TIDMTOS
RNS Number : 8637Y
Toshiba Corporation
30 January 2014
This is the translation of an announcement submitted to the
Tokyo Stock Exchange.
FOR IMMEDIATE RELEASE
January 30, 2014
Toshiba Announces Consolidated Results
for the First Nine Months and Third Quarter
of Fiscal Year Ending March 2014
TOKYO -- Toshiba Corporation (TOKYO: 6502) today announced its
consolidated results for the first nine months (April-December) and
the third quarter (October-December) of fiscal year (FY) 2013,
ending March 31, 2014. All comparisons in the following are based
on the same period a year earlier, unless otherwise stated.
Overview of Consolidated Results for the First Nine Months of
FY2013
(April-December, 2013)
(Yen in billions)
First nine months Change from
of FY2013 first nine months
of FY2012
---------------------------------- ------------------ -------------------
Net Sales 4,588.8 +545.8
---------------------------------- ------------------ -------------------
Operating income (loss) 153.3 +55.0
---------------------------------- ------------------ -------------------
Income (Loss) before
income taxes and noncontrolling
interests 91.0 0.0
---------------------------------- ------------------ -------------------
Net income (loss) attributable
to shareholders of
the Company ([1]) 38.7 -15.8
---------------------------------- ------------------ -------------------
([1]) "The Company" refers to Toshiba Corporation.
The overall recovery of the world economy remained slow,
hindered by many challenges such as fund outflows from and
weakening currencies in the emerging economies in the wake of the
tightening of Round 3 of Quantitative Easing (QE3) policy, as well
as the soaring unemployment rates in the EU. The U.S. economy
maintained a solid upturn regardless of tighter QE3 policy and
financial problems. After China reframed economic policy in July,
its economy picked up again and remained healthy. The EU economy
bottomed out in early spring and continued a gradual recovery. The
economy of Southeast Asia also started a gradual recovery, thanks
to an increase in exports to the U.S., EU and China. The Japanese
economy continued its slow recovery on an increase in consumption
spurred by rising stock prices, a last-minute rise in demand before
an increase in the consumption tax, and a package of emergency
economic measures initiated by the government.
In these circumstances, Toshiba Group's net sales increased by
545.8 billion yen to 4,588.8 billion yen (US$43,702.8 million) with
all five of its major business segments recording higher sales,
most notably Electronic Devices & Components segment.
Consolidated operating income increased by 55.0 billion yen to
153.3 billion yen (US$1,460.4 million), the highest ever for an
April-December period.
While the Lifestyle Products & Services segment deteriorated
and the Energy & Infrastructure segment saw a decrease in
operating income, the Community Solutions, Healthcare Systems &
Services and Electronic Devices & Components segments recorded
higher operating incomes. The operating income of the Lifestyle
Products & Services segment improved considerably in the third
quarter against the second quarterand the Electronic Devices &
Components segment achieved record operating income for an
April-December period.
Despite a temporary increase in expenditure in the non-operating
profit and loss account, income before income taxes and
noncontrolling interests was 91.0 billion yen (US$866.7 million),
the same level as a year earlier, owing to the excellent
performance of the Electronic Devices & Components segment. Net
income attributable to shareholders of the Company decreased by
15.8 billion yen to 38.7 billion yen (US$368.3 million) due to
higher income taxes.
Consolidated Results for First Nine Months of FY2013 by
Segment
(April-December, 2013)
(Yen in billions)
Net Sales Operating Income
(Loss)
Change* Change*
--------------------------------- -------- -------------- --------- --------
Energy & Infrastructure 1,178.6 +77.9 +7% 4.3 -49.9
--------------------------------- -------- ------- ----- --------- --------
Community Solutions 915.8 +132.2 +17% 16.2 +2.2
--------------------------------- -------- ------- ----- --------- --------
Healthcare Systems & Services 268.9 +13.9 +5% 14.4 +1.3
--------------------------------- -------- ------- ----- --------- --------
Electronic Devices & Components 1,313.5 +351.3 +37% 168.6 +113.3
--------------------------------- -------- ------- ----- --------- --------
Lifestyle Products & Services 968.2 +14.0 +1% -41.4 -12.5
--------------------------------- -------- ------- ----- --------- --------
Others 347.7 -3.2 -1% -8.9 -0.5
--------------------------------- -------- ------- ----- --------- --------
Eliminations -403.9 - - 0.1 -
================================= ======== ======= ===== ========= ========
Total 4,588.8 +545.8 +14% 153.3 +55.0
--------------------------------- -------- ------- ----- --------- --------
(* Change from the year-earlier period)
Energy & Infrastructure: Higher Sales and Lower Operating
Income
The Energy & Infrastructure segment saw overall sales
increase. Although the Nuclear Power business in Japan and the
Thermal & Hydro Power Systems business saw lower sales, the
overall Social Infrastructure business recorded growth, reflecting
higher sales in the Solar Photovoltaic Systems, Railroad Systems
and Automotive Systems businesses.
