Cost Improvement Initiatives for Unprofitable Products

「金から銅への材料仕様の見直しによる製造コストの最適化を進めるほか、金材料を使用している従来製品について適正売価の獲得に向けた取り組みを進めることにより、約23億円の利益改善を見込んでおります。」

「To reduce variable costs, we will continue the emergency expense-reduction measures implemented from the second half of the previous fiscal year, optimize manufacturing costs by reviewing material specifications and switching from gold to copper, and strengthen efforts to secure appropriate selling prices for existing products that use gold materials.」

「In the semiconductor devices business, an inventory valuation loss of ¥484 million was recorded on inventory whose production is being discontinued as production is optimized through the consolidation and integration of factories.」

「In the unit products business, consolidated net sales decreased to ¥19.561 billion, down ¥2.673 billion (12.0%) from the previous consolidated fiscal year, as the withdrawal from sales of products for non-strategic markets progressed steadily. In terms of earnings, however, consolidated operating income increased ¥334 million (60.9%) year on year to ¥882 million, due to growth in sales of power products for communications base stations.」

「As withdrawal from sales of unit products for nonstrategic markets progressed steadily, consolidated net sales for the business decreased by ¥3.013 billion, or 19.0%, year on year to ¥12.823 billion. In terms of earnings, however, the company recorded consolidated operating income of ¥250 million, compared with a consolidated operating loss of ¥76 million in the same quarter of the previous year.」

「In the unit products business, sales declined across the business as the withdrawal from sales of products for non-strategic markets progressed steadily. As a result, consolidated net sales in the business decreased to ¥8.135 billion, down ¥2.277 billion (21.9%) from the same quarter of the previous year. In terms of earnings, however, the Company recorded consolidated operating income of ¥3 million, compared with a consolidated operating loss of ¥271 million in the same quarter of the previous year.」

「In the unit products business, sales declined across the business as the withdrawal from sales of products for non-strategic markets progressed steadily. As a result, consolidated net sales in the business decreased to ¥3.543 billion, down ¥707 million (16.7%) from the same quarter of the previous year, while in terms of earnings, the Company recorded a consolidated operating loss of ¥198 million, compared with a consolidated operating loss of ¥402 million in the same quarter of the previous year.」

「In the LED lighting business within the semiconductor devices business, the carrying amounts of production facilities and other assets related to the business from which the Company decided to withdraw were reduced to their recoverable amounts, and the reduction of ¥184 million was recorded as a business structural reform expense.」

「In the semiconductor devices business, the Company recorded an inventory valuation loss associated with its withdrawal from the LED lighting business, which had remained unprofitable.」

「In the semiconductor devices business, the Company recorded an inventory valuation loss associated with its withdrawal from the LED lighting business, which had remained unprofitable.」

「In addition, sales withdrawal from unprofitable unit products continues to be advanced,」

「Product mix improved through structural reforms, and consolidated operating income increased ¥74 million (15.8%) year on year to ¥549 million.」

「In terms of earnings, the improved product mix resulted in consolidated operating income of ¥105 million, compared with a consolidated operating loss of ¥26 million in the same quarter of the previous year.」

「On the other hand, in terms of earnings, the improved product mix resulted in consolidated operating income of ¥89 million, compared with a consolidated operating loss of ¥60 million in the same quarter of the previous year, returning the business to profitability.」

「In terms of earnings, consolidated operating loss was ¥107 million, compared with an operating loss of ¥305 million in the same quarter of the previous year, due to an improved product mix.」

「In the power systems business, sales declined as the Company restrained sales of products for the AV and OA markets, including adapters for televisions and small printers, where profitability was challenging. However, consolidated net sales in the business increased to ¥22.378 billion, up ¥2.237 billion (11.1%) from the same quarter of the previous year, due in part to the recovery of products for mobile phone base stations in the communications market. In terms of earnings, the decline in sales of low-margin products resulted in a consolidated operating loss of ¥26 million, compared with a consolidated operating loss of ¥1.021 billion in the same quarter of the previous year, improving business earnings.」

「In terms of earnings, consolidated operating loss was ¥60 million, compared with an operating loss of ¥712 million in the same quarter of the previous year, as sales of low-margin products declined, indicating progress in improvement.」

「Accelerating the withdrawal from unprofitable products by transforming the product portfolio, primarily in the power-device division of the semiconductor devices business」

「In terms of earnings, although the Company proceeded with fixed-cost reductions, cost improvement activities for unprofitable products remained in progress」