Release: January 31, 2017
|Company Name:||NGK INSULATORS, LTD.|
|Stock Exchange Listings:||Tokyo and Nagoya|
|Representative:||Taku Oshima (Mr.)|
|Contact:||Hideaki Shindo (Mr.)|
|Finance & Accounting Department|
NGK INSULATORS, LTD. ("NGK") hereby announces that it has revised the consolidated financial results forecasts for the full year ending March 31, 2017 announced on October 28, 2016 in light of recent performance trends.
Forecasts of consolidated financial results for the full year ending March 31, 2017(April 1, 2016 to March 31, 2017)
|Net sales||Operating income||Ordinary income||Profit attributable
to owners of parent
|Profit per share|
|Previous forecast (A)||Millions of yen||Millions of yen||Millions of yen||Millions of yen||Yen|
|Revised forecast (B)||400,000||63,000||64,000||35,000||108.44|
|Change (B - A)||15,000||9,000||10,000||2,000||-|
Results from previous year
(the year ended March 31, 2016)
Net sales are expected to exceed previous forecasts in the Ceramics Business Segment due to factors including a weak yen and an increase in demand for automotive ceramics, mainly due to factors including an increase in small passenger car sales in response to tax reduction measures and an increase in truck sales in response to strict controls on overloaded vehicles in China. Furthermore, in the Electronics Business Segment, demand for ceramic components for semiconductor manufacturing equipment grew against the backdrop of active capital investment on 3D-NAND flash memories and semiconductor foundries by semiconductor manufacturers. As a result, company-wide net sales are also expected to exceed previous forecasts.
In terms of earnings, operating income and ordinary income are both expected to exceed previous forecasts, influenced by increased net sales and a weak yen.
On the other hand, profit attributable to owners of parent, which takes into account extraordinary income (loss) and tax burdens, is expected to record a moderate increase from the previous forecast. With respect to transactions between a Polish subsidiary from the fiscal year ended March 31, 2007 through the fiscal year ended March 31, 2010, NGK received a correction based on transfer pricing taxation in March 2012, and made a payment of approximately ¥6.2 billion in tax penalties including local taxes, while filing a complaint. Subsequently, NGK filed an action for revocation of an administrative disposition related to the above transactions against correction in the full amount to the Tokyo District Court on December 20, 2016 after requested the Nagoya National Tax Tribunal to carry out an administrative review. NGK, however, believes that it could still take a considerable time for the judgement on the claim to be made. Meanwhile, in view of the limitation on the duration of rights of taxation (deadline for correction), there is a risk of receiving a correction on transactions arising in the fiscal years starting from April 1, 2010 (fiscal year ended March 31, 2011) in whole or in part, as a difference of view remains with the tax authorities. Because it is difficult to reasonably estimate the fiscal years and amounts subject to this correction, and other potential factors with the risks above combined such as extraordinary income (loss) are considered, the present target profit for the year ending March 31, 2017 is as forecast.
The exchange rates from January onward are assumed to be ¥115/USD and ¥120/EUR. (Average exchange rates for the year: ¥110/USD and ¥119/EUR)
Financial results forecasts are based on information available at the time of the release, but 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.
Consolidated Results - Segment Information
(After Elimination of Inter-Segment Transactions)
(Billions of yen)
ended March 31, 2016
ending March 31, 2017
|Previous Forecast||Revised Forecast|
|Consolidated Op. Income||80.9||54.0||63.0|
|Op. Income Ratio||19%||14%||16%|
|Power Business||Consolidated Sales||83.5||56.0||53.0|
|Consolidated Op. Income||2.6||(6.5)||(6.5)|
|Op. Income Ratio||3%||-||-|
|Ceramic Products Business||Consolidated Sales||250.9||235.0||245.0|
|Consolidated Op. Income||70.7||59.5||65.0|
|Op. Income Ratio||28%||25%||27%|
|Electronics Business||Consolidated Sales||101.4||94.0||102.0|
|Consolidated Op. Income||7.7||1.0||4.5|
|Op. Income Ratio||8%||1%||4%|