Translation
Notice: This English version is a translation of the original disclosure in Japanese released on October 31, 2022 at 15:00 (GMT+9) and is only for reference purposes. In the case where any differences occur between the English version and the original Japanese version, the Japanese version will prevail.
Member of the Financial Accounting Standards Foundation
October 31, 2022
CONSOLIDATED FINANCIAL RESULTS
for the Third Quarter of the Year Ending December 31, 2022 (Unaudited)
Company name: | Nippon Electric Glass Co., Ltd. | |
Listing: | Prime Market of the Tokyo Stock Exchange | |
Securities identification code: | 5214 | |
URL: | https://www.neg.co.jp/ | |
Representative: | Motoharu Matsumoto, President and Representative Director | |
Inquiries: | Mamoru Morii, Director and Senior Vice President | |
TEL: +81-77-537-1700 (from overseas) | ||
Scheduled date to file quarterly report: | November 11, 2022 | |
Scheduled date to commence dividend payments: | - | |
Supplementary material on quarterly financial results: | None | |
Quarterly financial results presentation meeting: | None |
(in millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated performance for the third quarter of the year ending December 31, 2022 (From January 1, 2022 to September 30, 2022)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | |||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||
owners of parent | ||||||||
For the nine months ended | % | % | % | % | ||||
September 30, 2022 | 251,202 | 15.5 | 23,254 | (6.0) | 34,653 | 5.2 | 29,185 | 40.2 |
September 30, 2021 | 217,506 | 24.2 | 24,749 | 100.0 | 32,939 | 160.5 | 20,815 | 72.6 |
Note: Comprehensive income: | ||||||||
For the nine months ended September 30, 2022: | 53,260million yen [78.5%] | |||||||
For the nine months ended September 30, 2021: | 29,834million yen [440.3%] | |||||||
Earnings | Diluted Earnings | |||||||
per share | per share | |||||||
For the nine months ended | yen | yen | ||||||
September 30, 2022 | 313.70 | - | ||||||
September 30, 2021 | 215.37 | - |
Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied from the beginning of the first quarter of the fiscal year ending December 31, 2022, and relevant figures for the third quarter of the fiscal year ending December 31, 2022 are after the application of said accounting standards and others.
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- Consolidated financial position
Total assets | Net assets | Equity ratio | |
As of | % | ||
September 30, 2022 | 755,430 | 541,428 | 71.1 |
December 31, 2021 | 698,129 | 499,742 | 70.9 |
Reference: Equity: |
As of September 30, 2022: 537,194 million yen
As of December 31, 2021: 495,070 million yen
Note: "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied from the beginning of the first quarter of the fiscal year ending December 31, 2022, and relevant figures for the third quarter of the fiscal year ending December 31, 2022 are after the application of said accounting standards and others.
2. Cash dividends
Annual dividends | |||||
First quarter-end | Second quarter-end | Third quarter-end | Year-end | Total | |
For the year ended | yen | yen | yen | yen | yen |
- | 50.00 | - | 60.00 | 110.00 | |
December 31, 2021 | |||||
For the year ending | - | 60.00 | - | --- | --- |
December 31, 2022 | |||||
For the year ending | --- | --- | --- | 60.00 | 120.00 |
December 31, 2022 | |||||
(Forecasts) |
Note: Revision of the forecasts most recently announced: None
3. Consolidated earnings forecasts for the year ending December 31, 2022 (From January 1, 2022 to December 31, 2022)
(Percentages indicate year-on-year changes.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Earnings | |||||
to owners of parent | per share | ||||||||
% | % | % | % | yen | |||||
For the year | 330,000 | 13.0 | 25,000 | (23.7) | 35,000 | (22.2) | 30,000 | 7.5 | 322.43 |
ending December 31, 2022 | |||||||||
Note: 1. Revision of the forecasts most recently announced: Yes
2. For the revision to consolidated earnings forecasts, please refer to "Notice Concerning Revision of Consolidated Earnings Forecasts for Fiscal 2022," which was announced today (October 31, 2022).
