OMRON Announces Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2007.Tokyo, Japan, Jan 30, 2007 - (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; ADR ADR - Astra Digital Radio : OMRNY), a global leader in automation, sensing and control technology, has announced its consolidated financial results for the nine months ended December 31, 2006. In markets related to the Omron Group, sales of factory automation control systems, the Group's core business, remained strong, supported by robust capital investment. With the recovery in the electronic components industry, sales of consumer and commerce components for IT and digital-related products were also solid. In this environment, due in part to the effects of the weaker yen and business acquisitions, Omron Group 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 increased by 17.5 percent from the same period in the previous year to 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. 520,182 million. As for income for the nine-month period, the increase in net sales and efficient management of selling, general and administrative (SG&A) expenses resulted in 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. of JPY 42,409 million, a 3.6 percent decrease from the same period in the previous year. Excluding the JPY 11,915 million gain on the transfer of the substitutional portion of the employees' pension fund recorded in the same period in the previous year, operating income increased 32.1 percent. Income before income taxes was JPY 49,257 million, an increase of 4.7 percent from the same period in the previous year, due to factors including a JPY 10,141 million gain on the establishment of a retirement benefit trust and a JPY 5,915 million loss on the sale of land and buildings of the Tokyo Head Office (Minato-ku, Tokyo). Net income for the period was JPY 27,372 million, an increase of 4.6 percent over the same period in the previous year. Consolidated Financial Summary for the Nine Months ended December 31, 2006
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(millions of yen, except per share data and percentages)
Nine Months ended December 31, Year Ended
2006 % 2005 % March 31,2006
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Operating Results
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Net Sales 520,182 17.5 442,755 (1.5) 626,782
Operating Income 42,409 (3.6) 44,009 (4.0) 62,128
Income Before Taxes 49,257 4.7 47,059 9.2 64,352
Net Income 27,372 4.6 26,161 5.4 35,763
Net Income/Share (yen) 117.72 110.25 151.14
Net Income/Share, Dil.(yen) 117.65 110.21 151.05
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Financial Position
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Total Assets 624,118 557,072 589,061
Net Assets 373,810 362,894 362,937
Net Worth Ratio (%) 59.9 65.1 61.6
Net Assets per Share (yen) 1,621.75 1,584.47 1,584.07
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Cash Flows
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Net Cash provided by
Operating Activities 10,219 24,752 51,699
Net Cash used in
Investing Activities (34,069) (31,289) (43,020)
Net Cash provided by
Financing Activities 21,896 (26,296) (38,320)
Cash and Cash Equivalents
at End of Period 51,011 49,699 52,285
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Results by Business Segment Industrial Automation Business In Japan, sales of the safety business, application business and other strategic growth businesses grew steadily, reflecting brisk investment in improvement of quality and safety in order to enhance the functions of existing equipment. Sales of core factory automation control systems also surpassed the level of the same period in the previous year as a result of continued solid capital investment related to liquid crystal displays liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. , semiconductors and digital home appliances. Overseas, sales 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. and Europe were solid. In China, where high growth is projected, sales increased due to Omron's aggressive efforts in areas such as improvement of its sales capabilities, expansion of production capacity and introduction of new products. As a result, segment sales for the period totaled JPY 222,259 million, an increase of 11.7 percent compared with the same period in the previous year. Electronic Components Business In Japan, conditions in the semiconductor and machinery and equipment industries were strong, and the electronic components industry also maintained an expansion trend. In this environment, segment sales were generally solid. In November 2006, Omron acquired the optical communications Optical communications The transmission of speech, data, video, and other information by means of the visible and the infrared portion of the electromagnetic spectrum. components business of NHK NHK Nippon Hoso Kyokai (Japan Broadcasting Corporation) NHK Nihon Hoso Kyokai (Japanese Broadcasting Association) NHK Nihon Hikikomori Kyokai (anime) Spring Co., Ltd. to strengthen its position in this business. In December, Omron reached a basic agreement to purchase a semiconductor factory from Seiko Epson Seiko Epson Corporation (セイコーエプソン株式会社 Corporation, with the aim of reinforcing its semiconductor-related operations. Overseas, sales expanded in China amid steady growth in sales of consumer and commerce components. Sales were also solid 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. , Europe and 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. , centered on relays, a core product. In addition to the above, the miniature backlight back·light n. A type of spotlight, used in photography, that illuminates a subject from behind. tr.v. back·light·ed or back·lit , back·light·ing, back·lights business of OMRON PRECISION TECHNOLOGY Co., Ltd. (formerly Pioneer Precision Machinery Corporation), which became a consolidated subsidiary in August 2006, contributed to sales. Segment sales for the nine-month period were JPY 101,213 million, an increase of 40.5 percent compared with the same period in the previous year. Automotive Electronic Components Business Global automobile production volume was generally stable overall, and needs are increasing for car electronics 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. Against this backdrop, Omron's products continued to be adopted in new car models, contributing to strong sales in this segment. By area, sales in Japan were essentially unchanged from the same period in the previous year, but overseas sales were strong. In particular, sales in North America grew substantially as Omron launched new products such as wireless control devices and power window switches. As a result, segment sales for the nine-month period were JPY 67,288 million, an increase of 21.1 percent compared with the same period in the previous year. Social Systems Business In the public transportation systems business, sales increased substantially compared to the same period in the previous year, reflecting favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. demand for equipment upgrades and renewals and other projects related to the use of common IC cards among different railway companies, mainly in the Kanto area. In the traffic