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SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012      Brief Statement on Consolidated Financi...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY20123. Consolidated Business Results Forecast for...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012Table of Contents of Supplementary Materials1...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY20121. Qualitative Information for the First Quar...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012   [3] Changes in accounting estimates   (Cha...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 3. Consolidated Financial Statements (1)   C...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012                                             ...
SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012(2) Consolidated Statements of Operations and...
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09 01-12 sumco results-q1

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Transcript of "09 01-12 sumco results-q1"

  1. 1. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 Brief Statement on Consolidated Financial Results for the First Quarter (ended April 30, 2012) of Fiscal Year 2012 (ending January 31, 2013) [ Japanese Accounting Standards ] June 8, 2012Company name: SUMCO Corporation TSE First SectionCode: 3436 URL: http://www.sumcosi.com/Representative: Mayuki Hashimoto , PresidentContact person: Hiroshi Shibuya, General Manager, Public Relations & IR Department (Tel: +81-3-5444-3915)Scheduled date of filing of quarterly security report: June 14, 2012Scheduled date of commencement of dividend payment: ―Supplementary materials for quarterly financial results: YesQuarterly results briefing: Yes (For institutional investors and security analysts) (Amounts smaller than one million yen are rounded down)1. Consolidated Business Results for the First Quarter (February 1, 2012–April 30, 2012) of Fiscal Year 2012 (ending January 31, 2013)(1) Consolidated Financial and Operating Results (fiscal year-to-date) (Percentage figures represent year-on-year changes) Net sales Operating income Ordinary income Net income (millions of (millions of (millions of (millions of (%) (%) (%) (%) yen) yen) yen) yen) 1Q of FY2012 52,755 (19.7) 2,917 52.1 1,890 725.5 2,141 ― 1Q of FY2011 65,692 (2.2) 1,918 ― 228 ― (1,981) ― Note: Comprehensive income 1Q of FY2012: 5,894 millions of yen (―%) ; 1Q of FY2011: (1,204) millions of yen (―%) Net income per share for quarter Diluted net income per share for quarter (yen) (yen) 1Q of FY2012 8.31 ― 1Q of FY2011 (7.69) ―(2) Consolidated Financial Position Total assets Equity Shareholders’ equity ratio (millions of yen) (millions of yen) (%) 1Q of FY2012 439,660 132,667 25.9 FY2011 436,420 126,773 25.1 (Reference) Shareholders’ equity: 1Q of FY2012: 113,840 millions of yen; FY2011: 109,406 millions of yen2. Dividend Payments Yearly dividend per share First quarter Second quarter Third quarter Year-end Full year (yen) (yen) (yen) (yen) (yen) FY2011 ― 0.00 ― 0.00 0.00 FY2012 ― FY2012 0.00 ― ― ― (Forecast) Note: (1)Revisions to dividend forecasts made during the quarter under review: No (2)Dividends per share for the fiscal year-ending January 31,2013 are not to be determined.
  2. 2. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY20123. Consolidated Business Results Forecast for Fiscal Year 2012 (ending January 31, 2013) (Percentage figures represent changes from previous year) Net income Net sales Operating income Ordinary income Net income per share (millions of (millions of (millions of (millions of (%) (%) (%) (%) (yen) yen) yen) yen) yen) First Half 108,000 (20.0) 4,000 (26.3) 2,000 30.2 1,000 ― 3.88 Full year 230,000 (6.9) 15,000 ― 11,000 ― 3,000 ― 11.64 Note: Revisions to consolidated business results forecast made during the quarter under review: No4. Others(1) Changes in important subsidiaries during the quarter under review: No New Company : Not applicable Exclusion: Not applicable(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statement: No(3) Changes in accounting policies , changes in accounting estimates and corrections of prior-period errors [1] Changes in accounting policies applied with revisions of accounting standards : Yes [2] Changes in accounting policies other than [1]: Yes [3] Changes in accounting estimates : Yes [4] Corrections of prior-period errors : No Please refer to P.2 “Changes in accounting policies ,changes in accounting estimates and corrections of prior-period errors” for more information.