FORM 6-K
U.S.SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Commission File Number: 1-15238
Supplement For the month of July 2007.
Total number of pages: 20
The exhibit index is located on page 1
NIDEC CORPORATION
(Translation of registrant’s name into English)
338 KuzeTonoshiro-Cho,
Minami-Ku,Kyoto 601-8205 Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F X Form 40-F __
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes __ No X
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____
Information furnished on this form:
EXHIBITS
Exhibit Number
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 27, 2007 | ||||
NIDEC CORPORATION | ||||
By: /S/ Hiroshi Toriba | ||||
Senior General Manager, Investor Relations |
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NEWS RELEASE
NIDEC CORPORATION
New York Stock Exchange symbol: NJ
Stock exchange code (Tokyo, Osaka): 6594
FOR IMMEDIATE RELEASE
Contact: | |
Hiroshi Toriba | |
Senior General Manager | |
Investor Relations | |
+81-75-935-6140 | |
HIROSHI_TORIBA@notes.nidec.co.jp |
QUARTERLY FINANCIAL STATEMENTS (U.S. GAAP)
(U.S. GAAP) RESULTS FOR THE THREE MONTHS ENDED
JUNE 30, 2007 (Unaudited)
(FROM APRIL 1, 2007 TO JUNE 30, 2007)
CONSOLIDATED
Released on July 27, 2007
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NIDEC CORPORATION
Stock Listings: Tokyo Stock Exchange, Osaka Securities Exchange and the New York Stock Exchange
Head Office:Kyoto, Japan
1. Selected Consolidated Financial Performance
(1) Consolidated Results of Operations
Japanese yen (Millions except per share amounts) | |||
For the three months ended June 30, | Year ended March 31, | ||
2007 | 2006 | 2007 | |
Net sales | ¥172,174 | ¥145,819 | ¥629,667 |
Percent change from the previous period | 18.1% | 19.0% | 17.3% |
Operating income | 15,106 | 15,034 | 64,009 |
Percent change from the previous period | 0.5% | 56.6% | 19.8% |
Income before income taxes and minority interests | 16,831 | 14,028 | 65,595 |
Percent change from the previous period | 20.0% | 17.3% | 1.9% |
Net income | 11,116 | 8,849 | 39,932 |
Percent change from the previous period | 25.6% | 0.6% | (2.5)% |
Net income per share -basic | ¥76.75 | ¥61.19 | ¥276.03 |
Net income per share -diluted | ¥74.63 | ¥59.45 | ¥268.25 |
(2) Consolidated Financial Position
Japanese yen (Millions except per share amounts) | |||
As of June 30, | As of March 31, | ||
2007 | 2006 | 2007 | |
Total assets | ¥707,894 | ¥563,170 | ¥662,623 |
Shareholders’ equity | 320,145 | 266,810 | 305,016 |
Shareholders’ equity to total assets | 45.2% | 47.4% | 46.0% |
Shareholders’ equity per share | ¥2,208.78 | ¥1,844.78 | ¥2,107.40 |
(3) Consolidated Results of Cash Flows
Japanese yen (Millions ) | |||
As of June 30, | As of March 31, | ||
2007 | 2006 | 2007 | |
Net cash provided by operating activities | ¥11,492 | ¥16,196 | ¥64,723 |
Net cash used in investing activities | (13,106) | (13,002) | (78,935) |
Net cash provided by (used in) financing activities | 6,261 | (9,816) | 8,943 |
Cash and cash equivalents at end of period | ¥96,376 | ¥84,571 | ¥88,784 |
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2. Forecast of Consolidated Financial Performance (For the year ending March 31, 2008)
Japanese yen (Millions except per share amounts) | ||
For the six months ending September 30, 2007 | For the year ending March 31, 2008 | |
Net sales | ¥340,000 | ¥720,000 |
Operating income | 32,000 | 75,000 |
Income before income taxes and minority interests | 32,000 | 75,000 |
Net income | 20,000 | 45,000 |
Net income per share | ¥138.18 | ¥310.91 |
Financial forecasts for the year ending March 31, 2008 remain unchanged from the previous ones released on April 25, 2007.
3. Others
(1) Change in number of material subsidiaries during the three months ended June 30, 2007
(due to change in the scope of consolidation) : No
(2) Adoption of simplified accounting method : Yes
(3) Changes in accounting method in late consolidated fiscal year : No
(4) Scope of consolidation and application of equity method
Number of consolidated subsidiaries: | 126 |
Number of affiliates accounted for by the equity method: | 4 |
(5) Change in scope of consolidation and application of equity method
a) Changes from March 31, 2007
Number of subsidiaries newly included in consolidation: | 9 |
Number of subsidiaries excluded from consolidation: | - |
Number of affiliates newly accounted for by the equity method: | - |
Number of affiliates excluded from accounted for by the equity method: | - |
b) Changes from June 30, 2006
Number of subsidiaries newly included in consolidation: | 33 |
Number of subsidiaries excluded from consolidation: | 2 |
Number of affiliates newly accounted for by the equity method: | - |
Number of affiliates excluded from accounted for by the equity method: | 1 |
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1. Qualitative Information Regarding Consolidated Business Results
In the first quarter ended June 30, 2007 (“the quarter” below), the business environment, partially due to seasonal factors, was affected by a slump in the hard disk drive (HDD) market. However, Nidec made efforts in all business segments to meet the demands of the market in terms of technology and cost, and implemented management reforms at subsidiaries newly brought within the scope of consolidation through acquisitions. As a result, the company achieved growth in both revenues and earnings during the quarter, in comparison with the first quarter of the previous fiscal year. In part due to the increase in the number of consolidated subsidiaries, net sales rose approximately 18% in comparison to the same period of the previous fiscal year, and operating income grew 0.5% despite a decline in the machinery business. The depreciating yen allowed the company to post foreign currency transaction gains, which contributed to double-digit growth in both income before provision for income taxes and consolidated net income.