The segment as a whole saw lower operating income. The Solar
Photovoltaic Systems business reported higher operating income,
reflecting higher sales. The Thermal & Hydro Power
Systemsbusiness performed well but recorded lower operating income.
The overseas Nuclear Power Systems business deteriorated.
Community Solutions: Higher Sales and Higher Operating
Income
The Community Solutions segment saw overall sales increase. The
Retail Information Systems and Office Equipment business reported
significantly increased sales on positive effects from a business
acquisition and other factors. The Disaster Prevention Systems,
Water & Environmental Systems, Elevator & Building Systems,
Lighting and Commercial Air-Conditioners businesses also saw sales
increases.
The segment as a whole saw higher operating income. While the
Water & Environmental Systems and Lighting businesses saw
deterioration in operating income, the Retail Information Systems
and Office Equipment business reported considerably higher
operating income reflecting higher sales, and the Elevator &
Building Systems and Commercial Air-Conditioners businesses also
recorded improved operating income.
Healthcare Systems & Services:Higher Sales and Higher
Operating Income
The Healthcare Systems & Services segment saw overall sales
increase. Healthcare systems, especially computerized tomography
(CT) systems, recorded higher sales on higher unit sales in
emerging economies and in the overseas service sector.
The segment as a whole saw higher operating income on higher
sales in emerging economies and the overseas service sector.
Electronic Devices & Components: Higher Sales and Higher
Operating Income
The Electronic Devices & Components segment as a whole
reported considerably higher sales. In the Semiconductor and
Storage business, the Memories business saw significantly higher
sales on increased sales volume. The Storage Products business also
recorded higher sales, especially in 3.5-inch hard disk drives
(HDDs).
The segment as a whole saw a considerable rise in operating
income and recorded its highest ever third-quarter result. The
Discrete and System LSIs businesses deteriorated and the Storage
Products business saw lower operating income. However, the Memories
business recorded a notable upswing, maintaining high
profitability. The consolidation of NuFlare Technology, Inc. also
contributed to the rise in the segment's overall income.
Lifestyle Products & Services: Higher Sales and Deteriorated
Operating Income (Loss)
The Lifestyle Products & Services segment saw overall sales
increase. The Visual Products business, which includes LCD TVs, saw
sales decrease due to a shift in focus to limited and clearly
defined sales areas, while the PC and White Goods businesses
recorded higher sales.
The segment as a whole saw deteriorated operating income (loss).
The Visual Products business saw a considerable improvement and
positive operating income in the third quarter, due to positive
effects from restructuring, higher sales prices and a focus on
limited and clearly defined sales areas that lifted the result for
the period as a whole. The White Goods business had to contend with
a weaker yen throughout the period but secured operating income in
the third quarter through efforts to strengthen product lines and
measures to deal with the weaker yen. The PC business felt the
impacts of the cost of inventory clearance and yen depreciation.
The overall deterioration in segment results reflected the
influence of the first six months, the April-September period.
Others:Lower Sales and Deteriorated Operating Income (Loss)
The Others segment as a whole saw sales decrease despite higher
sales in the IT Solutions business, reflecting the May 2013 sale of
all shares of Toshiba Finance Corporation.
Overview of Consolidated Results for the Third Quarter of
FY2013
(October-December, 2013)
(Yen in billions)
3Q Change from
of FY2013 3Q of FY2012
---------------------------------- ----------- -----------------
Net Sales 1,549.6 +192.5
---------------------------------- ----------- -----------------
Operating income (loss) 47.7 +18.1
---------------------------------- ----------- -----------------
Income (Loss) before
income taxes and noncontrolling
interests 39.1 -9.2
---------------------------------- ----------- -----------------
Net income (loss) attributable
to shareholders of the
Company ([1]) 17.2 -12.2
---------------------------------- ----------- -----------------
([1]) "The Company" refers to Toshiba Corporation.
