OMRON Announces Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2006.Kyoto, Japan, Jan 30, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - OMRON Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 6645; US: OMRNY), a global leader in automation, sensing and control technology, has announced its consolidated financial results for the nine months ended December 31, 2005. The Group's net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight totaled JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 442,755 million, a 1.5 percent decrease from the same period in the previous fiscal year. The decrease reflected the substantial effect of the transfer of the ATM and other information equipment business to an equity affiliate in October 2004. However, despite a weak market for consumer and commerce components for IT and digital-related products caused by inventory adjustments that persisted until the first half of the fiscal year, net sales excluding the transferred information equipment business increased 4.8 percent over the same period in the previous fiscal year as a result of steady sales growth of factory automation control systems, automotive electronic components and other core OMRON Group products supported by firm demand from capital investment. Regarding income, with the decrease in net sales due to the transfer of the information equipment business, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. decreased 4.0 percent from the same period in the previous fiscal year to JPY 44,009 million. However, income before income taxes was JPY 47,059 million, a 9.2 percent increase from the same period in the previous fiscal year, and net income was JPY 26,161 million, a 5.4 percent increase from the same period in the previous fiscal year. Consolidated Financial Summary for the Nine Months ended December 31, 2005
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(yen millions)
Nine Months ended December 31, Year Ended
2005 % 2004 % March 31,2005
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Operating Results
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Net Sales 442,755 (1.5) 449,607 7.9 608,588
Operating Income 44,009 (4.0) 45,845 22.8 56,111
Income Before Taxes 47,059 9.2 43,111 23.9 52,548
Net Income 26,161 5.4 24,819 45.1 30,176
Net Income/Share (Y) 110.25 103.99 126.52
Net Income/Share, Dil.(Y) 110.21 102.07 124.75
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Financial Position
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Total Assets 557,072 573,275 585,429
Total Sh'holders' Equity 362,894 306,780 305,810
Sh'holders' Equity Ratio 65.1 53.5 52.2
Sh'holders' EPS (yen) 1,548.47 1,288.60 1,284.81
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Cash Flows
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Net Cash from
Operating Activities 24,752 36,449 61,076
Net Cash from
Investing Activities (31,289) (27,548) (36,050)
Net Cash from
Financing Activities (26,296) (35,991) (40,684)
Cash and Cash Equivalents
at End of Period 49,699 68,831 80,619
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Results by Business Segment --Industrial Automation Business-- In Japan, sales of the safety business and quality solutions business, which OMRON has positioned as strategic growth businesses, remained firm from the first half of the fiscal year, in addition to a recovery in sales of products for the semiconductor and digital appliance Any apparatus controlled by a computer. It may refer to an actual household appliance (coffee maker, toaster, etc.) that is computerized, but often refers to a handheld device such as a pager, cellphone or PDA. See Internet appliance. industries, which are emerging from an inventory adjustment phase. As a result, overall domestic sales increased from the same period in the previous fiscal year. Overseas, sales of products to the automobile industry automobile industry, the business of producing and selling self-powered vehicles, including passenger cars, trucks, farm equipment, and other commercial vehicles. in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. increased, as did sales of inverters and servomotors in Europe. Foreign currency translation also helped increase sales. Sales were strong in Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. and Greater China, where exports continue to grow briskly brisk adj. brisk·er, brisk·est 1. Marked by speed, liveliness, and vigor; energetic: had a brisk walk in the park. 2. . As a result, segment sales were JPY 198,984 million, a 6.1 percent increase from the same period in the previous fiscal year. --Electronic Components Business-- In Japan, overall sales of products such as relays for air conditioners Conditioners used on leather take many shapes and forms. They are used mostly to keep leather from drying out and deteriorating. A very old and widely used conditioner is dubbin. and electronic components for the amusement industry were weak due to inventory adjustments in the consumer and commerce industry that have continued from the second half of the previous fiscal year. In addition, sales of backlights for mobile phones and large-screen LCD (Liquid Crystal Display) A display technology that uses rod-shaped molecules (liquid crystals) that flow like liquid and bend light. Unenergized, the crystals direct light through two polarizing filters, allowing a natural background color to show. televisions were down due to intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: price competition. Overseas, sales in the growing field of products for the IT and mobile phone market began to increase as a result of OMRON's efforts to strengthen sales and marketing in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe and to expand production capacity and reinforce sales for the rapid growth of the China business. In the electronic appliance and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment markets, overall sales were sluggish, with weak sales of communications relays against the backdrop Backdrop may refer to:
The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in European business conditions and restrained public works public works pl.n. Construction projects, such as highways or dams, financed by public funds and constructed by a government for the benefit or use of the general public. Noun 1. investments in China, and greater price competition for relays for electronic appliances. As a result, segment sales were JPY 72,017 million, a 5.3 percent decrease from the same period in the previous fiscal year. --Automotive Electronic Components Business-- Sales in all areas were solid due to firm global automobile production volume and the use of OMRON Group products that meet needs for automobile safety “Passive safety” redirects here. For nuclear safety, see Passive nuclear safety. Automobile safety is the avoidance of automobile accidents or the minimization of harmful effects of accidents, in particular as pertaining to human life and health. and environmental friendliness to match customers' new vehicle investment. As a result, segment sales were JPY 55,583 million, a 17.8 percent increase from the same period in the previous fiscal year. --Social Systems Business-- Sales decreased significantly due to the transfer of the ATM and other information equipment business to an equity affiliate in October 2004. In the public transportation systems business, despite strong contributions from renovation demand and equipment deliveries related to the opening of new train lines and introduction of IC cards, sales decreased from the same period in the previous fiscal year, when there was major demand associated with the issue of newly designed banknotes. In the security solutions business, sales grew favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , centered on demand from large customers. As a result, segment sales were JPY 52,241 million, a 34.7 percent decrease from the same period in the previous fiscal year. --Healthcare Business-- In Japan, sales of digital blood pressure monitors, digital thermometers, body composition monitors and other products were favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and increased over the same period in the previous fiscal year. Overseas, sales of digital blood pressure monitors in the United States declined due to slack 1. (operating system) slack - Internal fragmentation. Space allocated to a disk file but not actually used to store useful information. 