Net sales showed year-on-year growth of approximately ¥26,400 million, or 18.1%, to ¥172,174 million in the quarter. Operating income increased approximately ¥70 million, or 0.5%, to ¥15,106 million. In the first quarter of the previous fiscal year, the machinery business sector generated operating income of ¥4,059 million, but in the quarter under review this declined by approximately ¥1,500 million, to ¥2,570 million. Exclusive of the machinery business, other business segments achieved approximately 14% growth in operating income, and this offset the decrease in the machinery business and resulted in a small increase in total operating income. The company posted foreign currency transaction gains of approximately ¥2,400 million (in contrast to foreign currency transaction losses of ¥900 million in the first quarter of the previous fiscal year), which contributed to an increase in income before provision for income taxes of approximately ¥2,800 million, or 20.0%, to ¥16,831 million. Net income grew by approximately ¥2,270 million, or 25.6%, to ¥11,116 million.
Net sales by business segment were as follows.
Net sales for the quarter in the small precision motor business showed substantial year-on-year growth, rising by approximately ¥13,300 million, or 18.4%, to ¥85,351 million. The effect of newly consolidated subsidiaries accounted for approximately 8 percentage points of this growth, but the growth would have been a healthy 11% without it. Sales of spindle motors for hard disk drives were solid despite the slump in demand for HDDs, with both volume and value of sales growing by approximately 9% and 14% year-on-year, respectively. The average sales price in dollar-terms was held to a decline of approximately 1%. In yen terms, the average sales price increased by 5%, resulting from the yen’s depreciation against the dollar. The growth rate of 2.5-inch hard drive sales exceeded that of 3.5-inch hard drives in the quarter, but was lower than last fiscal year’s growth rate of over 50%. Net sales of other DC motors were up approximately 23% in comparison to the first quarter of the previous fiscal year. Of this, revenues from sales of brushless DC motors by Nidec Corporation and its direct-line subsidiaries grew approximately 10%, while the volume of sales rose 22%. This was due to a decline in the average sales price of motors for optical discs; although sales volume continued to show striking growth, the heightened unbundled sales ratio of these motors was a factor in decreasing the average sales price. In addition, there was a decline in sales of high-priced products for office equipment. Net sales of brushless DC fans increased by approximately 12% compared to the previous period, due mainly to the sales from a newly consolidated subsidiary in this period. Excluding the sales from a newly consolidated subsidiary, net sales of brushless DC fans decreased by approximately 2%, due mainly to decreased sales of cooling fans for CPU.
The mid-size motors business more than doubled its net sales, rising approximately ¥13,500 million, or 116%, to ¥25,213 million, of which, about ¥10,000 million was a direct result of the acquisition of Nidec Motors & Actuators from Valeo S.A. However, aside from this effect, almost 30% of the increase was due to higher sales of motors for automobiles and motors for home appliances and industrial use.
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Net sales in the machinery business fell by approximately ¥5,000 million, or 22.5%, to ¥17,179 million, year-on-year. This was the result of a decline in shipments of robots for handling LCD panel substrates by Nidec Sankyo Corporation. On the other hand, Nidec-Read Corporation, Nidec-Kyori Corporation, and other group companies maintained their strong performance, with Nidec-Shimpo Corporation recording a 13% increase in sales of power transmission equipment. In addition, there was a recovery in sales of semiconductor production equipment by Nidec Tosok Corporation, which had decreased in the second half of last fiscal year.
The electronic and optical components business posted net sales of ¥38,092 million, an increase of approximately ¥4,400 million, or 13%, in comparison to the same quarter of the previous fiscal year. This segment benefited from an approximately 16.6% increase in sales of camera shutters and plastic lens units by Nidec Copal, including products destined for use in mobile telephones. Further, Nidec Copal Electronics Corporation’s sales of electronic components, including sales of Fujisoku Corporation, which was acquired by Nidec Copal Electronics in October 2006, rose approximately 36%, as the segment overall registered an increase in sales. Sales of Nidec Sankyo’s optical pick-up units fell approximately 40% year-on-year. This offset an sales increase of home appliance units and sales increase from Nidec Pigeon, which is Nidec Sankyo’s consolidated subsidiary.
Net sales in “other” businesses increased by approximately ¥100 million, or 2%, to ¥6,339 million. Sales of pivot assemblies for HDD components manufactured and marketed by Nidec Singapore Pte. Ltd. took a downturn. However, sales of auto parts by this business sector’s core firm, Nidec Tosok, increased approximately 4% and offset the sales decline of pivot assemblies.
