Performance fluctuations caused by changes in economic conditions and market supply and demand

「売上高は減少基調ながら、下げ幅は縮小し一部で回復の兆し。」

「During the interim consolidated accounting period, Japan's economy showed some signs of slowing in its recovery, affected by the slowdown in overseas economies and the impact of tariff measures imposed by the United States.」

「Led by strong corporate earnings and supported by improvements in employment and income conditions, some areas of personal consumption have shown signs of recovery. Capital investment and exports have also shown signs of recovery, and the economy is generally on a moderate recovery track. However, the outlook remains uncertain owing to downside risks, including the impact on personal consumption if continued price increases dampen consumer sentiment and the effects of U.S. trade policy.」

「However, downside risks arising from higher prices, persistently high interest rates in Europe and the United States, concerns over the outlook for the Chinese economy, and conditions surrounding the Middle East are creating uncertainty about the economic outlook.」

「Sales were ¥39,005 million, up 1.7% year on year, owing mainly to a decline in volume businesses for general-purpose products in the semiconductor products and display segments.」

「Sales declined because the company was unable to offset the impact of declining volume businesses for general-purpose products in both fields, which were affected by deteriorating semiconductor and display market conditions and the civil rehabilitation proceedings of a major business partner.」

「Production adjustments resulting from sluggish demand and adjustments to accumulated inventories following the easing of supply shortages are evident mainly in electronic equipment dependent on personal consumption, including consumer electronics, PCs and smartphones.」

「Production adjustments resulting from sluggish demand owing to higher prices, and adjustments to accumulated inventories following the easing of supply shortages, are evident mainly in electronic equipment dependent on personal consumption, including consumer electronics, PCs and smartphones.」

「As a result, sales were ¥41,924 million, down 3.5% year on year.」

「As supply constraints for products such as memory and liquid-crystal displays have eased, falling prices and declining demand resulting from persistently high customer inventories of those products have been observed, and the uncertain situation continues.」

「In terms of sales during the first quarter of the fiscal year under review, the company captured strong demand for semiconductor products despite difficult conditions caused by customer production adjustments resulting from component procurement difficulties that had emerged in the second half of the previous fiscal year and the lingering effects of China's lockdowns. However, sales declined owing to the loss of the LCD module business in the display segment after it shifted to direct transactions.」

「However, sales were ¥43,458 million, down 11.5% year on year, owing to substantial decline factors in the display segment, including changes in distribution channels, the decline following special demand and the plateau in demand under the GIGA School Initiative.」

「During the nine-month period under review, sales of semiconductor products, system products, and batteries and power equipment progressed steadily. However, a substantial decline in the display segment, owing to factors including changes in distribution channels, resulted in sales of ¥33,208 million, down 8.2% year on year.」

「Sales were ¥6,833 million, down 40.3% year on year, owing to a sharp decline in volume businesses for general-purpose products resulting from the decline following special demand for the organic EL business, the plateau in demand under the GIGA School Initiative, and the transfer of part of the LCD module business that had been scheduled for transfer.」

「Initially, the COVID-19 pandemic caused demand to decline for automotive and office equipment, our core businesses, while delays in part of the battery business, including for ESS applications, and in development projects resulted in a difficult start. However, from the second quarter, although weakness in office equipment and delays in the battery business and development projects continued, operating results recovered sharply owing to factors including increases from special and early demand in the LCD field and increased demand for volume businesses serving automotive equipment in the semiconductor and LCD fields.」

「During the nine-month period under review, operating results progressed steadily despite lower demand for office automation equipment and delays in part of the battery business. This reflected a recovery in demand for automotive equipment, special demand for the organic EL business, increased early demand for LCD modules used in educational equipment under the GIGA School Initiative, and increased demand for the memory business serving smartphone peripherals.」

「Although demand declined for our Group's core businesses serving automotive and office automation equipment, and some battery businesses were delayed, earnings progressed steadily as concentrated demand from the start of mass production of a new organic EL business, earlier-than-expected demand for LCD modules for educational equipment under the GIGA School initiative, and increased demand for touch panels for medical equipment and certain semiconductor businesses for smartphone peripherals contributed to results.」

「However, the timing of the containment of the infection remains uncertain. A decline in consumer sentiment caused by a global economic downturn has prompted customers to adjust production, resulting in a difficult business environment.」

「Since March, the impact of COVID-19 has led to inventory disposal following revisions to the production plans of some major customers, affecting operating results.」

「In industrial equipment, electronic components and devices, and other areas, production cuts have been particularly pronounced in industries affected by declining exports. Overall demand is weak, and a difficult environment continues.」

「A difficult environment has continued, with demand remaining weak owing to declining exports, particularly of industrial equipment to China.」

「Through these initiatives, sales lost from the downward trend in memory prices and lower demand for industrial equipment businesses and other products were offset by the LCD module, EMS and battery businesses.」

「From the fourth quarter, negative factors including a sharp decline in memory prices and the contraction of the business serving industrial equipment, particularly production machinery, prevented us from covering the previous period's sharp increase in sales, resulting in lower sales than the previous year.」

「In the communications equipment sector, demand for terminal equipment declined as replacement cycles lengthened. Capital investment was also weak because the industry was in a period of systems transformation ahead of the launch of the fifth-generation mobile communications system, or 5G.」

「In the electronics industry in which our group operates, semiconductor manufacturers of equipment and materials have continued to perform well, as demand for semiconductors installed in automotive and industrial equipment products has remained strong, continuing from the previous fiscal year.」

「In the electronic equipment sector, the equipment business, including foreign-material detection machines, maintained a business scale similar to that of the same quarter of the previous year. However, owing to lower demand for various modules, sales were ¥1,501 million, down 10.8% year on year.」

「In the electronics industry in which our group operates, exports of semiconductor manufacturing equipment have shown solid growth against a backdrop of strong semiconductor demand. Exports of electronic components and devices to emerging Asian countries, as well as related equipment businesses, have followed a similar trend.」

「In the electronics industry in which our group operates, exports of semiconductor manufacturing equipment have shown solid growth against a backdrop of strong semiconductor demand. Exports of electronic components and devices to emerging Asian countries, as well as related equipment businesses, have followed a similar trend.」

「The Group's customers may be affected by supply-and-demand trends and economic conditions in the markets in which they operate. Accordingly, changes in demand and other factors in those markets may affect the Group's business performance.」

「In the electronics industry in which our group operates, production by major domestic automakers is beginning to recover while exports of electronic components to China remain stagnant. Demand for components used in consumer electronics and industrial equipment is also showing signs of recovery.」

「While exports of electronic components to China remained weak, production adjustments by major domestic automakers, the Kumamoto earthquake and rapid foreign-exchange fluctuations put pressure on corporate earnings.」

「Demand for smartphones reached a plateau from the previous year, causing related components to remain sluggish, while the decline in electronic components for China became pronounced.」

「The Group's customers may be affected by supply-and-demand trends and economic conditions in the markets in which they operate. Accordingly, changes in demand and other factors in those markets may affect the Group's business performance.」