Consolidated Financial Report [IFRS]
For the 9-month period ended December 31, 2015
Representative: Hideaki Takahashi, President and Chief Executive Officer
Contact: Tatsuya Minami, General Manager, Corporate Communications Dept. Tel: +81-3-6774-3077
January 28, 2016
Note: Figures are rounded off to the nearest million yen.
Performance for the Third Quarter Ended December 31, 2015 (April 1, 2015 to December 31, 2015)
Operating Results (% indicates the rate of +/- compared with the previous fiscal year)
Revenues
Operating Income
Income before Income Taxes
Net Income
Net Income attributable to Shareholders of the Parent Company
Comprehensive Income
Dec., 2015
Million yen
%
Million yen
%
Million yen
%
Million yen
%
Million yen
%
Million yen
%
772,898
7.9
79,200
38.0
77,727
25.8
55,977
14.9
55,583
16.3
48,913
(34.1)
Dec., 2014
716,351
―
57,376
―
61,775
―
48,738
―
47,801
―
74,265
―
Earnings per Share attributable to Shareholders of the Parent Company (Basic)
Earnings per Share attributable to Shareholders of the Parent Company (Diluted)
Dec., 2015
Yen
Yen
129.99
―
Dec., 2014
111.78
―
Financial Standing
Dividends
Dividends per Share
1Q
2Q
3Q
Term-end
Annual
Mar., 2015
Yen
Yen
Yen
Yen
Yen
―
10.00
―
13.00
23.00
Mar., 2016
―
13.00
―
Mar., 2016
(Forecast)
13.00
26.00
Note: Revision of the latest forecasts of results : No
Business results forecast for the year ending March 31, 2016 (Apr.1, 2015 to Mar.31, 2016)
Changes in major subsidiaries during the period under review: Yes
Newly included : ―
Excluded : Shanghai Hitachi Cable Co., Ltd.
Changes in accounting policies and accounting estimates
Changes in accounting policies requested by IFRS: None
Changes other than those in (i): None
Changes in accounting estimates: None
Numbers of shares issued (Common stock)
Number of shares outstanding at end of period
Dec., 2015
428,904,352
Mar., 2015
428,904,352
Dec., 2015
1,323,580
Mar., 2015
1,303,157
Dec., 2015 (3Q)
427,584,643
Dec., 2014 (3Q)
427,637,633
(Including treasury stock)
Number of treasury stock outstanding at end of period
Average number of shares issued during the term
- Table of Contents
-
Qualitative Information Regarding Financial Results for the Nine Months Ended December 31, 2015
- Information Regarding Operating Results
Total Asset | Total Equity | Equity attributable to Shareholders of the Parent Company | Equity attributable to Shareholders of the Parent Company Ratio | Equity per Share attributable to Shareholders of the Parent Company | |
Dec., 2015 | Million yen | Million yen | Million yen | % | Yen |
1,060,181 | 513,662 | 503,971 | 47.5 | 1,178.66 | |
Mar., 2015 | 1,083,450 | 476,176 | 466,359 | 43.0 | 1,090.64 |
(% indicates the rate of +/- compared with the same term of the previous fiscal year)
Revenues | Operating Income | Income before Income Taxes | Net Income attributable to Shareholders of the Parent Company | Basic Earnings per Share | |||||
Full-year | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen |
1,040,000 | 3.5 | 100,000 | 18.5 | 97,000 | 12.3 | 68,000 | (3.6) | 159.03 |
Note: Revision of the latest forecasts of results : No
* Other Notes
*This quarterly consolidated financial report is not subject to the quarterly review procedure by external auditors that are based on Financial Instruments and Exchange Act. The quarterly review procedure has not yet finished at the point of releasing this financial summary.
*The forecast figures, with the exception of actual results, are based on certain assumptions and predictions of the management at the time of preparation. Changes in business conditions or underlying assumptions may cause actual results may differ from those projected. Please refer to "(3) Forecasts for the Fiscal Year Ending March 31, 2016, including Consolidated Operating Forecasts " on page 6 for precondition and assumption as the basis of the above forecasts.
1. Qualitative Information Regarding Financial Results for the Nine Months Ended December, 31, 2015…………..…………….. | 4 |
(1) Information Regarding Operating Results………………………………..……………………………………………… | 4 |
(2) Financial Condition…………………………………………………………………………………………………….… | 6 |
(3) Forecasts for the Fiscal Year Ending March 31, 2016, including Consolidated Operating Forecasts…………………… | 6 |
2. Condensed Interim Consolidated Financial Statements…………………………………………………………………………… | 7 |
(1) Condensed Interim Consolidated Statement of Financial Position……………………………………………………… | 7 |
(2) Condensed Interim Consolidated Statement of Income and Condensed Interim Consolidated Statement of Comprehensive Income…………………………………………………………………………………………….…… | 9 |
[ Condensed Interim Consolidated Statement of Income ]……………………………………………………………… | 9 |
[ Condensed Interim Consolidated Statement of Comprehensive Income ]……………………………………………. | 10 |
(3) Condensed Interim Consolidated Statement of Changes in Equity……………………………………………………… | 11 |
(4) Condensed Interim Consolidated Statement of Cash Flows…………………………………………………………….. | 12 |
(5) Segment Information…………………………………………………………………………………………………….. | 14 |
The global economy during the nine months ended December 31, 2015, remained on a modest growth track primarily in advanced countries, while the slowdown in emerging economies fueled uncertainty over future economic prospects. The U.S. economy continued to experience upturns supported by consumer spending, and the European market continued its slow recovery as a whole. Economies in emerging countries and resource-driven countries continued to grow at a slow pace as a result of the Chinese economy showing more signs of an accelerated slowdown and a drop in resource prices. Amid such situations, the Japanese economy was stuck in a holding pattern due to factors, such as the impact of the slowdown in emerging economies on exports and production.
