Improving the Profitability of the Ceramic Components Business through High-Value-Added Products

「Revenue in the ceramic components business was ¥63,797 million, up 2.1% year on year, while segment profit was ¥24,573 million, down 9.3%.」

「While market conditions weakened in automotive-related products and the recovery expected in the second half for general-purpose memory applications in the semiconductor-related business was delayed, next-generation high-speed communications remained at a high level throughout the fiscal year. In addition, substantial production increases began in the fourth quarter with the launch of the next model.」

「In this business, information and communications remained solid, while market conditions weakened in the semiconductor and automotive-related businesses. As a result, revenue for the six months ended in the current interim consolidated accounting period fell 5.8% year on year to ¥28,950 million, and segment profit fell 16.0% to ¥10,945 million.」

「Revenue in the ceramic components business was ¥62,487 million, up 17.4% year on year, and segment profit was ¥27,086 million, up 35.3%.」

「As a result, revenue for the six months ended in the current interim consolidated accounting period rose 25.4% year on year to ¥30,718 million, and segment profit rose 45.2% to ¥13,036 million.」

「In the ceramic components business, recovery for the Chinese market was delayed, but products for new-energy vehicles and semiconductor manufacturing equipment performed solidly, and business expanded in new markets. As a result, revenue was ¥53,232 million, up 6.3% year on year, and segment profit was ¥20,026 million, down 0.9%.」

「In this business, orders gradually improved as the impact of market adjustments eased, particularly in information and communications, while demand remained solid mainly for EVs and semiconductor manufacturing equipment, and orders increased in new markets. On the other hand, the full-scale recovery of some high-value-added products was delayed due to the slow recovery of the Chinese economy. As a result, revenue for the nine months ended in the third quarter of the current consolidated fiscal year rose 1.7% year on year to ¥39,222 million, while segment profit fell 9.5% to ¥14,725 million.」

「Despite increases in purchased materials and electricity costs, operating profit rose 10.6% year on year to ¥20,142 million due to increased high-value-added products and ongoing process and productivity improvements」

「Despite increases in purchased materials and electricity costs, operating profit rose 20.0% year on year to ¥16,039 million due to ongoing process and productivity improvements. Ordinary profit rose 22.9% to ¥16,982 million, also benefiting from foreign exchange gains, while quarterly net profit attributable to owners of the parent rose 25.5% to ¥11,934 million.」

「Despite increases in purchased materials and electricity costs, operating profit rose 33.9% year on year to ¥10,616 million due to ongoing process and productivity improvements. Ordinary profit rose 50.5% to ¥12,219 million, also benefiting from the yen's depreciation, while quarterly net profit attributable to owners of the parent rose 54.5% to ¥8,604 million. The operating margin was 35.8%, the highest ever for the period.」

「In the ceramic components business, products for EVs in the automotive business and differentiated 5G-related products in the information and communications business performed well. We also continued to work on improving profitability through higher yields and process improvements. The segment profit margin for the consolidated fiscal year was 39.1%, a substantial improvement from the previous consolidated fiscal year.」

「Regarding profit, operating profit rose 76.4% year on year to ¥13,361 million, ordinary profit rose 86.4% to ¥13,819 million, and quarterly net profit attributable to owners of the parent rose 87.3% to ¥9,511 million, due to increased high-value-added products, process improvements and higher yields.」

「The three-year structural reform program was completed by the end of the previous fiscal year, and the shift to high-margin products progressed smoothly. Revenue rose 26.6% year on year to ¥24,722 million. Regarding profit, as a result of efforts to improve margins by increasing strategic high-value-added products and improving productivity, operating profit rose 69.2% to ¥7,926 million, ordinary profit rose 74.8% to ¥8,118 million, and quarterly net profit attributable to owners of the parent rose 76.5% to ¥5,567 million.」

「Regarding profit, as a result of efforts to improve margins by increasing strategic high-value-added products and improving productivity, operating profit rose 47.7% year on year to ¥3,182 million, ordinary profit rose 49.9% to ¥3,236 million, and quarterly net profit attributable to owners of the parent rose 53.0% to ¥2,211 million.」

「In the ceramic components business, differentiated products leveraging materials and core technologies performed solidly, and we worked to strengthen the business foundation and improve profitability, including by focusing on inventory reduction through yield improvements and shorter lead times. The segment profit margin for the consolidated fiscal year was 30.1%.」

「In this business, we advanced investments in growth areas, improvement initiatives and sales expansion to reform the earnings structure for further future growth. As a result, revenue for the nine months ended in the third quarter of the current consolidated fiscal year rose 3.8% year on year to ¥24,704 million, while segment profit rose 10.5% to ¥7,386 million.」

「As a result, revenue for the six months ended in the second quarter of the current consolidated fiscal year fell 4.0% year on year to ¥19,533 million. Operating profit rose 12.9% to ¥4,685 million as a result of efforts to improve margins by increasing strategic high-value-added products and improving productivity, marking a record high for a six-month period ending in the second quarter.」

「Regarding profit, as a result of efforts to improve margins by increasing strategic high-value-added products and improving productivity, operating profit fell 3.5% year on year to ¥2,154 million, ordinary profit fell 2.0% to ¥2,158 million, and quarterly net profit attributable to owners of the parent fell 4.6% to ¥1,445 million.」

「In this business, our differentiated products, an area of strength, performed solidly, and we worked to strengthen the business foundation to further improve profitability.」

「Demand for high-value-added products for next-generation growth markets, including products for automotive electrification and next-generation communications standards, remained solid.」

「Demand for high-value-added products for next-generation growth markets remained generally firm.」

「Under these market conditions, we worked to reduce costs through productivity and yield improvements.」

「Under these market conditions, we worked to reduce costs by increasing differentiated products and improving productivity and yields.」

「Profitability improved due to the revenue contribution from high-value-added products, cost reductions and other factors.」

「The business performed well, supported by the revenue contribution from those high-value-added products, cost reductions and other factors.」

「Profitability remained solid, supported by the revenue contribution from high-value-added products, cost reductions and other factors.」

「Profitability improved, with results exceeding expectations due to increased sales of high-value-added products, cost reductions and other factors.」

「The results exceeded expectations, mainly due to the revenue contribution from high-value-added products.」