Operating income for the quarter increased approximately ¥70 million, or 0.5%, to ¥15,106 million. Operating income in “small precision motors”, “mid-size motors” and “electronic and optical components” segments increased compared to previous period. On the other hand, the income in “Machinery” and “Others” segment decreased compared to the previous period, especially the decrease in “Machinery” was large. As a result, the consolidated operating income ratio declined by approximately 1.5%, resulting mainly from continued efforts to reinvigorate of newly acquired businesses.
The small precision motor business achieved growth in operating income of approximately ¥1,000 million, or 11%, to ¥10,125 million. The segment’s operating income ratio was 11.9%, down 0.8 percentage points from the first quarter of the previous fiscal year, primarily because the contribution of newly consolidated subsidiaries was limited only to net sales. When this effect is excluded, the operating income ratio was almost at the 13% level, as same period of the previous year.
The mid-size motors business achieved profitability in the last fiscal year, and, building on that foundation, recorded operating income of ¥541 million for the quarter, a year-on-year improvement of approximately ¥300 million. Reasons for this included growth in sales of motors for home appliances, particularly during the period of peak demand in connection with air conditioner production, and the profitability of automotive power-steering motors.
Operating income from sales of machinery declined ¥1,500 million year-on-year, to ¥2,570 million. In the first quarter of last fiscal year, the performance of Nidec Sankyo’s robot business was strong, and income was near record levels for a single quarter. In the quarter under review, however, a decline in sales in the robot business resulted in lower income. Nidec-Read and Nidec-Kyori maintained performance at last fiscal year’s levels, and Nidec-Shimpo turned in 30% growth in income.
7
The electronic and optical components business recorded operating income of ¥2,746 million, an increase of ¥800 million in comparison to the same quarter of the previous fiscal year. Profitability in “electronic and optical component” for Nidec Sankyo and Nicec Copal improved due to the improvement of profitability in Nidec Copal’s new products, such as shutter and lens unit, and cost reduction in Nidec Sankyo’s optical pickup units. As with Nidec Copal Electronics’ electronic components, profitability was favorable in comparison with the second half of last fiscal year, but failed to rise above performance in the first quarter of that year. In comparison with the fourth quarter of last fiscal year, operating income in this business segment increased by almost 2.3 times. The operating income ratio increased by 4 percentage points.
Operating income for “other” businesses declined by approximately ¥400 million to ¥297 million. Falling sales of pivot assemblies resulted in a decrease in operating income in that area.
2. Qualitative information on consolidated financial conditions
As for the changes in the balance sheet, total assets increased by approximately ¥45,300 million from the end of the previous fiscal year as of March 31, 2007, mainly due to the consolidation of Japan Servo Co., Ltd. during this quarter. Cash and cash equivalents, trade accounts receivable, inventory, tangible assets approximately increased by ¥7,600 million, ¥15,600 million, ¥7,100 million and ¥11,900 million, respectively.
For liabilities, short-term borrowings and trade notes and accounts payable increased by approximately ¥18,700 million and ¥6,000 million.
For shareholders’ equity, retained earnings and foreign currency translation adjustments increased by approximately ¥6,500 million and ¥7,000 million, respectively. Minority interest in consolidated subsidiaries increased by approximately ¥4,400 million, due mainly to the consolidation of Japan Servo Co., Ltd.
Shareholders’ equity was approximately ¥320,100 million and shareholders’ equity to total assets was 45.2%.
Overview of Cash Flow
The balance of cash and cash equivalents at the end of the quarter was ¥96,376 million, an increase of ¥7,592 million from the end of the previous year as of March 31, 2007.
Cash flow provided by operating activities was ¥11,492 million. Net income, depreciation expenses in total increased by approximately ¥19,700 million from the previous year as of March 31, 2007. Main expenditure is approximately ¥6,800 million, due mainly to an increase of notes and accounts receivable, an increase of inventory and a decrease of notes and accounts payable.
Cash flow used in investing activities was ¥13,106 million, out of which payments for capital investment were approximately ¥10,100 million, acquisitions of consolidated subsidiaries were ¥2,600 million and investment in subsidiaries were approximately ¥1,600 million.
8
Cash flow provided by financing activities was ¥6,261 million, resulting from an increase of short-term borrowings of approximately ¥10,800 million which offset cash outflow resulting from repayment of long-term debt was approximately ¥700 million and dividends paid was approximately ¥3,600 million.
3. Qualitative Information Regarding Forecasts of Consolidated Performance
Forecasts of consolidated performance for the fiscal year are fundamentally unchanged from the interim and full-year forecasts of performance released on April 25, 2007.
(1) Performance in the first quarter was close to forecasts. Net sales in the first quarter were approximately 50.6% of the value forecast for the first half, and operating income was 47.2% of the forecast for the half. Nidec’s core small precision motor business, which is focused on spindle motors for hard disk drives, will enter its period of peak demand in the second quarter. We therefore believe that the performance of this business is on track. The combined net sales of “other” businesses declined slightly (approximately 2%) in comparison to the fourth quarter of the preceding fiscal year, but operating income rose ¥900 million, or 18%, improving in line with forecasts. Accordingly, there are no changes to the interim forecasts.
