Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation: Favorable First Half Earnings with Recovery to Profits, FY3/14 Estimates Call for Continued Improvement in Profitability NOTE TO EDITORS: The following is an investment opinion issued by Investment Bridge Business Wire TOKYO -- January 21, 2014 Investment Bridge, one of Japan’s leading IR services companies, has issued a “Bridge Report” on Ferrotec Corporation (JASDAQ:6890) reviewing its first half earnings results and full year FY3/14 earnings estimates. Report Highlights *Ferrotec’s first half FY3/14 sales remained in line with the previous first half, but the promotion of business restructuring plans and other efforts contributed to a large margin of decline in expenses and allowed operating income to recover from a loss in the previous term to an operating income of JPY159 million. *Ferrotec’s earnings estimates for the full FY3/14 call for sales to rise by 9.3% year-over-year and an operating income to recover a step further to JPY1.0 billion on the back of improvement in operating conditions in all of its business segments. *The most recently issued Bridge Report calls attention to Ferrotec’s potential to enter a new growth phase in fiscal year March 2015 and to realize recovery in operating income to JPY1.5 to JPY2.0 billion on the back of recoveries in capital investments in the semiconductor and the photovoltaic industries. 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. Sales rose by 0.9% year-over-year to JPY20.2 billion during the first half of FY3/14 on the back of favorable sales of the electronic device business segment due to demand for thermoelectric modules used in automobile seat heating and other consumer applications and favorable sales of the equipment related applications to smartphone memory and logic manufacturers. The disappearance of valuation losses arising from the implementation of lowest cost accounting, progress in the business restructuring plans, and declines in doubtful account reserves allowed operating income to improve from the loss of JPY2.153 billion in the previous first half to a profit of JPY159 million in the current first half. During the second half, a recovery in semiconductor related investments is expected to allow equipment related business sales to rise strongly. Moreover, strong demand for thermoelectric modules from automobile seat automated heating applications is expected to lead to favorable sales of electronic device business sales. Consequently, sales are expected to rise by 9.3% year-over-year to JPY42.0 billion, and operating income is expected to recover to JPY1.0 billion in the current term from the loss of JPY3.6 billion recorded in FY3/13. The most recently issued Bridge Report highlights the potential for Ferrotec’s earnings to bottom in the current term and to begin a period of renewed growth from fiscal year March 2015, with a potential recovery in operating income to JPY1.5 to JPY2.0 billion in the future. To view the full report, please go to the website at the URL listed below. http://www.bridge-salon.jp/report_bridge/archives/eng/6890/20140120.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: Favorable First Half Earnings with
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