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28/07/2010 17:15 (562 Day 21:08 minutes ago) | |||||
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The FINANCIAL -- SANYO Electric Co., Ltd. (SANYO) announces its consolidated financial results for the first quarter of fiscal year ending March 2011 (FY2011) (April 1, 2010 to June 30, 2010).
SANYO recently reached an agreement with ON Semiconductor, a US-based semiconductor supplier, to sell SANYO 's semiconductor business. As the effect of this sale is being analyzed, the semiconductor business has been re-classified as a discontinued operation and the figures for the semiconductor business have been excluded from the figures in the first quarter consolidated financial results.
The first quarter of FY2011 ended with consolidated net sales of 387,392 million yen, an increase of 9.1% over the same period last year. Domestic sales ended at 146,349 million yen, a decrease of 4.9% over the same period last year; overseas sales showed strong growth of 19.9% over the same period last year and ended at 241,043 million yen.
"As for net sales by product category, the sales for the `Energy' business segment increased 6.6% over the same period last year to 103,317 million yen from strong sales of photovoltaic systems, especially in areas where there are government subsidy policies. For the `Electronic Device' business segment, the sales of optical pick-ups and capacitors experienced heightened demand and ended at 60,907 million yen, an increase of 48.2% over the same period last year, without sales of semiconductors. For the `Digital System' business segment, the sales ended at 78,807 million yen, a slight decrease of 0.4% over the same period last year, caused by weaker sales of digital cameras in spite of increased sales of TVs in North America as well as projectors. For the `Commercial' business segment, due to inhibited business investments, the sales decreased 4.4% over the same period last year to 67,327 million yen. For the `Consumer Electronics' business segment, the sales increased 19.4% over the same period last year and ended 55,322 million yen due to the robust demand for car electronics and home appliances," SANYO reports.
Operating income showed an increase of 19,659 million yen over the same period last year and turned a profit of 13,948 million yen, mainly because of the recovery of `Energy' and `Electronic Device' business segments. Income from continuing operations before income taxes reached 12,290 million yen, a recovery of 25,176 million yen over the same period last year. Net income attributable to SANYO showed a strong recovery of 28,953 million yen over the same period last year to end at 10,552 million yen.
Kenjiro Matsuba, a Senior Vice President of SANYO Electric and General Manager of the Finance H.Q., commented “In the first quarter, the global economy made a mild recovery despite continuing severe economic conditions such as those in Japan and Europe. SANYO was able to see strong increases in sales for photovoltaic systems, optical pick-ups and capacitors, as well as experience improved sales performance for finished goods, such as our car electronics, and steady sales of our LCD TVs and projectors." He added, “Our increased net sales and vigorous cost reduction activities led the recovery of the financial results, and SANYO was able to return to profitability in both operating income and net income attributable to the company."
The forecast for the first six months of FY 2011 ending March 2011 has been revised as below due to the strong performance of the first quarter financial results in addition to both the sale of the semiconductor business and the TOB in progress for SANYO Electric Logistics.
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