(2) A forecast of performance for the fiscal year was released on April 25, together with the announcement of results for the previous term, and there are no significant changes in forecasts for the overall business environment and individual business segments. The performance of the HDD market from April through June was somewhat weak. In the face of falling prices, HDD manufacturers took measures to hold the line on profits, and business inquiries have been steady since July, as forecast. A research firm surveyed the market and predicts annual growth of around 10%. The mid-size motors business will continue the healthy performance seen in the first quarter. The recovery of performance in the electronic and optical components business will continue, as sales expand steadily. A recovery in orders is anticipated for the second half in the machinery business. Despite these favorable indications, at the present time performance is held to forecast levels. N idec is nonetheless pursuing strong efforts to develop new sources of demand through new technologies and new products. In view of the foregoing, there are no changes to forecasts of performance for the fiscal year.
4. Others
(1) Change in number of material subsidiaries during the fiscal year
(due to change in the scope of consolidation) : Not applicable
(2) Adoption of simplified accounting method : Yes
(Corporate income tax reporting standards)
Corporate income tax and other taxes are calculated using simplified methods, including the use of expected annual tax rate based on the legal income tax rate.
(3) Changes in accounting method in late consolidated fiscal year : Not applicable
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Disclaimer Regarding Forward-Looking Statements This press release contains forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Nidec and its group companies (the Nidec Group). These forward-looking statements are based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to them. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “plan” or similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of the Nidec Group's financial condition, or state other forward-look ing information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. We cannot promise that our expectations expressed in these forward-looking statements will turn out to be correct. Our actual results could be materially different from and worse than our expectations as a result of certain factors, including, but not limited to (i) the Nidec Group's ability to design, develop, mass produce and win acceptance of their products, (ii) general economic conditions in the computer, information technology and related product markets, particularly levels of consumer spending, (iii) exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar and other currencies in which we make significant sales or in which the Nidec Group's assets and liabilities are denominated, (iv) the Nidec Group's ability to acquire and successfully integrate companies with complementary technologies and product lines, and (v) adverse changes in laws, regulations or economic policies in any of the countries where the Nidec Group has manufacturing operations, especially China. |
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Consolidated balance sheets- Assets
Yen in millions | |||||||
June 30, 2007 | March 31, 2007 | Inc or Dec | June 30, 2006 | ||||
Current assets: | |||||||
Cash and cash equivalents | ¥96,376 | ¥88,784 | ¥7,592 | ¥84,571 | |||
Trade notes receivable | 18,215 | 17,318 | 897 | 16,684 | |||
Trade accounts receivable | 162,601 | 147,014 | 15,587 | 127,049 | |||
Inventories: | |||||||
Finished goods | 30,455 | 26,960 | 3,495 | 26,894 | |||
Raw materials | 19,687 | 17,324 | 2,363 | 14,383 | |||
Work in process | 17,717 | 16,405 | 1,312 | 15,732 | |||
Project in progress | 1,307 | 1,212 | 95 | 1,257 | |||
Supplies and other | 2,291 | 2,407 | (116) | 3,317 | |||
Other current assets | 20,268 | 21,238 | (970) | 15,917 | |||
Total | 368,917 | 52.1% | 338,662 | 51.1% | 30,255 | 305,804 | 54.3% |
Investments and loan receivable: | |||||||
Marketable securities and other securities investments | 24,085 | 21,805 | 2,280 | 19,990 | |||
Investments in and advances to affiliates | 2,208 | 2,194 | 14 | 3,120 | |||
Total | 26,293 | 3.7 | 23,999 | 3.6 | 2,294 | 23,110 | 4.1 |
Property, plant and equipment: | |||||||
Land | 39,832 | 38,289 | 1,543 | 35,821 | |||
Buildings | 114,736 | 103,325 | 11,411 | 89,243 | |||
Machinery and equipment | 288,144 | 258,970 | 29,174 | 208,329 | |||
Construction in progress | 10,899 | 13,717 | (2,818) | 12,053 | |||
Sub-total | 453,611 | 64.1 | 414,301 | 62.5 | 39,310 | 345,446 | 61.3 |
Less - Accumulated depreciation | (234,506) | (33.1) | (207,059) | (31.2) | (27,447) | (166,967) | (29.6) |
Total | 219,105 | 31.0 | 207,242 | 31.3 | 11,863 | 178,479 | 31.7 |
Goodwill | 69,392 | 9.8 | 67,780 | 10.2 | 1,612 | 45,720 | 8.1 |
Other non-current assets | 24,187 | 3.4 | 24,940 | 3.8 | (753) | 10,057 | 1.8 |
Total assets | ¥707,894 | 100.0% | ¥662,623 | 100.0% | ¥45,271 | ¥563,170 | 100.0% |