2. (jargon) slack demand, but in Europe, Southeast Asia and China, sales of digital blood pressure monitors, a core product, increased from the same period in the previous fiscal year. As a result, segment sales were JPY 44,864 million, a 16.3 percent increase from the same period in the previous fiscal year. --Other Businesses-- Among existing businesses, in the entertainment business, competition continued to intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: for commercial game machines, including printed sticker machines, but overall sales increased over the same period in the previous fiscal year due to steadily expanding sales of content for cellular phones and other new businesses. In the computer peripheral business, IT investment recovered against the backdrop of improved corporate earnings, and sales of products such as uninterruptible power supplies See UPS. (hardware) Uninterruptible Power Supply - (UPS) A battery powered power supply unit that is guaranteed to provide power to a computer in the event of interruptions in the incoming mains electrical power. increased. However, sales of the commissioned software business declined from the same period in the previous fiscal year. In new business themes, sales of the radio frequency identification See RFID. (RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. ) business grew steadily along with the trend toward practical application of IC tags in Japan and overseas. As a result, segment sales totaled JPY 19,066 million, a 5.4 percent decrease from the same period in the previous fiscal year. Financial Condition Total assets were JPY 557,072 million, a decrease of JPY 28,357 million from the end of the previous fiscal year. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was JPY 362,894 million, an increase of JPY 57,084 million from the end of the previous fiscal year. As a result, the ratio of shareholders' equity to total assets increased to 65.1 percent from 52.2 percent at the end of the previous fiscal year. As for cash flow, net cash provided by operating activities was JPY 24,752 million, a decrease of JPY 11,697 million from the same period in the previous fiscal year. Net income increased, but the reserve for termination and retirement benefits decreased in connection with the return of the substitutional sub·sti·tu·tion n. 1. a. The act or an instance of substituting. b. The state of being substituted. 2. One that is substituted; a replacement. portion of the employees' pension fund, and there was an increase in income taxes payable. Net cash used in investing activities totaled JPY 31,289 million, an increase of JPY 3,741 million from the same period in the previous fiscal year, mainly due to investments for future growth and aggressive business acquisitions. Net cash used in financing activities was JPY 26,296 million, a decrease of JPY 9,695 million from the same period in the previous fiscal year, mainly due to the payment of cash dividends and acquisition of treasury stock. OMRON had also made substantial repayments of interest-bearing debt during the same period in the previous fiscal year. As a result, cash and cash equivalents at the end of the period were JPY 49,699 million, a decrease of JPY 30,920 million from the end of the previous fiscal year. Outlook for the Year Ending March 31, 2006 In the fourth quarter, although elements of uncertainty regarding the outlook for the global economy will remain, including high crude oil and raw material prices and the direction of the stock market and exchange rates, moderate growth is expected to continue overall, due to factors including an expectation that consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. and corporate capital investment will remain firm. Amid these conditions, the OMRON Group expects net sales for the fiscal year to remain in line with its initial forecast, following from third-quarter results and the ongoing recovery trend in the external environment. Income is also expected to be in line with the initial forecast, as the OMRON Group invests aggressively for future growth while relentlessly promoting structural improvements toward realizing a strong profit structure. Projected Results for the Year Ending March 31, 2006 (Unchanged from Oct. 30, 2005)
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(yen millions)
Forecast for March 31, 2006
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Net Sales 625,000
Income before taxes 63,000
Equity in income of affiliates 36,000
Net income 153.61
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For the full fiscal year, OMRON's performance forecast announced on October 31, 2005 remains unchanged. The assumed exchange rates for the fourth quarter are US$1 = JPY 115 and 1 euro = JPY 135. Note: Projections of results and future developments are based on information available to the Company at the present time, as well as certain assumptions judged by the Company to be reasonable. Various factors could cause actual results to differ materially from these projections. Major factors influencing OMRON's actual results include, but are not limited to, (i) the economic conditions affecting the Company's businesses in Japan and overseas, (ii) demand trends for the Company's products and services, (iii) the ability of the OMRON Group to develop new technologies and new products, (iv) major changes in the fund-raising fund-raising, large-scale soliciting of voluntary contributions, especially in the United States. Fund-raising is widely undertaken by charitable organizations, educational institutions, and political groups to acquire sufficient funds to support their activities. environment, (v) tie-ups or cooperative relationships with other companies, and (vi) movements in currency exchange rates and stock markets. About OMRON Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field of automation. Established in 1933 and headed by President Hisao Sakuta, Omron has more than 25,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components industries, and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. ), Europe (Amsterdam) and US (Chicago). The European organisation has its own development and manufacturing facilities, and provides local customer support in all European countries. For more information, visit Omron's Web site at www.omron.com. Source: OMRON Contact: OMRON Corporation Corporate Brand Communications Department Takayuki Nakamura takayuki_nakamura@omron.co.jp James Seddon james_seddon@omron.co.jp Tel: +81-3-3436-7202 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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