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OMRON Corporation Reports Fiscal 2012 Third Quarter Consolidated Performance

  OMRON Corporation Reports Fiscal 2012 Third Quarter Consolidated Performance

Business Wire

TOKYO -- January 30, 2013

OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated
performance for the third quarter of fiscal 2012, ending March 31, 2013.

Consolidated net sales for the nine months ended December 31, 2012, increased
2.4 percent compared with the same period of the previous fiscal year to JPY
463,681 million. Operating income decreased 7.6% to JPY 27,848 million, income
before income taxes increased 7.2% to JPY 28,216 million, and net income
attributable to shareholders increased 77.7% to JPY 20,684 million.

Note: All amounts are rounded to the nearest million yen.

1. Overview of Conditions

In the first nine months of fiscal 2012 (April – December 2012), although
sales of IAB (Industrial Automation Business) were sluggish, AEC (Automotive
Electronic Components Business), SSB (Social Systems, Solutions and Service
Business) and HCB (Healthcare Business) performed strongly, meaning the Omron
Group's net sales were essentially unchanged from the same period of the
previous fiscal year when temporary factors including the Great East Japan
Earthquake and floods in Thailand affected the business environment. The Omron
Group's perception of conditions in the nine months ended December 31, 2012 is
as follows.

Economic and Market Conditions by Region
Japan:   The automotive industry was firm but the semiconductor and other
          industries weakened, and business confidence worsened.
U.S.:     The automotive and other industries were firm, yet business
          confidence deteriorated overall.
Europe:   The slump continued, despite a sense that the economic downturn
          caused by financial instability had bottomed out.
China:    Despite solid demand, the growth rate slowed due to worsening
          economic conditions, etc.
          Conditions were firm in the emerging markets of ASEAN, including
Asia:     reconstruction demand in Thailand. However, the semiconductor
          industry weakened.

Conditions in the Omron Group's Primary Related Markets
Automotive-related:             Capital investment and component demand was
                                 firm everywhere but Europe.
Semiconductor-related:           Capital investment demand was weak, other
                                 than for smartphones.
Machine tool-related:            Capital investment demand was firm, mainly in
                                 emerging markets.
Home appliance and electronic    Capital investment in large home appliances
component-related:               and component demand were firm.
                                 Demand was firm due to an increase in
Healthcare equipment-related:    purchasers in connection with economic growth
                                 in emerging markets.

The average exchange rates for the nine months ended December 31, 2012 were
USD 1 = JPY 80.4 and EUR 1 = JPY 103.2 (1.2 yen more and 8.2 yen less than the
same period of the previous fiscal year, respectively).

Consolidated Sales and Income
(Percentages represent changes compared with the same period of the previous
fiscal year).
                       Millions of yen, except per share data and percentages
                        Nine months ended              Nine months ended
                                                   
                        December 31, 2012              December 31, 2011
                                    Change (%)                Change (%)
Net sales               463,681        2.4            452,859     0.3     
Operating income        27,848         (7.6    )       30,137      (18.9   )
Income before income    28,216         7.2            26,323      (26.8   )
taxes
Net income
attributable to        20,684        77.7          11,641     (49.8   )
shareholders
Note: Comprehensive income (loss):
Nine months ended December 31, 2012: JPY 30,165 million (—% change);
Nine months ended December 31, 2011: JPY (2,302 million) (—% change)


Results by Business Segment

IAB (Industrial Automation Business)
Millions of yen, except percentages
                               Nine months ended   Nine months ended
                                                                   Change
                               December 31, 2011   December 31, 2012
Sales to external  Japan      92,204              87,071              -5.6%
customers           Overseas   113,706             105,381             -7.3%
                   Total      205,910             192,452             -6.5%
Segment profit                27,764             20,290             -26.9%
                                                                       

Sales in Japan

Demand was basically unchanged from the same period of the previous fiscal
year in automotive and electronic component-related industries but capital
investment demand was sluggish in semiconductor-related industries.
Consequently, sales weakened. Sales in Japan for the nine months ended
December 31, 2012 decreased compared with the same period of the previous
fiscal year due in part to the absence of the temporary rise in sales from the
impact of the Great East Japan Earthquake and floods in Thailand during the
same period of fiscal 2011.