and road management solutions business, sales increased substantially, backed by strong demand for weigh-in-motion systems. As a result, segment sales for the nine-month period totaled JPY 60,641 million, an increase of 16.1 percent compared to the same period in the previous year. Healthcare Business In Japan, with expanding awareness of metabolic syndrome metabolic syndrome n. See syndrome X. Metabolic syndrome A group of risk factors for heart disease, diabetes, and stroke. (a condition with multiple risk factors that can easily cause lifestyle diseases such as diabetes, hypertension, hyperlipidemia hyperlipidemia /hy·per·lip·id·emia/ (-lip?i-de´me-ah) elevated concentrations of any or all of the lipids in the plasma, including hypertriglyceridemia, hypercholesterolemia, etc. and obesity), sales of pedometers and body composition analyzers increased strongly. Overseas, sales of digital blood pressure monitors, a core product, were weak in the United States, but the digital blood pressure monitor business was solid overall, with growth in other markets including Russia, Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. , China and Australia. As a result, segment sales for the nine-month period were JPY 48,293 million, an increase of 7.6 percent compared with the same period in the previous year. Others The others segment consists mainly of new businesses being explored and developed by the Business Development Group and development and expansion of other businesses that are not covered not covered Health care adjective Referring to a procedure, test or other health service to which a policy holder or insurance beneficiary is not entitled under the terms of the policy or payment system–eg, Medicare. Cf Covered. by internal companies. Among existing businesses, sales of the entertainment business continued to expand with strong sales of photo sticker vending machines vending machine, coin-operated, automatic device for selling goods. Many vending machines are capable of making change, and some of the more sophisticated ones accept paper money or credit cards. , a core product, and a steady increase in membership of mobile sites related to these machines. In the computer peripheral business, sales of 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. and other products grew strongly. Sales were also brisk in the growth areas of 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. ) equipment and insulation monitoring devices An insulation monitoring device monitors the ungrounded system between an active phase conductor and earth. It is intended to sound an alert when the impedance between the two conductors drops below a set value, usually 50 kΩ. . As a result, segment sales for the nine-month period were JPY 20,488 million, an increase of 7.5 percent compared with the same period in the previous year. Financial Condition As of December 31, 2006, total assets were JPY 624,118 million, an increase of JPY 35,057 million compared with the end of the previous fiscal year. The main factors included increases in inventories and short-term bank loans. Net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. increased JPY 10,873 million compared with the end of the previous fiscal year to JPY 373,810 million despite the increase from net income of JPY 27,372 million, due to factors including a JPY 10,666 million increase in treasury stock (which decreases net assets). As a result, the net worth ratio decreased to 59.9 percent from 61.6 percent at the end of the previous fiscal year. Regarding cash flow in the third quarter, net cash provided by operating activities was JPY 10,219 million, a decrease of JPY 14,533 million compared with the same period in the previous year, despite net income of JPY 27,372 million, due to factors including a gain on establishment of a retirement benefit trust and the increase in inventories. Net cash used in investing activities totaled JPY 34,069 million, an increase of JPY 2,780 million over the same period in the previous year. Despite a gain on the sale of land and buildings of the Tokyo Head Office, expenditures increased because of the acquisition of business entities, as well as other factors. Net cash provided by financing activities was JPY 21,896 million (an increase of JPY 48,192 million over the same period in the previous year due to the effect of repayments of debt in the same period in the previous year), mainly because of an increase in proceeds from short-term bank loans. As a result, cash and cash equivalents at the end of the nine-month period were JPY 51,011 million, a decrease of JPY 1,274 million from the end of the previous fiscal year. Outlook for the Fiscal Year Ending March 31, 2007 Despite lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. elements of uncertainty such as high raw material prices, a slowdown in the U.S. economy and exchange rate movements, firm 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 robust corporate capital investment can be expected in the fourth quarter. As a result, moderate growth is projected to continue. In markets related to the Omron Group, the market for factory automation control devices is expected to gradually expand, supported by corporate capital investment, and the market for consumer and commerce components for IT and digital products is also projected to continue on a recovery track. In regard to the forecast for the fiscal year, Omron will continue to work toward its current fiscal year policy of "Accelerated Growth with an Upswing Upswing An upward turn in a security's price after a period of falling prices. in Income," and, as a result expects to reach the figures announced on October 30, 2006.
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(yen millions)
Forecast for March 31, 2007
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Net Sales 740,000
Income Before Taxes 65,000
Net Income 37,500
Net Income per Share, Basic (yen) 162.69
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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 environment, (v) tie-ups or cooperative relationships with other companies, and (vi) movements in currency exchange rates and stock markets. About OMRON Corporation Headquartered in Kyoto, Japan, OMRON Corporation (TSE: 6645; NYSE NYSE See: New York Stock Exchange : OMRNY) is a global leader in the field of automation. Established in 1933 and headed by President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Hisao Sakuta, OMRON has more than 28,000 employees in over 35 countries working to provide products and services to customers in a variety of fields including industrial automation, electronic components, social systems (ticket gate machines, ticket vending machines, and traffic control) and healthcare. The company is divided into five regions and head offices are in Japan (Kyoto), Asia Pacific (Singapore), China (Shanghai), Europe (Amsterdam) and US (Chicago). For more information, visit OMRON's website at www.omron.com Source: OMRON Corporation Contact: OMRON Corporation Masaki Haruta Corporate Management Headquarters Accounting Group Tel: +81-75-344-7070 Copyright [c] 2007 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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