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Consolidated balance sheets- Liabilities and shareholders’ equity
Yen in millions | |||||||
June 30, 2007 | March 31, 2007 | Inc or Dec | June 30, 2006 | ||||
Current liabilities: | |||||||
Short-term borrowings | ¥97,578 | ¥78,848 | ¥18,730 | ¥39,342 | |||
Current portion of long-term debt | 3,456 | 3,216 | 240 | 2,407 | |||
Trade notes and accounts payable | 123,654 | 117,665 | 5,989 | 111,987 | |||
Other current liabilities | 32,338 | 35,640 | (3,302) | 26,725 | |||
Total | 257,026 | 36.3% | 235,369 | 35.6% | 21,657 | 180,461 | 32.1% |
Long-term liabilities: | |||||||
Long-term debt | 31,609 | 31,560 | 49 | 32,193 | |||
Accrued pension and severance costs | 15,605 | 13,013 | 2,592 | 9,632 | |||
Other long-term liabilities | 12,690 | 11,212 | 1,478 | 10,750 | |||
Total | 59,904 | 8.5 | 55,785 | 8.4 | 4,119 | 52,575 | 9.3 |
Total liabilities | 316,930 | 44.8 | 291,154 | 44.0 | 25,776 | 233,036 | 41.4 |
Minority interest in consolidated subsidiaries | 70,819 | 10.0 | 66,453 | 10.0 | 4,366 | 63,324 | 11.2 |
Shareholders’ equity: | |||||||
Common stock | 66,248 | 9.4 | 65,868 | 9.9 | 380 | 65,669 | 11.7 |
Additional paid-in capital | 68,859 | 9.7 | 68,469 | 10.3 | 390 | 68,264 | 12.1 |
Retained earnings | 166,991 | 23.6 | 160,480 | 24.2 | 6,511 | 132,291 | 23.5 |
Accumulated other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 13,854 | 6,874 | 6,980 | (2,138) | |||
Unrealized gains on securities | 4,207 | 3,324 | 883 | 3,082 | |||
Minimum pension liability adjustment | - | - | - | (115) | |||
Pension liability adjustments | 252 | 263 | (11) | - | |||
Total comprehensive income (loss) | 18,313 | 2.5 | 10,461 | 1.6 | 7,852 | 829 | 0.1 |
Treasury stock, at cost | (266) | (0.0) | (262) | (0.0) | (4) | (243) | (0.0) |
Total shareholders’ equity | 320,145 | 45.2 | 305,016 | 46.0 | 15,129 | 266,810 | 47.4 |
Total liabilities and shareholders’ equity | ¥707,894 | 100.0% | ¥662,623 | 100.0% | ¥45,271 | ¥563,170 | 100.0% |
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Consolidated statements of income
Yen in millions | ||||||||
Three months ended June 30, | Increase or | For the year ended | ||||||
2007 | 2006 | Decrease | March 31, 2007 | |||||
Net sales | ¥172,174 | 100.0% | ¥145,819 | 100.0% | ¥26,355 | 18.1% | ¥629,667 | 100.0% |
Cost of products sold | 136,769 | 79.4 | 111,956 | 76.8 | 24,813 | 22.2 | 486,627 | 77.3 |
Selling, general and administrative expenses | 12,711 | 7.4 | 11,216 | 7.7 | 1,495 | 13.3 | 46,276 | 7.3 |
Research and development expenses | 7,588 | 4.4 | 7,613 | 5.2 | (25) | (0.3) | 32,755 | 5.2 |
Operation expenses | 157,068 | 91.2 | 130,785 | 89.7 | 26,283 | 20.1 | 565,658 | 89.8 |
Operating income | 15,106 | 8.8 | 15,034 | 10.3 | 72 | 0.5 | 64,009 | 10.2 |
Other income (expense): | ||||||||
Interest and dividend income | 797 | 562 | 235 | 2,565 | ||||
Interest expenses | (706) | (486) | (220) | (2,022) | ||||
Foreign exchange gain (loss), net | 2,370 | (944) | 3,314 | 1,757 | ||||
Gain (loss) from marketable securities, net | 27 | 208 | (181) | 943 | ||||
Other, net | (763) | (346) | (417) | (1,657) | ||||
Total | 1,725 | 1.0 | (1,006) | (0.7) | 2,731 | - | 1,586 | 0.2 |
Income before provision for income taxes | 16,831 | 9.8 | 14,028 | 9.6 | 2,803 | 20.0 | 65,595 | 10.4 |
Provision for income taxes | (4,427) | (2.6) | (3,128) | (2.1) | (1,299) | 41.5 | (17,460) | (2.8) |
Income before minority interest and equity in earnings of affiliated companies | 12,404 | 7.2 | 10,900 | 7.5 | 1,504 | 13.8 | 48,135 | 7.6 |
Minority interest in income (loss) of consolidated subsidiaries | 1,263 | 0.7 | 2,053 | 1.4 | (790) | (38.5) | 8,130 | 1.3 |
Equity in net (income) loss of affiliated companies | 25 | 0.0 | (2) | (0.0) | 27 | - | 73 | 0.0 |
Net income | ¥11,116 | 6.5% | ¥8,849 | 6.1% | ¥2,267 | 25.6% | ¥39,932 | 6.3% |
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Consolidated statements of shareholders’ equity and comprehensive income (loss)
For the three months ended June 30, 2007
Yen in millions | |||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock, at cost | |||||||||
Shares | Amount | Total | |||||||||||
Balance at March 31, 2007 | 144,780,492 | ¥65,868 | ¥68,469 | ¥160,480 | ¥10,461 | ¥(262) | ¥305,016 | ||||||
The cumulative effect by the FIN 48 application * | (987) | (987) | |||||||||||
Comprehensive income: | |||||||||||||
Net income | 11,116 | 11,116 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | 6,980 | 6,980 | |||||||||||
Unrealized losses on securities, net of reclassification adjustment | 883 | 883 | |||||||||||
Pension liability adjustments | (11) | (11) | |||||||||||
Total comprehensive income | 18,968 | ||||||||||||
Dividends paid | (3,618) | (3,618) | |||||||||||
Exercise of stock option | 207,000 | 380 | 390 | 770 | |||||||||
Purchase of treasury stock | (4) | (4) | |||||||||||
Balance at June 30, 2007 | 144,987,492 | ¥66,248 | ¥68,859 | ¥166,991 | ¥18,313 | ¥(266) | ¥320,145 |
*: Resulting from the adoption of FIN No.48 “Accounting for Uncertainty in Income Taxes” in this period, our retained earnings as of March 31, 2007 decreased by ¥987 million.
