November 10, 2005
|
Name of company: |
KAGA ELECTRONICS CO., LTD |
|
Stock code: |
8154 |
|
Stock exchange listing: |
Tokyo, Stock Exchange, First Section |
|
Headquarters: |
2-2-9, Hongo, Bunkyo-ku, Tokyo |
|
Representative |
|
|
Title: |
Founder & CEO |
|
Name: |
Isao Tsukamoto |
|
Contact person |
|
|
Title: |
Senior Managing Director, Finance & Administration Headquarters |
|
Name: |
Waichiro Shimoyama |
|
Tel: |
+81-(0)3-4455-3111 |
Review of First-Half Financial Results Compared with
[I] Outline of Results versus forecasts
The Company's operating results in the first half ended September 2005 (from April 1, 2005 to
September 30, 2005) compare with their forecasts issued on August 10, 2005 along with first-quarter
results, and on August 15, 2005 as tabulated below.
1. Non-consolidated operating results (April 1, 2005 – September 30, 2005)
|
|
Unit |
Net sales |
Ordinary income |
Net income |
|
Previous forecast (A) |
Million yen |
79,000 |
2,290 |
1,760 |
|
Actual result (B) |
Million yen |
87,367 |
2,927 |
2,106 |
|
(B) – (A) |
Million yen |
8,367 |
637 |
346 |
|
Percentage difference |
% |
10.6 |
27.8 |
19.7 |
|
Prior-period result |
Million yen |
83,834 |
2,387 |
1,457 |
2. Consolidated operating results (April 1,2005- September 30, 2005)
|
|
Unit |
Net sales |
Ordinary income |
Net income |
|
Previous forecast (A) |
Million yen |
115,500 |
4,000 |
2,750 |
|
Actual result (B) |
Million yen |
122,385 |
4,947 |
3,340 |
|
(B) – (A) |
Million yen |
6,885 |
947 |
590 |
|
Percentage difference |
% |
6.0 |
23.7 |
21.5 |
|
Prior-period result |
Million yen |
112,481 |
3,748 |
2,404 |
[II] Breakdown of Results versus Projections
1. Non-consolidated operating results
During the first half period, sector-wide inventory level adjustments ran their course and demand
headed for recovery in the field of digital home electronics and related products. In this environment,
the Company kept close track of market needs and sought to expand sales to established customers and
develop new customers. The Company posted net sales of 87,367 million yen (10.6% higher than last
projected). In addition to a slower than initially anticipated decline in sales of semiconductor products,
the key factors included greater demand for applications in PC related products and portable music
players, and stronger sales of components to supply manufacturers of office equipment.
Reflecting the increase in net sales, the Company posted ordinary income of 2,927 million yen and net
income of 2,106 million yen (27.8% and 19.7% higher than last projected, respectively).
2. Consolidated operating results
During the first half period, the Company stepped up its marketing drive that brought the combined
strength of Group companies in Japan and overseas to bear on expanding sales to customers, as well as
enhancing technological capabilities and augmenting the production function. As was the case at the
non-consolidated level, the Company benefited from stronger sales of PC related applications and
components to supply for manufacturers of office equipment, and posted consolidated sales of 122,385
million yen (6.0% higher than last projected).
Reflecting the increase in sales and an improved gross profit to net sales ratio, the Company posted
consolidated ordinary income of 4,947 million yen and consolidated net income of 3,340 million yen
(23.7% and 21.5% higher than last projected, respectively).
[III] Forecast of Full-Year operating Results
1. Non-consolidated operating results (April 1, 2005 – March 31, 2006)
|
|
Unit |
Net sales |
Ordinary income |
Net income |
|
Previous forecast (A) |
Million yen |
163,000 |
5,170 |
3,270 |
|
Current updated projection (B) |
Million yen |
163,000 |
5,170 |
3,270 |
|
Difference (B)-(A) |
Million yen |
- |
- |
- |
|
Percentage difference |
% |
- |
- |
- |
|
Prior-year result |
Million yen |
186,878 |
4,980 |
2,985 |
2. Consolidated operating results (April 1,2005- March 31,2006)
|
|
Unit |
Net sales |
Ordinary income |
Net income |
|
Previous forecast (A) |
Million yen |
259,000 |
9,470 |
5,960 |
|
Current updated projection (B) |
Million yen |
259,000 |
9,470 |
5,960 |
|
Difference (B)-(A) |
Million yen |
- |
- |
- |
|
Percentage difference |
% |
- |
- |
- |
|
Prior-year result |
Million yen |
250,244 |
8,644 |
4,731 |