Overview of the latest financial information
Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022
The global economy up to the third quarter of this fiscal year continues to be uncertain, mainly due to the hike in raw material / energy prices associated with the prolonged Russo-Ukrainian War; the impact of reduced automobile production due to a shortage of semiconductors; urban lockdown in China against COVID-19; and sudden exchange rate fluctuations caused by the hike in policy interest rates in the United States.
Although the COVID-19 infections have decreased moderatelyin Japan, there is no telling what will happen in the country's economy, mainly due to further hikes in resource prices caused by the prolonged Russo-Ukrainian War and a sharp decline in the value of the yen.
Under this economic situation, our group's Electrical and Electronic Components Business and Automotive Components Business were sluggish, but Equipment Business continued to be strong.
Our group's Electrical and Electronic Components Business failed to grow as the demand for digital equipment decreased in response to higher concerns about economic recession and global inflation. Looking at each product, Micro Radio Frequency (RF) Coaxial connectors for smartphones and routers saw decreased demand. With regard to Board-to-Board connectors, full-shielded connectors for high-performance laptops remained relatively strong, despite the slowdown in the PC market. With regard to HDD-related components, the demand for components for high-capacity HDDs has increased in response to the higher demand for data centers as cloud technology has improved.
With regard to Automotive Components Business, although we are being less affected by the reduced automobile production due to the lockdown in Shanghai, orders for our sensors and connectors did not fully recover because automobile manufacturers were not able to purchase sufficient components – such as semiconductors – necessary for producing the number of automobiles that matched the recovered demand and because the supply chain continued to be disrupted.
With regard to Equipment Business, general-purpose semiconductors such as memories saw slowing demand as fewer smartphones and PCs were shipped. However, demand for equipment for automobile semiconductors and power semiconductors – which we excel at – remained high, and semiconductor resin-sealing devices and molds used for manufacturing these semiconductors continued to be strong.
As a result, sales of the third quarter of the current consolidated fiscal year decreased 9.1 % to 45,531 million yen, compared with the prior year, also our operating income decreased 60.9% to 2,230 million yen, ordinary income decreased 35.4% to 4,149 million yen, and net income attributable to owners of parent was decreased 52.7 % to 2,342 million yen.