For the three months ended June 30, 2006
Yen in millions | |||||||||||||
Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock, at cost | |||||||||
Shares | Amount | Total | |||||||||||
Balance at March 31, 2006 | 144,661,292 | ¥65,649 | ¥68,240 | ¥126,334 | ¥3,673 | ¥(237) | ¥263,659 | ||||||
Comprehensive income: | |||||||||||||
Net income | 8,849 | 8,849 | |||||||||||
Other comprehensive income (loss): | |||||||||||||
Foreign currency translation adjustments | (2,063) | (2,063) | |||||||||||
Unrealized losses on securities, net of reclassification adjustment | (781) | (781) | |||||||||||
Minimum pension liability adjustment | - | - | |||||||||||
Total comprehensive income | 6,005 | ||||||||||||
Dividends paid | (2,892) | (2,892) | |||||||||||
Exercise of stock option | 11,000 | 20 | 24 | 44 | |||||||||
Purchase of treasury stock | (6) | (6) | |||||||||||
Balance at June 30, 2006 | 144,672,292 | ¥65,669 | ¥68,264 | ¥132,291 | ¥829 | ¥(243) | ¥266,810 |
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Consolidated Statement of Cash Flows
Japanese yen (Millions) | |||
For the period ended June 30, | For the period ended June 30, | Year ended March 31, | |
2007 | 2006 | 2007 | |
Cash flows from operating activities: | |||
Net income | ¥11,116 | ¥8,849 | ¥39,932 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 8,590 | 6,363 | 30,687 |
Loss (gain) on marketable securities, net | (27) | (208) | (943) |
Loss (gain) on sales, disposal or impairment of property, plant and equipment | (16) | 213 | 1,737 |
Minority interest in income of consolidated subsidiaries | 1,263 | 2,053 | 8,130 |
Equity in net income (loss) of affiliated companies | 25 | (2) | 73 |
Foreign currency adjustments | (653) | 578 | 368 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in notes and accounts receivable | (2,317) | (799) | (10,414) |
Decrease (increase) in inventories | (1,319) | (2,335) | 1,805 |
Increase (decrease) in notes and accounts payable | (3,125) | 4,314 | (4,223) |
Increase (decrease) in accrued income taxes | (4,470) | (4,087) | 2,491 |
Other | 2,425 | 1,257 | (4,920) |
Net cash provided by operating activities | 11,492 | 16,196 | 64,723 |
Cash flows from investing activities: | |||
Additions to property, plant and equipment | (10,051) | (10,514) | (39,144) |
Proceeds from sales of property, plant and equipment | 118 | 88 | 1,089 |
Purchases of marketable securities | (2) | (0) | (4) |
Proceeds from sales of marketable securities | 934 | 378 | 1,071 |
Proceeds from sales of investments in affiliated companies | - | - | 774 |
Proceeds from sales of investment in subsidiaries | - | - | 135 |
Payments for additional investments in subsidiaries | (1,640) | (2,026) | (16,588) |
Acquisitions of consolidated subsidiaries, net of cash acquired | (2,583) | - | (25,322) |
Investments in and advances to affiliates | - | 11 | - |
Other | 118 | (939) | (946) |
Net cash used in investing activities | (13,106) | (13,002) | (78,935) |
Cash flows from financing activities: | |||
Increase (decrease) in short-term borrowings | 10,750 | (3,697) | 22,649 |
Repayments of long-term debt | (708) | (2,351) | (6,696) |
Proceeds from issuance of new shares | 761 | 40 | 438 |
Dividends paid | (3,618) | (2,892) | (5,786) |
Other | (924) | (916) | (1,662) |
Net cash provided by (used in) financing activities | 6,261 | (9,816) | 8,943 |
Effect of exchange rate changes on cash and cash equivalents | 2,945 | (886) | 1,974 |
Net increase (decrease) in cash and cash equivalents | 7,592 | (7,508) | (3,295) |
Cash and cash equivalents at beginning of period | 88,784 | 92,079 | 92,079 |
Cash and cash equivalents at end of the first quarter | ¥96,376 | ¥84,571 | ¥88,784 |
15
Segment information
1) Operating Segment Information
Yen in millions | ||||||