Overseas Sales

Performance in the Americas was firm, supported by a robust automotive
industry. In Europe, demand remained weak despite a sense that the economic
downturn was bottoming out. In China, although demand was solid, performance
weakened due to the absence of the temporary rise in sales in the same period
of the previous fiscal year. Elsewhere in Asia, despite solid demand in
emerging markets overall, demand weakened due to factors including restrained
capital investment in the semiconductor and other industries in South Korea.
As a result, overseas sales for the nine months ended December 31, 2012
decreased compared with the same period of the previous fiscal year.

Segment Profit

Factors such as reduced sales due to the depreciation of the euro and a
reaction to a temporary increase in sales in the same period of fiscal 2011,
as well as proactive investments, resulted in a decrease in segment profit
compared with the same period of the previous fiscal year.

EMC (Electronic and Mechanical Components Business)
Millions of yen, except percentages
                               Nine months ended   Nine months ended
                                                                   Change
                               December 31, 2011   December 31, 2012
Sales to external  Japan      18,117              19,650              +8.5%
customers           Overseas   43,861              42,296              -3.6%
                   Total      61,978              61,946              -0.1%
Segment profit                5,901              4,496              -23.8%
                                                                       

Sales in Japan

In consumer industries, demand grew in the office equipment field and mobile
industries from the second half, and demand in infrastructure-related fields
was firm. As a result, sales in Japan for the nine months ended December 31,
2012 increased compared with the same period of the previous fiscal year.

Overseas Sales

In the Americas, demand increased in the automotive industry, but decreased in
consumer industries. Demand decreased in Europe due to ongoing economic
weakness. In China and elsewhere in Asia, slack exports due to the weak
economy in Europe and the depreciation of the euro caused sales to remain
essentially unchanged. Consequently, overseas sales for the nine months ended
December 31, 2012 decreased compared with the same period of the previous
fiscal year.

Segment Profit

Factors including the depreciation of the euro and a continuing decrease in
sales within the Omron Group caused segment profit to decrease compared with
the same period of the previous fiscal year.

AEC (Automotive Electronic Components Business)
Millions of yen, except percentages
                               Nine months ended   Nine months ended
                                                                   Change
                               December 31, 2011   December 31, 2012
Sales to external  Japan      20,368              23,290              +14.3%
customers           Overseas   40,870              48,370              +18.4%
                   Total      61,238              71,660              +17.0%
Segment profit                1,847              4,053              +119.4%
                                                                       

Sales in Japan

Automotive demand was robust due to government support measures for the
purchase of eco cars (extension of tax breaks, reintroduction of subsidies)
and strong sales of small cars. Sales in Japan for the nine months ended
December 31, 2012 increased compared with the same period of the previous
fiscal year, partially reflecting the temporary decrease in sales in the same
period of fiscal 2011 due to the Great East Japan Earthquake and floods in
Thailand.

Overseas Sales

Demand for certain components decreased due to the impact of austerity
policies and the deteriorating labor environment in European economies as a
result of financial instability and a sharp drop in sales for Japanese
automobile manufacturers in China. Overall, however, demand was strong among
overseas automobile manufacturers and in emerging markets. As a result,
overseas sales for the nine months ended December 31, 2012 increased compared
with the same period of the previous fiscal year, due in part to the rebound
from the temporary decrease in sales caused by the impact of floods in
Thailand.

Segment Profit

Factors such as increased sales and the absence of the temporary production
adjustments carried out in the same period of fiscal 2011 due to the impact of
the Great East Japan Earthquake and floods in Thailand resulted in an increase
in segment profit compared with the same period of the previous fiscal year.

SSB (Social Systems, Solutions and Service Business)
Millions of yen, except percentages
                              Nine months ended   Nine months ended
                                                                  Change
                              December 31, 2011   December 31, 2012
Sales to external customers   32,985             36,805             +11.6%
Segment profit (loss)        (3,804      )      (2,588      )      –
                                                                      

Public Transportation Systems Business Sales

Passenger revenues of railway companies rebounded compared with the same
period of the previous fiscal year due to factors including the absence of the
impact of the Great East Japan Earthquake, and investment in equipment renewal
was firm. As a result, there was an increase in deliveries of ticket vending
machines, passenger gates and other equipment and related installation work,
and sales for the nine months ended December 31, 2012 increased compared with
the same period of the previous fiscal year. In addition, there is an
increasing need for platform safety and security equipment, such as gates to
prevent passengers from falling onto tracks.

