Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation Issued: Large Losses Incurred in First Half, Full Year FY3/13 Earnings Revised Down by Large Margin NOTE TO EDITORS: The following is an investment opinion issued by Investment Bridge Business Wire TOKYO -- January 7, 2013 Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on Ferrotec Corporation (JASDAQ:6890) reviewing first half earnings results and the downward revision to fiscal year March 2013 earnings estimates. Report Highlights *In the first half of FY3/13, sales fell by 43.9% year-over-year and a net loss of JPY6.15 billion was recorded on the back of a sudden and rapid deterioration in the photovoltaic related business, and weak sales of equipment related and electronic device business segments. Also large one off losses arising from business restructuring contributed to the large net loss. *Full year FY3/13 estimates have been revised down to reflect the weaker than expected first half and severe operating conditions, and now call for sales to fall by 35.1% year-over-year and a net loss of JPY8.3 billion. *The Bridge Report calls attention to Ferrotec's efforts to bring about a recovery in profitability from FY3/14 through the implementation of a "business restructuring plan," which calls for reductions in the scale of the photovoltaic business and other measures. Ferrotec Corporation manufactures and sells single and multi crystal silicon ingot manufacturing equipment and other products in the photovoltaic related segment. Ferrotec also supplies various parts, consumables and equipments for semiconductor, flat panel display (FPD), and LED applications in equipment related segment, and various thermoelectric temperature controllers for automobile seat and home appliances in electronic device segment. First half FY3/13 earnings deteriorated rapidly due to weak demand for products of all business segments and a particularly large decline in sales of the photovoltaic related business segment of 57.8% year-over-year resulting from reductions in government support measures in Europe and a deterioration in the overall market conditions for photovoltaic applications due to oversupply from manufacturers in China. Sales of the equipment related and electronic device segments also fell by large margins of 35.3% and 31.8% year-over-year respectively. Uncovered costs resulting from the large 43.9% year-over-year decline in total sales, and valuation and impairment accounting losses contributed to losses being seen at the operating, ordinary, and net income levels of JPY2.15, JPY2.71, and JPY6.15 billion respectively during the first half. Full year FY3/13 earnings have been revised down by large margins to reflect the weaker first half earnings and now call for sales to decline by 35.1% year-over-year to JPY39.0 billion, and losses at the operating, ordinary, and net levels of JPY3.4, JPY4.4, and JPY8.3 billion respectively. The Bridge Report highlights the business restructuring plan's goals of halting losses currently being seen and bringing about a recovery in profitability during the next fiscal year. Ferrotec will pursue the various measures in this plan with the goal of bringing about a "V" shaped recovery to earnings in the coming fiscal year March 2014. To view the full report, please go to the website at the URL listed below. http://www.bridge-salon.jp/report_bridge/archives/eng/6890/20121227.html About Bridge Report: Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies. Contact: Investment Bridge Co., Ltd. Kaoru Hosaka for Ferrotec Corporation +81-3-5842-5765 (Japanese correspondence only) email@example.com (English and Japanese correspondence)
Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation Issued: Large Losses Incurred in First
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