [34,114] |
3.0% 2.4%
2.8%
|
30,907 34,361 [4,489] [29,872] 61,881 [15,538] [46,343] |
1.8% 2.1%
3.7%
|
19,124 6,233 [2,252] [3,981] (15,026) [(2,797)] [(12,229)] |
61.9% 18.1%
-24.3%
|
|
43,770
12,350 |
2.6%
0.7% |
3,387
11,012 |
0.2%
0.7% |
40,383
1,338 |
-
12.2% |
|
Income (Loss) before Minority interests |
31,420
|
1.9%
|
(7,625)
|
-0.5%
|
39,045
|
-
|
Net income (loss) |
28,759 |
1.7% |
(10,913) |
-0.6% |
39,672 |
- |
5. Consolidated Statement of Cash Flows (Unaudited)
(1)For the three-months ended December 31, 2007(Unit: Millions of Yen)
Items |
For the Third quarter |
For the Third quarter |
1. Cash flows from operating activities |
|
|
Net cash (used) provided by operating activities |
32,070 |
(7,832) |
2. Cash flows from investing activities |
|
|
Net cash (used) provided by investing activities |
(21,430) |
(2,648) |
3. Cash flows from financing activities |
|
|
Net cash (used) provided by financing activities |
(4,512) |
17,129 |
4. Effect of exchange rate changes on |
(288) |
1,800 |
5. Net (decrease) increase in cash & cash equivalents |
5,840 |
8,449 |
6. Cash & cash equivalents at beginning 7. Cash & cash equivalents at end |
323,685 329,525 |
340,171 348,620 |
(2)For the nine-month period ended December 31, 2007(Unit: Millions of Yen)
Items |
For the nine-month |
For the nine-month |
1. Cash flows from operating activities |
|
|
Net cash (used) provided by operating activities |
61,702 |
14,727 |
2. Cash flows from investing activities |
(48,710) |
(22,451) |
Net cash (used) provided by investing activities |
(9,421) |
(3,610) |
3. Cash flows from financing activities |
|
|
Net cash (used) provided by financing activities |
(56,409) |
36,712 |
4. Effect of exchange rate changes on |
(1,033) |
3,291 |
5. Net decrease in cash & cash equivalents |
(5,161) |
51,120 |
6. Cash & cash equivalents at beginning 7. Cash & cash equivalents at end |
334,686 329,525 |
297,500 348,620 |
6. Consolidated Segment Information
(1) For the three-month ended December 31, 2007(Unit: Millions of Yen)
Items |
For the Third quarter |
For the Third quarter |
Change |
||||
Amount |
Component proportion |
Amount |
Component proportion |
Amount |
Ratio |
||
Net sales |
Consumer |
271,402 |
43.7% |
276,279 |
44.0% |
(4,877) |
-1.8% |
Commercial |
67,489 |
10.9% |
66,527 |
10.6% |
962 |
1.4% |
|
Component |
255,235 |
41.1% |
244,751 |
38.9% |
10,484 |
4.3% |
|
Others |
26,679 |
4.3% |
40,971 |
6.5% |
(14,292) |
-34.9% |
|
Sub-total |
620,805 |
100.0% |
628,528 |
100.0% |
(7,723) |
-1.2% |
|
Corporate & |
(7,130) |
- |
(13,577) |
- |
6,447 |
- |
|
Total |
613,675 |
- |
614,951 |
- |
(1,276) |
-0.2% |
|
Operating |
Consumer |
5,835 |
17.6% |
2,103 |
8.9% |
3,732 |
177.5% |
Commercial |
2,573 |
7.7% |
2,167 |
9.1% |
406 |
18.7% |
|
Component |
24,107 |
72.6% |
17,735 |
75.0% |
6,372 |
35.9% |
|
Others |
690 |
2.1% |
1,653 |
7.0% |
(963) |
-58.3% |
|
Sub-total |
33,205 |
100.0% |
23,658 |
100.0% |
9,547 |
40.4% |
|
Corporate & |
(6,985) |
- |
(8,592) |
- |
1,607 |
- |
|
Total |
26,200 |
- |
15,066 |
- |
11,154 |
74.0% |
|
(2) For the nine-month period ended December 31, 2007(Unit: Millions of Yen)
Items |
For the nine-month period |
For the nine-month period |
Change |
||||
Amount |
Component proportion |
Amount |
Component proportion |
Amount |
Ratio |
||
Net sales |
Consumer |
746,085 |
42.0% |
778,057 |
43.4% |
(31,972) |
-4.1% |
Commercial |
198,064 |
11.1% |
198,810 |
11.1% |
(746) |
-0.4% |
|
Component |
735,654 |
41.4% |
700,680 |
39.1% |
34,974 |
5.0% |
|
Others |
98,233 |
5.5% |
114,509 |
6.4% |
(16,276) |
-14.2% |
|
Sub-total |
1,778,036 |
100.0% |
1,792,056 |
100.0% |
(14,020) |
-0.8% |
|
Corporate & |
(21,389) |
- |
(35,644) |
- |
14,255 |
- |
|
Total |
1,756,647 |
- |
1,756,412 |
- |
235 |
0.0% |
|
Operating |
Consumer |
5,342 |
7.4% |
(1,811) |
-3.2% |
7,153 |
- |
Commercial |
4,867 |
6.7% |
9,360 |
16.4% |
(4,493) |
-48.0% |
|
Component |
59,939 |
82.9% |
46,528 |
81.4% |
13,411 |
28.8% |
|
Others |
2,140 |
3.0% |
3,055 |
5.4% |
(915) |
-30.0% |
|
Sub-total |
72,288 |
100.0% |
57,132 |
100.0% |
15,156 |
26.5 |
|
Corporate & |
(22,257) |
- |
(26,225) |
- |
3,968 |
- |
|
Total |
50,031 |
- |
30,907 |
- |
19,124 |
61.9 |
|
(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.