Traffic and Road Management Systems Business and Other Sales

In the traffic and road management systems business, sales for the nine months
ended December 31, 2012 were flat, partially due to the absence of the
temporary reconstruction demand in the same period of the previous fiscal year
resulting from the impact of the Great East Japan Earthquake. In the
environmental solutions business, solar power generation products sold
strongly as a result of a focus on launching new equipment models and
expanding sales channels, backed by the announcement of the introduction of a
system in Japan for purchasing the total amount of renewable energy generated
and the expansion of a tax system to promote environment-related investment.

Segment Profit

Segment loss decreased compared with the same period of the previous fiscal
year because of increased sales.

HCB (Healthcare Business)
Millions of yen, except percentages
                               Nine months ended   Nine months ended
                                                                   Change
                               December 31, 2011   December 31, 2012
Sales to external  Japan      19,878              21,699              +9.2%
customers           Overseas   26,424              30,280              +14.6%
                   Total      46,302              51,979              +12.3%
Segment profit                2,940              3,733              +27.0%
                                                                       

Sales in Japan

Sales of healthcare products for household use were firm, with robust sales of
new products (body composition monitors, digital thermometers for women,
electric toothbrushes, massagers, sleep time monitors, sleep monitors) and new
and preexisting digital blood pressure monitors, HCB's core product. On the
other hand, sales of equipment for use in medical institutions were flat, as
medical institutions maintained a careful stance toward investment. Sales in
Japan for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year, reflecting the temporary decrease in
sales in the same period of fiscal 2011 due to the Great East Japan
Earthquake.

Overseas Sales

Although demand in the markets of Southern and Eastern Europe remained weak
amid the gradual easing of financial instability, demand for healthcare
equipment continued to rise in emerging markets such as Russia, China and
Southeast Asia. As a result, overseas sales for the nine months ended December
31, 2012 were strong overall.

Segment Profit

Despite factors including the depreciation of the euro, segment profit
increased compared with the same period of the previous fiscal year due to the
increase in sales and other factors.

Other
Millions of yen, except percentages
                              Nine months ended   Nine months ended
                                                                  Change
                              December 31, 2011   December 31, 2012
Sales to external customers   39,536             44,174              +11.7 %
Segment profit (loss)        (2,932      )      1,589                   –

Businesses in the "Other" segment are primarily responsible for exploring and
nurturing new business fields and nurturing/reinforcing businesses not handled
by other internal companies.

Environmental Solutions Business Sales

Sales for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year due to factors including increased
demand for solar power condensers (energy-generation business) amid rising
expectations for solar power generation as an alternative source of power.

Electronic Systems & Equipments Division Sales

Although demand for uninterruptible power supplies was firm in response to
concerns about the electrical supply, sales of industrial-use computers and
development and contract manufacturing of electronic devices weakened. As a
result, sales for the nine months ended December 31, 2012 decreased compared
with the same period of the previous fiscal year.

Micro Devices Business Sales

Although demand for MEMS microphone chips and custom integrated circuits for
industrial use rose sharply, sales for the nine months ended December 31, 2012
decreased compared with the same period of the previous fiscal year due to a
rapid drop in demand for contract semiconductor manufacturing.

Backlight Business Sales

Due to the launch of a large-scale project amid a robust smartphone market,
sales for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year.

Segment Profit

Segment profit increased compared with the same period of the previous fiscal
year because of higher sales in the environmental solutions business.

2. Consolidated Financial Position and Cash Flows

Total assets as of December 31, 2012 increased JPY 22,150 million compared
with the end of the previous fiscal year to JPY 559,473 million, due to an
increase in inventories and other factors.