Three months ended June 30, 2007 | Three months ended June 30, 2006 | Increase or decrease | ||||
Net sales: | ||||||
Nidec Corporation | ¥45,119 | 16.2% | ¥42,961 | 17.0% | ¥2,158 | 5.0% |
Nidec Electronics (Thailand) Co., Ltd. | 24,556 | 8.8 | 18,974 | 7.5 | 5,582 | 29.4 |
Nidec (Zhejiang) Corporation | 5,442 | 2.0 | 4,713 | 1.9 | 729 | 15.5 |
Nidec (Dalian) Limited | 11,801 | 4.2 | 12,057 | 4.8 | (256) | (2.1) |
Nidec Singapore Pte. Ltd. | 10,201 | 3.7 | 14,183 | 5.6 | (3,982) | (28.1) |
Nidec (H.K.) Co., Ltd. | 9,503 | 3.4 | 8,224 | 3.3 | 1,279 | 15.6 |
Nidec Philippines Corporation | 11,926 | 4.3 | 10,680 | 4.2 | 1,246 | 11.7 |
Nidec Sankyo Corporation | 16,495 | 5.9 | 21,899 | 8.7 | (5,404) | (24.7) |
Nidec Copal Corporation | 16,920 | 6.1 | 16,815 | 6.7 | 105 | 0.6 |
Nidec Tosok Corporation | 5,882 | 2.1 | 5,586 | 2.2 | 296 | 5.3 |
Nidec Copal Electronics Corporation | 5,885 | 2.1 | 5,828 | 2.3 | 57 | 1.0 |
Nidec Shibaura Corporation | 5,808 | 2.1 | 4,415 | 1.7 | 1,393 | 31.6 |
Nidec-Shimpo Corporation | 3,266 | 1.2 | 3,132 | 1.2 | 134 | 4.3 |
Nidec Motors & Actuators | 9,844 | 3.5 | - | - | 9,844 | - |
Nidec Nissin Corporation. | 2,713 | 1.0 | 2,782 | 1.1 | (69) | (2.5) |
All others | 92,348 | 33.4 | 80,343 | 31.8 | 12,005 | 14.9 |
Sub-total | 277,709 | 100.0% | 252,592 | 100.0% | 25,117 | 9.9 |
Adjustments and eliminations | (105,535) | - | (106,773) | - | 1,238 | - |
Consolidated total | ¥172,174 | - | ¥145,819 | - | ¥26,355 | 18.1% |
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Yen in millions | ||||||
Three months ended June 30, 2007 | Three months ended June 30, 2006 | Increase or decrease | ||||
Operating income: | ||||||
Nidec Corporation | ¥2,841 | 19.0% | ¥2,488 | 16.0% | ¥353 | 14.2% |
Nidec Electronics (Thailand) Co., Ltd. | 1,961 | 13.1 | 2,599 | 16.7 | (638) | (24.5) |
Nidec (Zhejiang) Corporation | 286 | 1.9 | 6 | 0.0 | 280 | - |
Nidec (Dalian) Limited | 1,278 | 8.5 | 1,012 | 6.5 | 266 | 26.3 |
Nidec Singapore Pte. Ltd. | 254 | 1.7 | 414 | 2.7 | (160) | (38.6) |
Nidec (H.K.) Co., Ltd. | 112 | 0.7 | 82 | 0.5 | 30 | 36.6 |
Nidec Philippines Corporation | 1,101 | 7.4 | 693 | 4.5 | 408 | 58.9 |
Nidec Sankyo Corporation | 949 | 6.3 | 2,429 | 15.6 | (1,480) | (60.9) |
Nidec Copal Corporation | 724 | 4.8 | 667 | 4.3 | 57 | 8.5 |
Nidec Tosok Corporation | 188 | 1.3 | 348 | 2.2 | (160) | (46.0) |
Nidec Copal Electronics Corporation | 708 | 4.7 | 812 | 5.2 | (104) | (12.8) |
Nidec Shibaura Corporation | 62 | 0.4 | 66 | 0.4 | (4) | (6.1) |
Nidec-Shimpo Corporation | 252 | 1.7 | 261 | 1.7 | (9) | (3.4) |
Nidec Motors & Actuators | 84 | 0.6 | - | - | 84 | - |
Nidec Nissin Corporation. | 67 | 0.4 | 123 | 0.8 | (56) | (45.5) |
All others | 4,106 | 27.5 | 3,553 | 22.9 | 553 | 15.6 |
Sub-total | 14,973 | 100.0% | 15,553 | 100.0% | (580) | (3.7) |
Adjustments and eliminations | 133 | - | (519) | - | 652 | - |
Consolidated total | ¥15,106 | - | ¥15,034 | - | ¥72 | 0.5% |
__________________
Note: 1. The operating segments are the segments of Nidec for which separate financial information is available and for which operating profit or loss amounts are evaluated regularly by executive management in deciding how to allocate resources and in assessing performance.
2. Segmental profit or loss is determined using the accounting principles in the segment’s country of domicile.
3. In December 2006, we acquired all of the voting rights of the Motors & Actuators business of Valeo S.A., France. As a result, Nidec Motors & Actuators was identified as reportable operating segments from this three months ended June 30, 2007.
4. “Nidec Motors & Actuators”, described in above chart, is comprised of Nidec Motors & Actuators (Germany) GmbH and its subsidiaries of Europe and North America which primarily produce and sell in-car motors.
