NGK INSULATORS, LTD.


Global menu

  1. Home>
  2. NGK News>
  3. 2012>
  4. September 28, 2012

Main contents.

Release: September 28, 2012

Company Name: NGK INSULATORS, LTD.
Listing Code: 5333
Stock Exchange Listings: Tokyo and Nagoya
Representative: Taro Kato (Mr.)
President
Contact: Susumu Sakabe (Mr.)
Director & Senior Vice President
(TEL: +81-52-872-7230)

Notice Regarding Loss from Write-Down of Securities
and Revisions to Business Forecasts

The market value of investment stock classified as "available-for-sale securities," declined significantly against book values, rendering it necessary to apply impairment accounting and state a loss from the write-down of securities for the second quarter of fiscal 2012, ending March 31, 2013.

Due to this factor and in light of recent trends in business results, business forecasts for fiscal 2012 announced on May 11, 2012 have been revised as follows.

1. Total projected loss on write-down of securities for the second quarter of fiscal 2012

Consolidated:
Total loss on write-down of securities for the second quarter of fiscal 2012: ¥3,045 million
Note: The separation method is used for quarterly securities valuations.

2. Revisions to business forecasts

(1) Forecasts of consolidated financial results for the second quarter of fiscal 2012 (April 1, 2012 to September 30, 2012)

  Net sales Operating income Ordinary income Net income Net income per share
Previous forecast (A) Millions of yen Millions of yen Millions of yen Millions of yen Yen
124,000 11,000 10,000 9,000 27.56
Revised forecast (B) 124,000 11,000 8,500 1,000 3.06
Change (B - A) - - (1,500) (8,000) -
Percentage-change (%) - - (15.0) (88.9) -
For Reference: Results from previous year
(second quarter of fiscal 2011)
121,978 15,501 14,447 10,713 32.81
Note: Results from the previous year reflect changes in accounting policies that have been retroactively applied.

(2) Forecasts of consolidated financial results for fiscal 2012 (April 1, 2012 to March 31, 2013)

  Net sales Operating income Ordinary income Net income
(loss)
Net income
(loss)
per share
Previous forecast (A) Millions of yen Millions of yen Millions of yen Millions of yen Yen
270,000 28,000 30,000 24,000 73.50
Revised forecast (B) 255,000 23,000 24,000 16,000 49.00
Change (B - A) (15,000) (5,000) (6,000) (8,000) -
Percentage-change (%) (5.6) (17.9) (20.0) (33.3) -
For Reference: Results from previous year
(fiscal 2011)
247,307 25,967 28,583 (35,657) (109.21)
Note: Results from the previous year reflect changes in accounting policies that have been retroactively applied.
These forecasts of consolidated financial results incorporate extraordinary losses from the abovementioned loss on write-down of securities.

3. Reasons for revisions

(1) Forecasts of second quarter financial results

On a consolidated basis, forecasts for net sales and operating income are unchanged from previous forecasts. By business, in the Electronics Business, ceramic component for semiconductor manufacturing equipment and ceramic microactuators for inkjet printer heads saw lower demand mainly due to stagnant market conditions, but automotive products in the Ceramic Products Business are performing well.

Ordinary income is projected to fall short of the previous forecast due to the occurrence of foreign exchange loss and to increased equity in loss of unconsolidated subsidiaries and associated companies. In addition to stating an extraordinary loss associated with the abovementioned loss on the write-down of securities, the tax expenses are expected to increase due to lower deferred tax assets associated with a decline in projected income for the second half. Net income therefore is expected to be significantly lower than previously forecasted.

(2) Forecasts of full-year financial results

The previous forecast for net sales was premised on market conditions in the Electronics Business recovering in the second half of the fiscal year, but stagnant conditions are expected to linger, so sales are projected to decline. In the Power Business as well, there is a likelihood that projects will be delayed until the next fiscal year. As a result, on a consolidated basis, net sales are forecast to be significantly lower than forecast previously.

In terms of profits, operating income and ordinary income are projected to be lower than previous forecasts due to the impact of lower revenues from the Electronics Business and Power Business. In addition, net income is forecast to come in substantially lower than the previous forecast due to extraordinary losses associated with a loss on the write-down of securities stated in the second quarter.

Business forecasts are calculated based on information available at the time, but they are subject to many uncertainties. Actual results therefore may vary from forecasts due to changes in business conditions and other factors. Your understanding is appreciated.

PDF Download

PDFNotice Regarding Loss from Write-Down of Securities and Revisions to Business Forecasts (PDF:18KB)


NGK News menu

NGK News


Page top

NGK INSULATORS, LTD.