Mabuchi Group Motor Sales by Application
2009 (January 1st through September 30th)
In the period from January 1st through September 30th 2009, inventory adjustments for most markets in the global supply chain were nearly completed. Moreover, since the beginning of the second quarter, steady increases in demand continued toward recovery. However, the degree of recovery in demand varied depending on the country and region; recovery of global demand occurred in large part due to recovery in the U.S. and in Asia, excluding Japan.
Under the above-mentioned economic conditions, Mabuchi Group’s motor sales quantity decreased 31.3% from the same period last year, and the sales amount decreased 33.1% from the same period last year. Relative to the sales projection for the period from January 1st 2009 to 49.883 billion yen (decrease of 33.1% from the same period last year), and the motor sales, which account for most of the consolidated sales, totaled 49.829 billion yen (decrease of 33.1% from the same period last year).
The following are descriptions of trends and the status of each motor market by application:
Automotive Products Market
The total sales of this market amounted to 20.917 billion yen (decrease of 33.3% from the same period last year). Auto sales increased due to economic stimulus measures by numerous countries. Specifically, auto sales in developing countries increased. Under these circumstances, sales of motors for power window lifters, our strategic products, exceeded initially estimated sales. The sales decrease thereof was relatively small compared with sales of motors for other automotive applications, due to the increase of vehicle models adopting power window equipment, and healthy sales in emerging markets. Compared with the same period last year, however, total automotive market sales decreased significantly.
Audio & Visual Equipment Market
The total sales of this market amounted to 7.627 billion yen (decrease of 41.6% from the same period last year). Sales of motors for in-car CD players, which account for the majority of motors for CD players, were on a recovery trend, and sales of motors for DVD players increased compared with initially estimated sales due to an increase of our market share. Compared with the same period last year, however, sales for these applications decreased substantially.
Optical & Precision Instruments Market
The total sales of this market amounted to 9.219 billion yen (decrease of 26.5% from the same period last year). While total sales decreased, sales of motors for both ink-jet printers and digital cameras recovered quicker than expected, and sales of motors for PC drives increased due to an increase of our market share.
Home Appliances, Power Tools, Toys & Hobbies Market
The total sales of this market amounted to 12.065 billion yen (decrease of 31.0% from the same period last year). The total sales remained sluggish although barber and beauty-related equipment, health-related equipment, and power tools and the like were on a recovery trend.
Total consolidated sales for the period from January 1st to September 30th, 2009 decreased 33.1% compared with the same period last year.
Cost reduction has been progressing owing to material cost reductions and falling prices for commodities such as copper, as well as through workforce adjustment and improvement of production cost efficiency at production sites. However, the fixed cost burden per motor increased due to reduced capacity utilization attributable to the dramatic decrease of sales and production quantities, and this factor depressed the profitability ratio compared with the same period last year.
In addition, although SG&A expenses were reduced compared with the same period last year due to company-wide cost-cutting activities, the reduction was not enough to cover the reduction of sales, and resulting operating income was 534 million yen (reduction of 90.9% from the same period last year).
Referring to non-operating income (loss), although the exchange loss in the previous period turned into a gain, pretax profit was 1.999 billion yen (reduction of 76.3% from the same period last year). This was attributable to lower interest rates and the corresponding reduction of interest income.
Net income before taxes and other adjustments was 1.555 billion yen for the period from January 1st to September 30th of 2009 (reduction of 78.4% from the same period last year) due to the reduction of the loss from write-down of securities and the compensation for product deficiency to customers as extraordinary loss in the previous period, though provisional retirement payments at certain overseas subsidiaries were posted as an extraordinary loss.
Net income for the period from January 1st to September 30th of 2009 was 4.212 billion yen (reduction of 10.1% from the same period last year) due to the reduction of tax burden by posting the reversal of deferred tax liability, which were previously posted to the undivided profit of our overseas consolidated subsidiaries, in the first quarter of the period.
