Results Summary (Japan GAAP)

  • Results Summary
  • Quartaly Financial Results
  • Results Summary

    Below is the summary announced on Oct 31, 2019 of financial results for 1H FY2019.

    Consolidated Financial Summary

    (¥ billion)

      Six-month period ended September 30, 2018Six-month period ended September 30, 2019 Change
    Net sales 419.4 406.7 (12.8)
    Operating income 18.5 11.1 (7.4)
    Ordinary income 19.4 10.9 (8.6)
    Net income attributable to owners of parent 12.5 6.0 (6.6)

      In the six-month period ended September 30, 2019, Fuji Electric 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 is 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.

      Overseas, the operating environment for the six-month period ended September 30, 2019, saw an increased trend toward the curtailing of investments centered on China and other parts of Asia as a result of the prolongation of the trade friction between the United States and China that continued on from the previously fiscal year. 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.

    Net Sales

      Consolidated net sales in the six-month period ended September 30, 2019, decreased ¥12.8 billion year on year, to ¥406.7 billion. Factors behind this decrease included the rebound from large-scale projects recorded in the previous equivalent period as well as the fact that demand was down in the four segments other than the Power Electronics Systems Energy 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 and the impacts of foreign exchange influences, which offset the benefits of cost reduction efforts, consolidated operating income decreased ¥7.4 billion year on year, to ¥11.1 billion; ordinary income was down ¥8.6 billion, to ¥10.9 billion; and net income attributable to owners of parent declined ¥6.6 billion, to ¥6.0 billion.

    Consolidated Financial Results by Segments

    Power Electronics Systems Energy

    Net sales: ¥98.1 billion (up 5% year on year)
    Operating income: ¥3.6 billion (down ¥1.3 billion year on year)

      In the Power Electronics Systems Energy segment, net sales were up year on year following strong demand in the power supply and facility systems business, but operating income was down as a result of lower 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.

    Power Electronics Systems Industry

    Net sales: ¥138.7 billion (down 2% year on year)
    Operating loss: ¥0.7 billion (compared with operating income of ¥1.9 billion in the previous equivalent period)

      In the Power Electronics Systems Industry segment, net sales decreased and an operating loss was posted, despite operating income being recorded in the previous equivalent period. Factors behind this outcome included lower demand in the automation systems business and the absence of large-scale projects 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 projects for electrical equipment for railcars recorded in the previous equivalent period.

    In the equipment construction business, net sales decreased year on year following declines in electrical and air-conditioning equipment construction projects. However, operating results improved year on year due to the benefits of cost reduction efforts.

    In the IT solutions business, net sales and operating results improved year on year because of a rise in large-scale orders in the private sector.

    Electronic Devices

    Net sales: ¥65.8 billion (down 8% year on year)
    Operating income: ¥6.0 billion (down ¥2.6 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 for electrified vehicles (xEVs) were outweighed by the impacts of lower demand in the industrial field centered on the Japanese and Chinese markets as well as the impacts of foreign exchange influences.

    Food and Beverage Distribution

    Net sales: ¥54.7 billion (down 3% year on year)
    Operating income: ¥2.9 billion (up ¥0.3 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: ¥41.8 billion (down 15% year on year)
    Operating income: ¥0.8 billion (down ¥1.1 billion year on year)

    In the power generation business, net sales and operating results worsened year on year as the decline in large-scale solar power generation system projects outweighed the increase in large-scale thermal and geothermal power generation system projects.

    Others

    Net sales: ¥30.7 billion (up 1% year on year)
    Operating income: ¥1.2 billion (unchanged year on year)

    Forecasts for the Fiscal Year Ending March 31, 2019

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

    The forecast assumes exchange rates of US$1 = ¥105, €1 = ¥123, and RMB1 = ¥15 for the period from October 1, 2019, onward.

    (Consolidated Forecasts for the Fiscal Year Ending March 31, 2020) (¥ billion)
      Previous announcementRevised announcement Change
    Net sales 930.0 915.0 (15.0)
    Operating income 62.0 50.0 (12.0)
    Ordinary income 63.6 51.6 (12.0)
    Net income attributable to owners of parent 40.4 33.0 (7.4)
    (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 220.0 217.0 (3.0) 16.8 13.8 (3.0)
    Power Electronics Systems Industry 332.0 337.0 5.0 21.9 19.4 (2.5)
    Electronic Devices 150.3 136.0 (14.3) 17.5 11.6 (5.9)
    Food and Beverage Distribution 113.6 112.0 (1.6) 6.6 5.8 (0.8)
    Power Generation 116.0 116.0 0.0 4.3 4.3 0.0
    Others 60.0 60.0 0.0 2.2 2.4 0.2
    Elimination and Corporate (61.9) (63.0) (1.1) (7.4) (7.3) 0.1
    Total 930.0 915.0 (15.0) 62.0 50.0 (12.0)

    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 six-month period ended September 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 176,010 230,651 406,661
    Operating income 3,642 7,473 11,116
    Ordinary income 3,852 7,008 10,861
    Income before income taxes 3,628 6,497 10,126
    Profit attributable to owners of parent 2,528 3,449 5,978

    Net Sales by Segment

    (Millions of yen)

      2020/3
      1Q 2Q 1 Half 3Q 4Q 2 Half Annual
    Power Electronics Systems
    Energy
    42,414 55,689 98,103
    Power Electronics Systems
    Industry
    53,491 85,212 138,703
    Electronic Devices 32,938 32,850 65,788
    Food and Beverage Distribution 28,738 25,948 54,687
    Power Generation 14,641 27,192 41,834
    Others 15,005 15,712 30,718
    Subtotal 187,230 242,605 429,835
    Elimination -11,219 -11,954 -23,173
    Total 176,010 230,651 406,661

    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 2,447 3,630
    Power Electronics Systems
    Industry
    -2,747 2,082 -664
    Electronic Devices 3,296 2,692 5,989
    Food and Beverage Distribution 2,242 677 2,920
    Power Generation 550 248 799
    Others 538 612 1,150
    Subtotal 5,064 8,761 13,826
    Elimination/corporate -1,422 -1,288 -2,710
    Total 3,642 7,473 11,116
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