Earnings Release Conference Second Quarter of FY2022
(July 1, 2022 to September 30, 2022)
October 31, 2022
Murata Manufacturing Co., Ltd.
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Topics (1/2)
Financial Results of FY2021 1st Half
- Net sales were 920.2 billion yen, up 1.3% year on year, due to a significant increase in sales of lithium-ion secondary batteries for power tools in addition to the sales-increasing effect of the depreciation of the yen, although sales of SAW filters decreased for smartphones.
- Operating income was 195.0 billion, down 12.2% year on year, due to a drop in the operation rate and an increase in fixed costs despite profit-increasing effects such as the depreciation of the yen and cost reductions.
- The Company failed to achieve the projected financial results with net sales and operating income down 3.3% and 6.7% from the projection, respectively. Profits fell short of the projected results mainly due to a productivity loss from lower capacity utilization, resulting from sales decreases mainly in the consumer product market, and surges in material and energy prices, despite the effect of the depreciation of the yen.
Copyright © Murata Manufacturing Co., Ltd. All rights reserved. | 2 |
I will now provide an overview of our financial results.
First of all, I would like to thank you for your continued guidance and support of our IR activities. We would like to take this opportunity to express our sincere gratitude.
First, here is a summary of the results for 1H of the year.
Net sales were JPY920.2 billion, up 1.3% YoY. As background, our sales have been declining due to down trends in the smartphone and PC markets. Although there was an increase in revenue due to the weak yen and other factors, the result was a slight increase.
Operating income was JPY195 billion, down 12.2% YoY, due to a decrease in capacity utilization and an increase in fixed costs, despite the positive effects of the weaker yen and cost reductions.
Net sales and operating income fell short of forecasts by 3.3% and 6.7%, respectively. I will explain the reason for this later.
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Topics (2/2)
Projected Financial Results for FY2022
The Company has revised the projected financial results based on the results for the first-half of FY2022 and demand forecasts for the second half of FY2022.
Projected Financial Results
- Net sales are planned to decrease 5.7% from the previous projected result. Sales, mainly those of components, are expected to decline for communication and computers despite the effect of the depreciation of the yen.
- Operating income is planned to decrease 13.6% from the previous projected result. A loss in productivity from lower capacity utilization resulting from a decrease in production output is expected despite the effect of the depreciation of the yen.
Capital expenditures
- The amount has been revised to 210.0 billion yen, down 30.0 billion yen from the previous projected result, due to delays in the delivery of equipment.
Shareholder returns
• The annual dividend remains unchanged at 150 yen per share.
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We have revised our full-year forecast downward based on the 1H results and the demand outlook for 2H of the year.
Net sales decreased by 5.7% from the previous forecast. Operating income is planned to decrease by 13.6% from the previous forecast.
The forecast for capital investment has been revised downward by JPY30 billion from the previous forecast to JPY210 billion mainly due to the delay in the delivery of equipment.
Although we have revised our earnings forecast, with both sales and profits falling short of the previous forecast, we still plan to pay an annual dividend of JPY150 per share, an increase of JPY20 from the previous year.
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Second Quarter of FY2022
From July 1, 2022 to September 30, 2022 Consolidated Basis
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Financial Results
Quarterly Financial Results
(B JPY) | Operating income | Income before income taxes | (B JPY) | |||
Net income attributable to Murata Corporation | Sales | |||||
140.0 | 600.0 | |||||
INCOME | 120.0 | 500.0 | SALES | |||||||||||
100.0 | ||||||||||||||
400.0 | ||||||||||||||
80.0 | ||||||||||||||
300.0 | ||||||||||||||
60.0 | ||||||||||||||
200.0 | ||||||||||||||
40.0 | ||||||||||||||
20.0 | 100.0 | |||||||||||||
0.0 | 0.0 | |||||||||||||
FY19 | FY20 | FY21 | FY22 | |||||||||||
2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q |
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This is the performance trend.
I will explain the numbers later.
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Murata Manufacturing Co. Ltd. published this content on 07 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2022 06:31:04 UTC.