Total liabilities decreased JPY 5,739 million compared with the end of the
previous fiscal year to JPY 209,904 million, largely reflecting a decrease in
notes and accounts payable – trade. Net assets increased JPY 27,889 million
from the end of the previous fiscal year to JPY 349,569 million due to a
change in foreign currency translation adjustments. The shareholders' equity
ratio was 62.2 percent, compared with 59.7 percent at the end of the previous
fiscal year.

Net cash provided by operating activities for the nine months ended December
31, 2012 was JPY 31,932 million (an increase of JPY 18,949 million compared
with the same period of the previous fiscal year) due to collection of
receivables in addition to net income. Net cash used in investing activities
was JPY 20,421 million (an increase in cash used of JPY 2,733 million compared
with the same period of the previous fiscal year) due to capital investment in
production and other facilities. Net cash used in financing activities was JPY
4,319 million (a decrease in cash used of JPY 18,179 million compared with the
same period of the previous fiscal year) due to dividends paid and other
factors.

As a result, the balance of cash and cash equivalents at December 31, 2012 was
JPY 54,726 million, an increase of JPY 9,469 million from the end of the
previous fiscal year.


Consolidated Financial Position
                                Millions of yen - except percentages
                                 As of                 As of
                                                    
                                 December 31, 2012     March 31, 2012
Total assets                     559,473              537,323    
Net assets                       349,569              321,680    
Shareholders' equity             347,900              320,840    
Shareholders' equity ratio (%)  62.2                59.7       
                                                                  

Consolidated Cash Flows
                                  Millions of yen
                       Nine months ended  Nine months ended  Period-on-
                         December 31, 2011   December 31, 2012   period change
Net cash provided by     12,983             31,932             +18,949   
operating activities
Net cash used in         (17,688       )     (20,421     )       -2,733    
investing activities
Net cash used in         (22,498       )     (4,319      )       +18,179   
financing activities
Cash and cash
equivalents at end of   44,699            54,726            +10,027   
period
                                                                           

3. Dividends
                                Year ended       Year ending      Year ending
                                                            March 31,
                                March 31, 2012   March 31, 2013   2013
                                                                  (projected)
           1st quarter         —               —                        
            dividend (JPY)
            2nd quarter         JPY14.00        JPY14.00                 
            dividend (JPY)
Dividends   3rd quarter         —               —                        
per share   dividend (JPY)
            Year-end dividend   JPY14.00                       JPY23.00  
            (JPY)
            Total dividends
           for the year       JPY28.00                     JPY37.00  
            (JPY)
                                                                            

4. Fiscal 2012 Consolidated Performance Forecast

There is no change to the forecast for the fiscal year ending March 31, 2013,
as announced on April 26, 2012. The assumed exchange rates for the fourth
quarter in the performance forecasts for the fiscal year are USD 1 = JPY 89
and EUR 1 = JPY 118.

The performance forecast and other forward-looking statements are based on
information available to the Company at the present time, and on certain
assumptions judged by the Company to be reasonable. Due to a variety of
factors, actual results may differ materially from the forecast.


Projected Results for the Fiscal Year Ending March 31, 2013 (April 1, 2012 –
March 31, 2013)

Millions of yen - except per share data and percentages
                                       
                                       Year ending March 31, 2013  Change (%)
Net sales                               650,000                    4.9    
Operating income                        46,000                     14.6   
Income before income taxes              43,000                     28.2   
Net income attributable to              28,500                     73.9   
shareholders
Net income per share attributable to   129.47                            
shareholders (JPY)
Note: Revisions since the most recently announced results forecast: No


About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the
field of automation. Established in 1933, Omron has more than 36,000 employees
in over 35 countries working to provide products and services to customers in
a variety of fields including industrial automation, electronic components,
social systems, healthcare, and the environment. The company has regional head
offices in Singapore (Asia Pacific), Beijing (Greater China), Amsterdam
(Europe, Africa, and the Middle East), Chicago (the Americas), Gurgaon
(India), and Sao Paulo (Brazil). For more information, visit OMRON's website
at http://www.omron.com/

Contact:

OMRON Corporation
Takayoshi Oue, +81-75-344-7070
Executive Officer, Senior General Manager,
Accounting and Finance Center
 
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