Results Summary (Japan GAAP)

  • Results Summary
  • Quartaly Financial Results
  • Results Summary

    Below is the summary announced on July 25, 2019 of financial results for 1Q FY2019.

    Consolidated Financial Summary

    (¥ billion)

      Three-month period ended June 30, 2018 Three-month period ended June 30, 2019 Change
    Net sales 195.8 176.0 (19.8)
    Operating income 6.4 3.6 (2.7)
    Ordinary income 7.4 3.9 (3.5)
    Net income attributable to owners of parent 5.4 2.5 (2.8)

      In the three-month period ended June 30, 2019, the trade friction between the United States and China seen overseas continued on from the previously fiscal year, having a greater impact on market conditions. This situation led to the ongoing curtailment of investments in the Chinese market, which also began affecting the Asian market as a whole. In Japan, the slowdown in the overseas market resulted in bearish exports of machine tools. Regardless, demand for investments in replacements of aged equipment remained firm.

      In this environment, we launched Reiwa Prosperity 2023, a new five-year medium-term management plan slated to conclude with the fiscal year ending March 31, 2024, the year in which we celebrate the centennial anniversary of Fuji Electric’s founding. Under this plan, the Company will seek to establish a foundation for sustainable growth by implementing growth strategies prescribing the concentration of resources on growth fields, namely the power electronics systems and power semiconductor businesses, and the expansion of overseas businesses. In addition, we will pursue further improvements in profitability through the augmentation of global manufacturing capabilities and work toward the ongoing reinforcement of operating foundations through the Companywide Pro-7 Activities that are aimed at improving work quality.

    Net Sales

      Consolidated net sales in the three-month period ended June 30, 2019, decreased \19.8 billion year on year, to \176.0 billion, due to the rebound from large-scale orders recorded in the previous equivalent period. Another contributor was the fact that the projected decrease demand in the four segments other than the Food and Beverage Distribution and Others segments occurred as forecast. The reduction in demand was a result of the trends toward production adjustment and curtailed capital investment triggered by the trade friction between the United States and China.

    Operating Income, Ordinary Income and Profit Attributable to Owners of Parent

      As a result of the lower sales, consolidated operating income decreased ¥2.7 billion year on year, to ¥3.6 billion; ordinary income was down ¥3.5 billion, to ¥3.9 billion; and net income attributable to owners of parent declined ¥2.8 billion, to ¥2.5 billion.

    Consolidated Financial Results by Segments

    Power Electronics Systems Energy

    Net sales: ¥42.4 billion (down 5% year on year)
    Operating income: ¥1.2 billion (down ¥0.1 billion year on year)

      In the Power Electronics Systems Energy, net sales and operating income were down year on year as a result of the rebound from large-scale projects undertaken in the previous equivalent period in the energy management business and reduced demand in the ED&C components business.

    In the energy management business, net sales decreased year on year primarily as a result of the rebound from large-scale projects undertaken overseas during the previous equivalent period. However, operating results improved year on year due to the benefits of cost reduction efforts.

    In the power supply and facility systems business, net sales and operating results improved year on year, despite the absence of a large-scale order recorded in the previous equivalent period in Japan, as a result of a rise in large-scale overseas orders in switchgear and controlgear operations.

    In the ED&C components business, net sales and operating results worsened year on year due to reduced demand from machine tool and other equipment manufacturers in Japan and overseas.

    Power Electronics Systems Industry

    Net sales: ¥53.5 billion (down 10% year on year)
    Operating loss: ¥2.7 billion (up ¥1.4 billion year on year)

      In the Power Electronics Systems Industry segment, net sales decreased and operating loss increased. Factors behind this outcome included lower demand in the Japanese and Chinese markets in the automation business and the absence of large-scale orders recorded in the previous equivalent period in the social solutions business.

    In the automation systems business, net sales and operating results worsened year on year following reduced demand for low-voltage inverters and factory automation components in Japan and overseas.

    In the social solutions business, net sales and operating results worsened year on year due to the absence of large-scale orders for electrical equipment for railcars recorded in the previous equivalent period.

    In the equipment construction business, net sales and operating results improved year on year due to strong demand for plant and air-conditioning equipment construction.

    In the IT solutions business, net sales and operating results worsened year on year because of the rebound from large-scale orders recorded in the previous equivalent period.

    Electronic Devices

    Net sales: ¥32.9 billion (down 7% year on year)
    Operating income: ¥3.3 billion (down ¥1.5 billion year on year)

    In the electronic devices business, net sales and operating income worsened year on year as the benefits of higher demand for automotive power semiconductors were outweighed by the impacts of lower demand in the industrial field stemming from slowdown in the Japanese and Chinese markets.

    Food and Beverage Distribution

    Net sales: ¥28.7 billion (up 1% year on year)
    Operating income: ¥2.2 billion (up ¥0.8 billion year on year)

    In the vending machine business, net sales and operating results worsened year on year due to reduced demand in the Japanese and Chinese markets.

    In the store distribution business, net sales and operating results improved year on year thanks to an increase in demand for store equipment for convenience stores.

    Power Generation

    Net sales: ¥14.6 billion (down 40% year on year)
    Operating income: ¥0.6 billion (down ¥0.4 billion year on year)

    In the power generation business, net sales and operating results worsened year on year as a result of the rebound from large-scale thermal power, hydro power, and solar power generation system projects undertaken in the previous equivalent period.

