Hitachi Maxell: Fiscal 3Q09 Financial Results

Hitachi Maxell Ltd. announced its consolidated financial results for the third quarter ended December 31, 2009 (3Q09).

In the third quarter under review, from April 1 to December 31, 2009, despite gradual recovery from the worldwide recession, which began from the second half of the previous fiscal year, the global economy remained lackluster due to low consumption and investment. The Maxell Group faced tough business conditions because the depressed economic climate worldwide caused structural changes in markets and falling product prices.

Amid those conditions – despite signs of recovery in optical components – all segments recorded decreases in revenues. As a result, net sales declined 23.7%, to ¥107,337 million. Although measures targeting rigorous reduction of administrative expenses and comprehensive cost reduction to make management leaner and stronger were successful, lower shipment volume, falling product prices, and the effect of foreign currency exchange rates led to decreases in operating income and ordinary income. Consequently, operating income resulted in ¥678 million, down ¥2,308 million, and ordinary income amounted to ¥761 million, down ¥1,993 million from the previous fiscal year. Net loss was ¥747 million, an improvement of ¥16,824 million compared with the previous fiscal year. The average foreign currency exchange rates in the third quarter were US$1=¥93 and €1=¥133.

               
Information Storage Media

* Computer tapes, Broadcasting video tapes, Blu-ray discs, DVDs, CDs, MO disks, floppy disks, MiniDiscs, audio and video tapes
** For the year ending March 31, 2010

Information Storage Media represents 39% of total sales in 3Q10. Others activities are battery and material-device-electronic appliance. In computer tapes, there was a significant decrease in revenue because the effect of falling product prices and foreign exchange rates counteracted increased shipment volume of high-storage-capacity LTO Ultrium 4 data cartridges. Optical discs had a substantial decline in revenue due to lower shipment volume. In audio tapes and video tapes, revenue decreased significantly because of market contraction. As a result, the Information Storage Media segment recorded a 32.2% decrease in net sales, to ¥41,084 million. Due to markedly worse results in computer tapes, operating income amounted to ¥534 million, down ¥2,582 million from the previous fiscal year.

Material-Device-Electronic Appliance
In materials and devices, revenue was down substantially, reflecting lower shipment volume of pickup lenses for optical disc drives. Revenue from electronic appliances declined. As a result, the Material-Device-Electronic Appliance segment recorded a 10.3% decrease in net sales, to ¥34,795 million. However, thanks to the effect of restructuring operations for functional materials and optical components, this segment posted operating income of ¥1,150 million, an improvement of ¥1,868 million from the previous fiscal year.