Consolidated net sales increased by 192.5 billion yen to 1,549.6
billion yen (US$14,758.0 million), with all of the five major
segments seeing an increase in net sales. Most notably, the
Electronic Devices & Components segment recorded a significant
increase in sales. Consolidated operating income was 47.7 billion
yen (US$455.0 million), an increase of 18.1 billion yen. While the
Energy & Infrastructure segment saw deteriorated operating
income, the Community Solutions and Healthcare Systems &
Services segments saw higher operating income, the Electronic
Devices & Components segments saw considerably higher operating
income, and the Lifestyle Products & Services segment saw a
significant improvement. Income before income taxes and
noncontrolling interests decreased by 9.2 billion yen to 39.1
billion yen (US$372.5 million). Net income attributable to
shareholders of the Company decreased by 12.2 billion yen to 17.2
billion yen (US$163.3 million).
Consolidated Results for the Third Quarter of FY2013 by
Segment
(October-December, 2013)
(Yen in billions)
Net Sales Operating Income
(Loss)
Change* Change*
--------------------------------- -------- -------------- --------- --------
Energy & Infrastructure 395.5 +43.1 +12% -9.0 -22.3
--------------------------------- -------- ------- ----- --------- --------
Community Solutions 316.0 +44.7 +17% 7.7 +1.3
--------------------------------- -------- ------- ----- --------- --------
Healthcare Systems & Services 83.1 +5.6 +7% 4.4 +0.9
--------------------------------- -------- ------- ----- --------- --------
Electronic Devices & Components 422.4 +89.3 +27% 54.8 +26.8
--------------------------------- -------- ------- ----- --------- --------
Lifestyle Products & Services 356.8 +28.4 +9% -4.7 +12.3
--------------------------------- -------- ------- ----- --------- --------
Others 110.7 +0.7 +1% -5.5 -1.3
--------------------------------- -------- ------- ----- --------- --------
Eliminations -134.9 - - 0.0 -
================================= ======== ======= ===== ========= ========
Total 1,549.6 +192.5 +14% 47.7 +18.1
--------------------------------- -------- ------- ----- --------- --------
(* Change from the year-earlier period)
Energy & Infrastructure: Higher Sales and Deteriorated
Operating Income (Loss)
The Energy & Infrastructure segment saw overall sales
increase. While the Nuclear Power Systems business saw lower sales,
the Solar Photovoltaic Systems and Automotive Systems businesses
recorded sales growth, resulting in an increase in overall sales in
the Social Infrastructure business.
The segment as a whole saw deteriorated operating income (loss).
The Solar Photovoltaic Systems business saw higher operating income
on higher sales. The Nuclear Power Systems business saw
deteriorated operating income (loss). The Thermal & Hydro Power
Systems business performed well but recorded lower operating
income.
Community Solutions: Higher Sales and Higher Operating
Income
The Community Solutions segment saw overall sales increase. The
Retail Information Systems and Office Equipment business reported a
sales increase on positive effects from a business acquisition. The
Disaster Prevention Systems, Lighting and Commercial
Air-Conditioners businesses also reported an increase in sales.
The segment as a whole saw higher operating income, reflecting
higher operating income on higher sales in the Retail Information
Systems and Office Equipment business and steady performance in the
Elevator and Building Systems business.
Healthcare Systems & Services: Higher Sales and Higher
Operating Income
The Healthcare Systems & Services saw overall sales increase
due to higher sales on higher unit sales of not only mainstay CT
systems but also X-ray and other systems, plus higher sales in the
overseas service sector.
The segment as a whole saw higher operating income, reflecting
higher operating income on higher sales in emerging economies and
the overseas service sector.
Electronic Devices & Components: Higher Sales and Higher
Operating Income
The Electronic Devices & Components segment reported
considerably higher sales. In the Semiconductor and Storage
business, the Memoriesbusiness saw considerably higher sales on
increased sales volume. The Storage Products business also recorded
higher sales.
The segment as a whole saw a sharp rise in operating income.
While the Storage Products business saw lower operating income, the
Memoriesbusiness recorded a considerably higher operating income,
maintaining high profitability.
Lifestyle Products & Services: Higher Sales and Improved
Operating Income (Loss)
The Lifestyle Products & Services segment saw overall sales
increase. While the Visual Products business, which includes LCD
TVs, saw sales decrease due to a shift in focus to limited and
clearly defined sales areas. PC sales were brisk in the North
America and the White Goods business was profitable on the timely
introduction of new products.
The Lifestyle Products & Services segment as a whole saw a
considerable improvement in operating income (loss). The PC
business deteriorated on the cost of inventory clearance and yen
depreciation. The Visual Products business saw a considerable
improvement and secured operating income due to the effects of
restructuring, higher sales prices and a shift in focus to limited
and clearly defined sales areas. The White Goods business was
profitable due to efforts to strengthen product lines and measures
to deal with the weaker yen.