(4) Number of issued shares (common stock) [1] Issued shares as of end of period (including treasury stock): 257,751,739 shares as of end of first quarter of FY2012; 257,751,739 shares as of end of FY2011 [2] Treasury stock as of end of period: 4,886 shares as of end of first quarter of FY2012; 4,866 shares as of end of FY2011 [3] Average number of shares during period (fiscal year-to-date): 257,746,857 shares during first quarter of FY2012; 257,747,089 shares during first quarter of FY2011* Note on implementation of quarterly review procedures: This Brief Statement on Consolidated Financial Results is not subject to quarterly review procedures pursuant to the Financial Instruments and Exchange Act. Review procedures for quarterly financial statements pursuant to the Financial Instruments and Exchange Act had not been completed at the time of the disclosure of this Brief Statement on Consolidated Financial Results.* Explanations regarding appropriate use of forecasts of business results and other special instructions: Forecasts of business results and other forward-looking statements contained in this Brief Statement on Consolidated Financial Results are based on information currently available to the Company and on certain assumptions that the Company considers to be reasonable. Actual results may differ significantly from those projected in the forward-looking statements as a result of various factors. Regarding the assumptions underlying forecasts of business results, please see “Qualitative Information on Consolidated Business Results Forecast” on page 2 of Supplementary Materials. Dividends per share for the fiscal year-ending January 31,2013 are not to be determined , and a forecast will be disclosed as soon as the disclosure becomes possible. Quarterly results briefing for institutional investors and security analysts are scheduled on June 8,2012. Supplementary materials for quarterly financial results are available in our web site after starting the briefing.
  3. 3. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012Table of Contents of Supplementary Materials1. Qualitative Information for the First Quarter of Fiscal Year 2012 (1) Qualitative Information on Consolidated Business Results ······························································ p. 2 (2) Qualitative Information on Consolidated Business Results Forecast ·············································· p. 22. Matters regarding Summary Information (Others) (1) Changes in accounting policies , changes in accounting estimates and corrections of prior-period errors ····································································································· p. 23. Consolidated Financial Statements (1) Consolidated Balance Sheets ··········································································································· p. 4 (2) Consolidated Statements of Operations and Consolidated Statement of Comprehensive Income ··· p. 6 (3) Notes regarding Going Concern Assumption ··················································································· p. 8 (4) Notes regarding Significant Changes in Shareholders’ Equity ························································· p. 8 (5) Subsequent Events ··························································································································· p. 8 1
  4. 4. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY20121. Qualitative Information for the First Quarter of Fiscal Year 2012 (1) Qualitative Information on Consolidated Business Results The market for silicon wafers for semiconductors bottomed out at the beginning of the year as customers completed inventory adjustments, and during the quarter under review (February 1–April 30, 2012) Taiwan and China began to lead rallying demand. In addition to cost-cutting efforts already under way, based on the Business Reorganization Plan announced on February 2, 2012, the SUMCO Group has withdrawn from the solar wafer business, and started to rigorously reduce indirect costs and other business expenses and minimize excess production capacity. As a result, for the quarter under review (February 1–April 30, 2012), the SUMCO Group registered consolidated net sales of 52,755 millions of yen, operating income of 2,917 millions of yen, and ordinary income of 1,890 millions of yen. As the Group registered a compensation income of 527 millions of yen relating to the solar wafer business in the extraordinary income section, net income came to 2,141 millions of yen. (2) Qualitative Information on Consolidated Business Results Forecast Although consumer purchases of mobile terminals such as smartphones and tablet computers are likely to bolster the semiconductor market, increasing uncertainty for the global economy fueled by the fiscal crisis in Europe, the risk of another downturn in the US economy, and downward revision of emerging market growth rates will have unpredictable effects on the semiconductor market. Accordingly, the Company’s consolidated business results forecasts remain unchanged from the forecasts disclosed on March 8, 2012.2. Matters regarding Summary Information (Others) (1) Changes in accounting policies , changes in accounting