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SUPPORT DOCUMENTATION (Three months ended June 30, 2007)
(1) Business Segment Information
Japanese yen (Millions) | ||||||||||||||||
Three months ended June 30, 2007 | ||||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and Optical components | Other | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥85,351 | ¥25,213 | ¥17,179 | ¥38,092 | ¥6,339 | ¥172,174 | ¥- | ¥172,174 | ||||||||
Intersegment | 357 | 36 | 2,934 | 101 | 1,010 | 4,438 | (4,438) | - | ||||||||
Total | 85,708 | 25,249 | 20,113 | 38,193 | 7,349 | 176,612 | (4,438) | 172,174 | ||||||||
Operating expenses | 75,583 | 24,708 | 17,543 | 35,447 | 7,052 | 160,333 | (3,265) | 157,068 | ||||||||
Operating income | ¥10,125 | ¥541 | ¥2,570 | ¥2,746 | ¥297 | ¥16,279 | ¥(1,173) | ¥15,106 |
Japanese yen (Millions) | ||||||||||||||||
Three months ended June 30, 2006 | ||||||||||||||||
Small precision motors | Mid-size motors | Machinery | Electronic and Optical components | Other | Total | Eliminations/ Corporate | Consolidated | |||||||||
Net sales: | ||||||||||||||||
Customers | ¥72,101 | ¥11,672 | ¥22,166 | ¥33,679 | ¥6,201 | ¥145,819 | ¥- | ¥145,819 | ||||||||
Intersegment | 36 | 35 | 3,010 | 150 | 1,082 | 4,313 | (4,313) | - | ||||||||
Total | 72,137 | 11,707 | 25,176 | 33,829 | 7,283 | 150,132 | (4,313) | 145,819 | ||||||||
Operating expenses | 63,007 | 11,461 | 21,117 | 31,899 | 6,594 | 134,078 | (3,293) | 130,785 | ||||||||
Operating income | ¥9,130 | ¥246 | ¥4,059 | ¥1,930 | ¥689 | ¥16,054 | ¥(1,020) | ¥15,034 |
________________
Notes:
1. Segments are classified based on similarities in product type, product attributes, and production and sales methods.
2. Major products of each business segment:
(1) Small precision motors: Small precision DC motors (including spindle motors for HDDs), Small precision fans, brush motors, vibration motors
(2) Mid-size motors: Motors for home appliances, automobiles and industrial use
(3) Machinery: High-speed press machines, semiconductor production equipment, precision equipment, FA equipment
(4) Electronic and Optical components: Electronic components, Optical components
(5) Other: Automobile components, pivot assemblies, other components, service etc
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(2) Sales by Geographic Segment
Yen in millions | ||||||
Three months ended June 30, 2007 | Three months ended June 30, 2006 | Increase or decrease | ||||
Japan | ¥90,799 | 52.7% | ¥82,226 | 56.4% | ¥8,573 | 10.4% |
America | 5,478 | 3.2 | 1,943 | 1.3 | 3,535 | 181.9 |
Singapore | 12,227 | 7.1 | 16,568 | 11.4 | (4,341) | (26.2) |
Thailand | 22,139 | 12.9 | 16,097 | 11.0 | 6,042 | 37.5 |
Philippines | 2,750 | 1.6 | 2,742 | 1.9 | 8 | 0.3 |
China | 10,600 | 6.2 | 8,661 | 5.9 | 1,939 | 22.4 |
Other | 28,181 | 16.3 | 17,582 | 12.1 | 10,599 | 60.3 |
Total | ¥172,174 | 100.0% | ¥145,819 | 100.0% | ¥26,355 | 18.1% |
________________
Note: The sales are classified by geographic areas of the seller and the figures exclude intra-segment transactions.
(3) Sales by Region
Yen in millions | ||||||
Three months ended June 30, 2007 | Three months ended June 30, 2006 | Increase or decrease | ||||
North America | ¥8,272 | 4.8% | ¥4,128 | 2.8% | ¥4,144 | 100.4% |
Asia | 98,474 | 57.2 | 90,929 | 62.4 | 7,545 | 8.3 |
Other | 13,356 | 7.8 | 5,509 | 3.8 | 7,847 | 142.4 |
Overseas sales total | 120,102 | 69.8 | 100,566 | 69.0 | 19,536 | 19.4 |
Japan | 52,072 | 30.2 | 45,253 | 31.0 | 6,819 | 15.1 |
Consolidated total | ¥172,174 | 100.0% | ¥145,819 | 100.0% | ¥26,355 | 18.1% |
________________
Note: Sales by region are classified by geographic areas of the buyer and the figures exclude intra-segment transactions.
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BUSINESS COMBINATIONS
For the three months ended June 30, 2007
The corporate name of which NIDEC acquired the entity:
1. Japan Servo Co., Ltd. (“JSRV”)
The business of JSRV:
Productions and sales of small precision motors and the motor applied products.
The purpose of the acquisition:
We intended to achieve an optimal blend of the technological expertise and production scale that the two companies have developed to date, particularly in the field of small precision motors.
The acquisition date:
April 27, 2007
Legal form of the business combination:
Stock acquisition by cash payment
The voting share which NIDEC acquired:
51.7%
The purchase price, the purchase shares and goodwill
The purchase price for the acquisition: ¥4,800 million (The direct cost ¥4,733 million, Indirect cost ¥67 million)
The shares which NIDEC acquired: 18,204,466 shares.(included 1,466 shares, what NIDEC hold before the tender offer. The acquisition cost of the 1,466 shares was ¥0 million.)
Goodwill ¥790 million.
We have adopted SFAS No. 142, “Goodwill and Other Intangible Assets”. Goodwill represents the excess of purchase price and related costs over the fair value of net assets of acquired businesses. Under SFAS No.142, goodwill acquired in business combinations is not amortized but tested annually for impairment. If, between annual tests, an event, which would reduce the fair value below its carrying amount, occurs, we would recognize impairment.
20