Others:Higher Sales and Deteriorated Operating Income(Loss)
Notes
Toshiba Group's Quarterly Consolidated Financial Statements are
based on U.S. generally accepted accounting principles
("GAAP").
Operating income (loss) is derived by deducting the cost of
sales and selling, general and administrative expenses from net
sales. This result is regularly reviewed to support decision-making
in allocations of resources and to assess performance. Certain
operating expenses such as restructuring charges and gains (losses)
from sale or disposition of fixed assets are not included in
it.
Following the acquisition of the Retail Store Solutions business
of IBM of the United States in July 2012, the Company completed the
allocation of the cost of the acquisition to assets and
liabilities, according to Accounting Standards Codification ("ASC")
805 "Business Combinations", in the current fiscal year. Results
for FY2012 have been revised to reflect this change.
The HDD and SSD businesses are referred to as the Storage
Products business.
Qualitative data herein are compared with the same period of the
previous year, unless otherwise noted.
Financial Position and Cash Flows for the first nine months of
FY2013
Total assets increased by 374.7billion yen from the end of March
2013 to 6,474.7billion yen (US$61,664.0 million).
Shareholders' equity, or equity attributable to the shareholders
of the Company, was 1,221.3 billion yen (US$11,631.4 million), an
increase of 187.0 billion yen from the end of March 2013. This
reflects a significant rise in net income (loss) attributable to
shareholders of the Company and an improvement in accumulated other
comprehensive loss due to the easing of yen appreciation toward the
end of the period.
Total interest-bearing debt increased by 91.8 billion yen from
the end of March 2013 to 1,563.4billion yen (US$14,889.4million),
reflecting an increase in capital requirements to meet with
increased orders in the Energy & Infrastructure segment and an
increase in strategic investments in future growth areas.
As a result of the foregoing, the shareholders' equity ratio at
the end of December 2013 was 18.9%, a 1.9-point increase from the
end of March 2013, and the debt-to-equity ratio was 128%, a
14-point decrease from the end of March 2013.
Free cash flow was -121.3billion yen (US$-1,155.3million), 137.6
billion yen higher than the same period of the previous year.
Performance Forecast for FY2014
Toshiba Group's business projections for its consolidated
results for the fiscal year 2013 remain unchanged from those
announced on October 30, 2013.
Other
(1) Changes in significant subsidiaries during the period
(changes in Specified Subsidiaries ("Tokutei Kogaisha") involving
changes in the scope of consolidation):
None
(2) Use of simplified accounting procedures, and particular
accounting procedures in preparation of quarterly consolidated
financial statements:
Income taxes
Interim income tax expense (benefit) is computed by multiplying
income before income taxes and noncontrolling interests for the
nine months ending December 31, 2013 by a reasonably estimated
annual effective tax rate for FY 2013, ending March 31, 2014. The
estimated annual effective tax rate reflects a projected annual
income (loss) before income taxes and noncontrolling interests and
the effect of deferred taxes.
(3) Change in accounting policies:
The Company and its domestic subsidiaries mainly used the
declining-balance method for the depreciation of tangible fixed
assets until March 2013. From April 1, 2013 onward, the
straight-line method has been used instead.
Disclaimer
This report of business results contains forward-looking
statements concerning future plans, strategies and the performance
of Toshiba Group. These statements are based on management's
assumptions and beliefs in light of the economic, financial and
other data currently available. Since Toshiba Group is promoting
business under various market environments in many countries and
regions, they are subject to a number of their risks and
uncertainties. Toshiba therefore wishes to caution readers that
actual results might differ materially from our expectations. Major
risk factors that may have a material influence on results are
indicated below, though this list is not necessarily
exhaustive.
-Major disasters, including earthquakes and typhoons;
-Disputes, including lawsuits, in Japan and other countries;
-Success or failure of alliances or joint ventures promoted in
collaboration with other companies;
-Success or failure of new businesses or R&D investment;
-Changes in political and economic conditions in Japan and
abroad; unexpected regulatory changes;
-Rapid changes in the supply and demand situation in major
markets and intensified price competition;
-Significant capital expenditure for production facilities and
rapid changes in the market;
-Changes in financial markets, including fluctuations in
interest rates and exchange rates.
Note
For convenience only, all dollar figures used in reporting
fiscal year 2013 first nine months and the third quarter results
are valued at 105 yen to the dollar.
More details are available in the attachement.
http://www.rns-pdf.londonstockexchange.com/rns/8637Y_-2014-1-30.pdf
###
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