    Others

    Net sales: ¥15.0 billion (up 1% year on year)
    Operating income: ¥0.5 billion (unchanged year on year)

    Forecasts for the Fiscal Year Ending March 31, 2019

    In light of the business result trends seen in the three-month period ended June 30, 2019, Fuji Electric has chosen to revise the consolidated forecast for business results for the six-month period ending September 30, 2019, that was announced together with financial results for the fiscal year ended March 31, 2019, on April 25, 2019.

    The forecast assumes exchange rates of US$1 = ¥105, €1 = ¥123, and RMB1 = ¥16 for the period from July 1, 2019, onward.

    (Consolidated Forecasts for the Six Months Ending September 30, 2019) (¥ billion)
      Previous announcementRevised announcement Change
    Net sales 411.5 405.5 (6.0)
    Operating income 15.6 12.6 (3.0)
    Ordinary income 14.8 11.8 (3.0)
    Net income attributable to owners of parent 8.6 6.5 (2.1)
    (Reference: Consolidated Forecasts for the Six Months Ending September 30, 2019 by Segment) (¥ billion)
      Net sales Operating income (loss)
    Previous
    announcement
    Revised
    announcement
    Change Previous
    announcement
    Revised
    announcement
    Change
    Power Electronics Systems Energy 95.2 94.2 (1.0) 4.7 3.7 (1.0)
    Power Electronics Systems Industry 140.3 138.3 (2.0) 0.8 0.0 (0.8)
    Electronic Devices 71.7 68.7 (3.0) 8.3 7.1 (1.2)
    Food and Beverage Distribution 55.1 55.1 0.0 2.9 2.9 0.0
    Power Generation 45.1 45.1 0.0 0.9 0.9 0.0
    Others 31.4 31.4 0.0 1.0 1.0 0.0
    Elimination and Corporate (27.2) (27.2) 0.0 (3.0) (3.0) 0.0
    Total 411.5 405.5 (6.0) 15.6 12.6 (3.0)

    There has been no change to the consolidated forecast for business results for the fiscal year ending March 31, 2020, that was announced together with financial results for the fiscal year ended March 31, 2019, on April 25, 2019.

    (Consolidated Forecasts for the Fiscal Year Ending March 31, 2020) (¥ billion)
     
    Previous
    announcement
    Revised
    announcement
    Change
    Net sales 930.0 930.0 0.0
    Operating income 62.0 62.0 0.0
    Ordinary income 63.6 63.6 0.0
    Net income attributable to owners of parent 40.4 40.4 0.0
    (Reference: Consolidated Forecasts for the Fiscal Year Ending March 31, 2020, by Segment) (¥ billion)
      Net sales Operating income (loss)
    Previous
    announcement
    Revised
    announcement
    Change Previous
    announcement
    Revised
    announcement
    Change
    Power Electronics Systems Energy 220.0 220.0 0.0 16.8 16.8 0.0
    Power Electronics Systems Industry 332.0 332.0 0.0 21.9 21.9 0.0
    Electronic Devices 150.3 150.3 0.0 17.5 17.5 0.0
    Food and Beverage Distribution 113.6 113.6 0.0 6.6 6.6 0.0
    Power Generation 116.0 116.0 0.0 4.3 4.3 0.0
    Others 60.0 60.0 0.0 2.2 2.2 0.0
    Elimination and Corporate (61.9) (61.9) 0.0 (7.4) (7.4) 0.0
    Total 930.0 930.0 0.0 62.0 62.0 0.0

    Note: Effective April 1, 2019, the Power Electronics Systems?Energy Solutions and Power Electronics Systems?Industry Solutions reporting segments were changed to form the Power Electronics Systems Energy and Power Electronics Systems Industry segments. In addition, the Power and New Energy segment was renamed the Power Generation segment. Year-on-year comparisons have been calculated using figures for the three-month period ended June 30, 2018, that have been restated to reflect these changes.

    *Please refer to Financial Results for further details.

  • Quartaly Financial Results

    Consolidated summary

    (Millions of yen)

      2020/3
      1Q 2Q 1 Half 3Q 4Q 2 Half Annual
    Net sales 176,010
    Operating income 3,642
    Ordinary income 3,852
    Income before income taxes 3,628
    Profit attributable to owners of parent 2,528

    Net Sales by Segment

    (Millions of yen)

      2020/3
      1Q 2Q 1 Half 3Q 4Q 2 Half Annual
    Power Electronics Systems
    Energy
    42,414
    Power Electronics Systems
    Industry
    53,491
    Electronic Devices 32,938
    Food and Beverage Distribution 28,738
    Power Generation 14,641
    Others 15,005
    Subtotal 187,230
    Elimination -11,219
    Total 176,010

    Operating Income (Loss) by Segment

    (Millions of yen)

      2020/3
      1Q 2Q 1 Half 3Q 4Q 2 Half Annual
    Power Electronics Systems
    Energy
    1,183
    Power Electronics Systems
    Industry
    -2,747
    Electronic Devices 3,296
    Food and Beverage Distribution 2,242
    Power Generation 550
    Others 538
    Subtotal 5,064
    Elimination/corporate -1,422
    Total -3,642
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