Mabuchi Group Motor Sales by Application
January 1- March 31, 2009
On the whole, the world economy in this period widely deteriorated since the drastic cooling of the economy from the second half of the previous year expanded. Similarly, in Japan decrease in import and production accelerated due to decline in domestic and foreign demand and pressure for inventory adjustment, and this continued significant economic downturn.
Under such economic circumstances, with respect to motor sales performance of Mabuchi Group, the sales volume decreased 44.9% compared with the same period of last year, and the sales amount decreased 47.9% compared with the same period of last year. The sales volume increased 4.8% and the sales amount increased 1.8% compared to the sales expectations in forecast for this first quarter in the full-year sales projection announced together with year-end financial statements for last year (January 1st, 2008 through December 31st, 2008). Thus, the sales for this first quarter decreased (47.9% from the same period of last year) to 12,229 million yen. The motor sales, which account for the most part of the sales, decreased (47.9% from the same period of last year) to 12,210 million yen.
Regarding manufacturing cost, although each production base is securing the reasonable number of personnel, burden of unit fixed cost is increasing due to lowering of capacity utilization caused by dramatic decrease in sales quantity from the second half of last year, and this is a factor contributing to depression of profit rate. Moreover, although Mabuchi Group-wide cost reduction activities decreased sales administrative expense from the same period of last year, this decrease was not sufficient to cover decrease in the sales quantity. Therefore, for this first quarter, we posted an operating loss of 1,290 million yen. Net loss for this quarter before taxes and other adjustments totaled 276 million yen. This resulted from recording of exchange gain due to the weaker yen at the end of this quarter compared with the beginning of fiscal 2009 and improvement of non-operating income and expense because of interest received and the like. Regarding net income and loss for this quarter, net income for this quarter totaled 2,878 million yen (102.5% increase from the same period of last year) since reversal of deferred tax liability, which had been recorded for undivided profit of overseas consolidated subsidiaries based on 2009 taxation system amendment bill passed on March 27, 2009, was recorded for this first quarter.
The following are the trend and sales in each application market segment of motor business, the main business of Mabuchi Group:
Automotive Products Market
The sales of this market segment decreased (53.3% from the same period of last year) to 4,941 million yen. Since the number of electrical components used for one automobile is continuously increasing for the realization of safety, convenience, amenity, and economic efficiency, the number of small motors, which are used for these components, for one automobile tends to increase. The sales of motors for car mirrors and door lock actuators, existing major applications of the motors, and the sales of unit motors for power window lifters, our strategic products, slightly exceeded originally expected sales. However, since worldwide car sales continued sluggish, the sales of this market widely decreased from the same period of last year.
Audio & Visual Equipment Market
The sales of this market segment decreased (58.7% from the same period of last year) to 1,665 million yen. The sales of motors for in-car CD players, which account for the most part of the motors for CD players, decreased due to continued sluggish car sales worldwide. However, the sales of motors for DVD players substantially exceeded originally expected sales due to smooth clearance of market inventory and increase in market share.
Information & Communication Equipment Market
The sales of this market segment decreased (39.7% from the same period of last year) to 2,146 million yen. However, the sales of motors for ink-jet printers and digital cameras slightly exceeded their originally expected sales, and the sales of motors for PC drives substantially exceeded the originally expected sales due to smooth clearance of market inventory and increase in market share.
Home Appliances, Power Tools, Toys & Hobbies Market
The sales of this market segment decreased (34.5% from the same period of last year) to 3,456 million yen. Although the sales of motors for electric toothbrushes, which once dropped in the first half of last year, slightly exceeded the originally expected sales, the sales of motors for the other applications, including beauty- and barber-related equipment such as hair driers and shavers, health-related equipment such as blood pressure meters and massagers, and power tools, remained sluggish.