estimates and corrections of prior-period errors [1] Changes in accounting policies applied with revisions of accounting standards (Change in depreciation method for tangible fixed assets) In conjunction with changes to the Corporation Tax Act (the Act for Partial Revision of the Income Tax Act, Etc., in Order to Construct a Tax System Addressing Changes in the Socio-Economic Structure [Act No. 114 of 2011] and the Cabinet Order for Partial Revision of the Order for Enforcement of the Corporation Tax Act [Cabinet Order No. 379 of 2011]), from the quarter under review, the Company and its consolidated subsidiaries in Japan have adopted a new depreciation method for tangible fixed assets acquired on or after April 1, 2012 based on the revised law. This change will have minimal impact on income and loss. [2] Changes in accounting policies other than [1] (Change in depreciation method for tangible fixed assets) Until the end of the previous fiscal year, consolidated subsidiary FORMOSA SUMCO TECHNOLOGY CORPORATION used the declining-balance method of calculating depreciation for its machinery, but from the quarter under review it has changed to the straight-line method. Based on the Business Reorganization Plan approved at its February 2012 board of directors meeting, the SUMCO Group has decided to reorganize production bases in its semiconductor silicon wafer business. In addition , increased production capacity will gradually come on line this fiscal year at FORMOSA SUMCO TECHNOLOGY CORPORATION, which has prompted the company to examine depreciation methods based on demand forecasts for its products. Since it anticipates longer-term and more stable utilization of equipment, it has changed to the straight-line method of depreciation beginning from the quarter under review. As a result, operating income, ordinary income, and income before income taxes and minority interests for the quarter under review have each increased by 270 millions of yen compared to figures calculated using the previous declining-balance method. 2
  5. 5. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 [3] Changes in accounting estimates (Change in depreciation period of tangible fixed assets)Until the end of the previous fiscal year, consolidated subsidiary FORMOSA SUMCO TECHNOLOGYCORPORATION calculated depreciation on machinery based on a depreciation period of eight years. However,the company has taken the reorganization of production bases associated with implementation of measures set outin the Business Reorganization Plan during the quarter under review as an opportunity to change the depreciationperiod of machinery to 12 years.As a result, operating income, ordinary income, and income before income taxes and minority interests for thequarter under review have each increased by 183 millions of yen compared to figures calculated using theprevious eight-year method.(additional information) Application of accounting standard and guidance for accounting changes and errorcorrectionsFor accounting changes and error corrections made on and after the beginning of the quarter under review, theCompany is applying the Accounting Standard for Accounting Changes and Error Corrections (ASBJ StatementNo. 24; December 4, 2009) and the Guidance on Accounting Standard for Accounting Changes and ErrorCorrections (ASBJ Guidance No. 24; December 4, 2009). 3
  6. 6. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 3. Consolidated Financial Statements (1) Consolidated Balance Sheets (millions of yen) End of FY2011 End of 1Q of FY2012 (Jan 31, 2012) (April 30, 2012)Assets Current assets Cash and time deposits 25,464 17,649 Notes and accounts receivable 36,181 40,713 Finished products 15,530 13,739 Work in process 14,527 14,274 Raw materials and supplies 47,095 60,740 Others 12,223 10,493 Allowance for doubtful accounts (116) (200) Total current assets 150,906 157,411 Fixed assets Tangible fixed assets Buildings and structures (net) 98,568 97,788 Machinery and transportation equipment 50,619 46,811 (net) Land 20,178 20,209 Construction in progress 21,769 24,785 Others (net) 967 959 Total tangible fixed assets 192,104 190,554 Intangible fixed assets Goodwill 16,868 16,454 Others 3,480 3,273 Total intangible fixed assets 20,348 19,727 Investments and other assets Investment securities 897 1,150 Long-term advance payments 62,051 60,708 Deferred tax assets 4,893 5,110 Others 5,572 5,357 Allowance for doubtful accounts (353) (360) Total investments and other assets 73,060 71,967 Total fixed assets 285,513 282,248 Total assets 436,420 439,660 4
