Mabuchi Group Motor Sales by Application
second quarter (January 1st through June 30th) of 2009
In this period, the drastic cooling of the world economy continued from the second half of the pervious year. In the middle of this period, however, steady movement toward recovery started. The Japanese economy also moved into a phase in which worst of the downturn is behind, inventory adjustment is almost completed, and export and production are gradually increasing.
Under such economic circumstances, with respect to motor sales performance of Mabuchi Group, the sales volume decreased 38.5% compared with the same period the previous year, and the sales amount decreased 39.8% compared with the same period the previous year. The sales volume increased 1.3% and the sales amount increased 2.1% compared to the sales expectations in forecast for this first half in the full-year sales projection announced together with year-end financial statements for the previous year (January 1st, 2008 through December 31st, 2008). Thus, the sales for this first half decreased (39.8% from the same period the previous year) to 29,140 million yen.
At the same time, regarding manufacturing cost, cost reduction is making progress mainly due to reduction in material cost caused by markdowns on commodities such as copper or due to securing of the reasonable number of personnel in production bases. However, lowering of capacity utilization caused by dramatic decrease in sales and production volumes increased burden of unit fixed cost, and this is a factor contributing to depression of profit rate compared with performance of the same period the previous year. Moreover, although sales administrative expense decreased compared with the same period the previous year due to the progress of Mabuchi Group-wide cost reduction activities, this decrease was not sufficient to cover decrease in sales. Therefore, for this second quarter, we posted an operating loss of 1,457 million yen. Ordinary income decreased (98.9% from the same period the previous year) to 63 million yen resulted from the recording of exchange gain due to the weaker yen at the end of this second quarter compared with the beginning of fiscal 2009 and improvement of non-operating income and expense because of interest received and the like. Net loss for this second quarter before taxes and other adjustments totaled 281 million yen due to the recording of extraordinary retirement allowances in some overseas subsidiaries as an extraordinary loss and the like. Regarding net income and loss for this second quarter, net income for this second quarter decreased (10.8% from the same period the previous year) to 2,724 million yen, since reversal of deferred tax liability, which had been recorded for undivided profit of overseas consolidated subsidiaries, was recorded for this second quarter due to introduction of an non-accrual system for dividends received from overseas subsidiaries according to 2009 taxation system amendment.
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 (43.6% from the same period the previous year) to 12,064 million yen. Although demand decline, which continues from the previous year, bottomed out, the sales of motors for car mirrors, door lock actuators and the like, which are major applications of the motors, were slightly lower than their originally expected sales. Under such circumstances, due to increase in types of vehicles equipped with power window lifters and favorable sales of power window lifters in emerging markets, the sales of unit motors for power window lifters, Mabuchi’s strategic motors, exceeded their originally expected sales. However, since worldwide car sales continued sluggish, the sales of this market segment widely decreased compared with the same period the previous year.
Audio & Visual Equipment Market
The sales of this market segment decreased (48.9% from the same period the previous year) to 4,351 million yen. The sales of motors for in-car CD players, which account for the most part of motors for CD players, decreased due to continued sluggish car sales worldwide. However, the sales of motors for DVD players substantially exceeded their originally expected sales due to increase in market share and the like.
Optical & Precision Instruments Market
The sales of this market segment decreased (27.6% from the same period the previous year) to 5,379 million yen. However, the sales of both motors for ink-jet printers and motors for digital cameras exceeded their originally expected sales. The sales of motors for PC drives substantially exceeded their originally expected sales due to increase in market share and the like
"Information & Communication Equipment Market" was renamed "Optical & Precision Instruments Market." However, applications remain unchanged.
Home Appliances, Power Tools, Toys & Hobbies Market
The sales of this market segment decreased (33.6% from the same period the previous year) to 7,306 million yen. At first, we expected that, compared with other market segments, steady demand for motors in this market segment would continue. However, the demand did not continue, and the sales of motors for beauty- and barber-related equipment, health-related equipment, power tools, and the like, namely, the sales of all the motors except motors for electric toothbrushes, remained sluggish compared with their expected sales. Only the sales of motors for electric toothbrushes exceeded their expected sales.