Among the industries in which Hitachi Metals Group (the "Group") operates, the automobile industry experienced strong demand in the United States; however, the domestic market saw continued inventory adjustments of small cars and demand was weak in China and some emerging countries. Steel production was on a declining path due to the effects of an output cut of small cars and the worsened balance of supply and demand in Asia accompanied by the inventory adjustments. Further, public investment fell, while the Japanese housing construction market recovered. The demand in the electronics industry fell due to weaker sales of personal computers and air-conditioning units.
Under these business circumstances as described above, the conversion of Waupaca Foundry, Inc. into a consolidated wholly owned subsidiary as of November 10, 2014, contributed to the financial results of the Group for the nine months ended December 31, 2015. When compared with those for the nine months ended December 31, 2014, revenues of the Group increased by 7.9% to ¥772,898 million and operating income increased by ¥21,824 million to ¥79,200 million. Operating income increased mainly due to posting gains on business reorganization and others of ¥30,232 million in other income arising from a transfer of shares equivalent to 51% of the issued shares of Hitachi Tool Engineering, Ltd. (currently named Mitsubishi Hitachi Tool Engineering, Ltd.) to Mitsubishi Materials Corporation as of April 1, 2015, despite a decrease in gross profit. For the nine months ended December 31, 2015, income before income taxes increased by ¥15,952 million to ¥77,727 million and net income attributable to shareholders of the parent company increased by ¥7,782 million to ¥55,583 million, compared with the same period of the year ended March 31, 2015.
Results by business segment are as follows: Note that revenues for each segment include intersegment revenues and transfers.
Revenues in the High-Grade Metal Products and Materials segment for the nine months ended December 31, 2015, were
¥183,130 million, a decrease of 5.5% as compared with those for the nine months ended December 31, 2014. Operating income of the segment increased by ¥20,656 million to ¥46,783 million for the same period, partly due to gains on business reorganization and others of ¥25,931 million arising from the transfer of shares in Hitachi Tool Engineering, Ltd. (currently named Mitsubishi Hitachi Tool Engineering, Ltd.) on April 1, 2015.
While showing a decline in sales of tool steels in China and the Association of Southeast Asian Nations, overall sales remained at the same level as compared with those for the nine months ended December 31, 2014, due to robust demand for automotive mold materials in Japan as well as a further shift towards high-value-added products in product lines. For industrial equipment materials, despite steady demand for other industrial components for overseas markets, sales fell compared to those for the nine months ended December 31, 2014, due to a continued partial production adjustment for automobile-related materials. Sales of aircraft-related and energy-related materials considerably increased because of continuing robust demand, as well as reflecting the performance of Hitachi Metals MMC Superalloy, Ltd., which became a consolidated subsidiary of the Group from the second quarter of the fiscal year ended March 31, 2015. Sales of alloys for electronic products, both display-related materials and semiconductors and other package materials, decreased as compared to those for the nine months ended December 31, 2014.
Sales of rolls showed an increase due to growth in exports during the nine months ended December 31, 2015. Sales of injection molding machine parts remained steady year-on-year, thanks to robust demand mainly for large machinery.
Sales of amorphous metals decreased as compared with those for the nine months ended December 31, 2014, due to a drop in demand for China, the major market for the products.
Revenues in the Magnetic Materials and Applications segment for the nine months ended December 31, 2015, were ¥91,631 million, a decrease of 10.0% as compared with those for the nine months ended December 31, 2014. Operating income of the segment decreased by ¥4,725 million to ¥6,813 million for the same period.
Sales of rare earth magnets decreased as compared with those for the nine months ended December 31, 2014, because of the slowdown in demand for industrial equipment and household appliances, despite strong demand in automotive electronic components for electric power steering and hybrid automobiles, supported by strong demand in the automobile markets in the United States and Europe. Sales of ferrite magnets increased due to solid demand for automotive electronic components and household appliance parts, both in Japanese and overseas markets.
Hitachi Metals Ltd. issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 06:21:34 UTC
Original Document: http://www.hitachi-metals.co.jp/e/ir/pdf/ifrs/ifrs1512e.pdf