  7. 7. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 (millions of yen) End of FY2011 End of 1Q of FY2012 (Jan 31, 2012) (April 30, 2012)Liabilities Current liabilities Notes and accounts payable 26,661 30,164 Short-term borrowings 95,693 99,242 Lease obligations 9,545 9,029 Accrued income taxes 484 278 Reserve for bonuses 2,452 3,885 Others 19,684 14,954 Total current liabilities 154,521 157,554 Long-term liabilities Long-term debt 118,298 115,294 Long-term lease obligations 11,485 9,222 Liability for employee retirement benefits 18,844 19,077 Others 6,498 5,842 Total long-term liabilities 155,126 149,437 Total liabilities 309,647 306,992Equity Shareholders’ equity Capital stock 114,107 114,107 Capital surplus 89,291 - Retained earnings (82,692) 8,740 Treasury stock (8) (8) Total shareholders’ equity 120,697 122,838 Accumulated other comprehensive loss Net unrealized gain on available-for-sale 149 397 securities Deferred gain on derivatives under hedge 10 40 accounting Land revaluation surplus 2,671 2,671 Foreign currency translation adjustments (14,121) (12,107) Total accumulated other comprehensive loss (11,290) (8,998) Minority interests 17,366 18,827 Total equity 126,773 132,667Total liabilities and equity 436,420 439,660 5
  8. 8. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012(2) Consolidated Statements of Operations and Consolidated Statement of Comprehensive Income [1] Consolidated Statements of Operations (millions of yen) 1Q of FY2011 1Q of FY2012 (February 1, 2011– (February 1, 2012– April 30, 2011) April 30, 2012)Net sales 65,692 52,755Cost of sales 56,669 43,631Gross profit 9,022 9,124Selling, general and administrative expenses 7,103 6,206Operating income 1,918 2,917Non-operating income Interest income 14 3 Dividend income 20 20 Foreign exchange gain 208 - Gain on sales of fixed assets 422 15 Subsidy income 10 267 Others 91 106 Total non-operating income 767 412Non-operating expenses Interest expense 992 827 Depreciation 1,240 116 Foreign exchange loss - 371 Others 224 125 Total non-operating expenses 2,457 1,440Ordinary income 228 1,890Extraordinary income Compensation income - 527 Total extraordinary income - 527Extraordinary loss Loss incurred from business restructuring - 57 Loss on adjustment for changes of accounting standard for 560 - asset retirement obligations Loss from a natural disaster 1,269 - Total extraordinary loss 1,830 57Income (loss) before income taxes and minority interests (1,601) 2,360Income taxes 344 180Net income (loss) before minority interests (1,945) 2,180Minority interests 35 38Net income (loss) (1,981) 2,141 6
  9. 9. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012 [2] Consolidated Statement of Comprehensive Income (millions of yen) 1Q of FY2011 1Q of FY2012 (February 1, 2011– (February 1, 2012– April 30, 2011) April 30, 2012)Net income (loss) before minority interests (1,945) 2,180Other comprehensive income Net unrealized gain (loss) on available-for-sale securities (177) 248 Deferred gain on derivatives under hedge accounting 148 30 Foreign currency translation adjustments 769 3,436 Total other comprehensive income 740 3,714Comprehensive income (loss) (1,204) 5,894 Total comprehensive income (loss) attributable to Owners of the parent (1,512) 4,434 Minority interests 307 1,460 7
  10. 10. SUMCO Corporation: Consolidated Financial Results for First Quarter of FY2012(3) Notes regarding Going Concern AssumptionNot applicable(4) Notes regarding Significant Changes in Shareholders’ EquityBased on resolutions by the ordinary general shareholders meeting held on April 26, 2012, the capital reserve wasreduced and other capital surplus appropriated on April 27, 2012 as detailed below.[1] Decrease of capital reserve and increase of other capital surplusIn accordance with Article 448, Paragraph 1 of the Companies Act, capital reserve was reduced and thecorresponding amount was transferred to other capital surplus. Decrease in capital reserve 86,046,254,601 yen Increase in other capital surplus 86,046,254,601 yen[2] Appropriation of surplusIn accordance with Article 452 of the Companies Act, other capital surplus was reduced and the correspondingamount was transferred to retained earnings brought forward. Decrease in other capital surplus 89,292,248,419 yen Increase in retained earnings brought forward 89,292,248,419 yen(5) Subsequent events(Completion of payment for Class A shares issued by third-party allotment, and reduction in capital reserve andappropriation of surplus simultaneous with share issue)In conjunction with payment of funds associated with the issue of Class A shares on May 11, 2012, the followingamounts were transferred.[1] Increase in capital stock and capital reserve Increase in capital stock 22,500,000,000 yen Increase in capital reserve 22,500,000,000 yen[2] Decrease in capital reserve and increase in other capital surplus Decrease in capital reserve 12,000,000,000 yen Increase in other capital surplus 12,000,000,000 yen[3] Decrease in other capital surplus and increase in retained earnings brought forward: Decrease in other capital surplus 6,823,462,866 yen Increase in retained earnings brought forward 6,823,462,866 yen 8

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