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* Notes
- Changes in significant subsidiaries during the nine months under review (changes in specified subsidiaries resulting in the change in scope of consolidation): None
- Application of special accounting for preparing the quarterly consolidated financial statements: Yes
- Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections
- Changes in accounting policies due to revisions to accounting standards: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement of prior period financial statements after error corrections: None
- Number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2022 | 99,523,246 shares |
As of December 31, 2021 | 99,523,246 shares |
- Number of treasury shares at the end of the period
As of September 30, 2022 | 6,480,391 shares |
As of December 31, 2021 | 6,495,982 shares |
- Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the nine months ended September 30, 2022 | 93,036,610 shares |
For the nine months ended September 30, 2021 | 96,650,996 shares |
- This quarterly financial results report is exempt from quarterly review by Certified Public Accountants or Audit firm.
- Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on certain assumptions deemed to be reasonable by the Company and its subsidiaries ("the Company Group") and include risks and contingencies. Actual business results may differ substantially due to a number of factors. For more details, please refer to the section of "(2) Information regarding consolidated earnings forecasts and other forward-looking statements in Qualitative Information Regarding Consolidated Results for the Nine Months" on page 5.
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Qualitative Information Regarding Consolidated Results for the Nine Months
- Information regarding operating results (Nine months ended September 30, 2022)
- Overview
In the second quarter of the fiscal year (from April 1 to June 30, 2022) and thereafter, shipments of glass for flat panel displays (FPDs) fell significantly due to the impact of inventory adjustments by customers, but for other products the weakening yen pushed up yen-denominated sales. In glass fiber, we made progress in revising prices and levying surcharges aimed at recovering distribution and energy costs. Shipments of heat-resistant glass and glass tubing for pharmaceutical and medical use increased. As a result, net sales exceeded those of the same period of the previous fiscal year (from January 1 to September 30, 2021).
Operating profit fell below the levels in the same period of the previous fiscal year due to the impact of soaring raw material and fuel prices and the effect of lower capacity utilization rates for glass for FPDs, but ordinary profit exceeded those of the same period of the previous fiscal year, mainly as a result of increases in foreign exchange gains. Profit attributable to owners of parent was significantly higher than that of the same period of the previous fiscal year due to an increase in ordinary profit, along with the recording of insurance claim income, etc.
As a change in accounting policy, "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and relevant revised ASBJ regulations have been applied from the beginning of the first quarter of the fiscal year ending December 31, 2022. As a result, year on year comparisons are based on figures calculated using different standards.
B. Operating results | (Billions of yen) | ||||
Nine months ended | Nine months ended | Change (%) | |||
September 30, 2021 | September 30, 2022 | ||||
Net sales | 217.5 | 251.2 | 16 | ||
Operating profit | 24.7 | 23.2 | (6) | ||
Ordinary profit | 32.9 | 34.6 | 5 | ||
Profit attributable | to | 20.8 | 29.1 | 40 | |
owners of parent | |||||
Note: Amounts less than 100 million yen are omitted.
(Sales by products)
Nine months ended | Nine months ended | Change | ||||||
Reporting | September 30, 2021 | September 30, 2022 | ||||||
Segment | ||||||||
segment | billions | (%) | billions | (%) | billions | (%) | ||
of yen | of yen | of yen | ||||||
Electronics | ||||||||
and | 114.0 | 52 | 116.4 | 46 | 2.4 | 2 | ||
Glass | Information | |||||||
Technology | ||||||||
Business | ||||||||
Performance | ||||||||
Materials and | 103.4 | 48 | 134.7 | 54 | 31.2 | 30 | ||
Others | ||||||||
Total | 217.5 | 100 | 251.2 | 100 | 33.6 | 16 |
Note: Amounts less than 100 million yen are omitted.
(Net sales)
Electronics and Information Technology:
Although sales of glass for FPDs, mainly for 10.5 generation size glass, were strong in the first quarter of the fiscal year (from January 1 to March 31, 2022), shipments have fallen significantly
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since the beginning of the second quarter due to the impact of inventory adjustments by customers. Demand for glass for optical and electronic devices remained strong mainly for use in semiconductors. As a result, sales in Electronics and Information Technology increased only slightly compared to the same period of the previous fiscal year.
Performance Materials and Others:
From the beginning of the third quarter (from July 1 to September 30, 2022), glass fiber demand weakened mainly for high-performance resin used in auto parts, but sales were supported by revisions to product prices and the levying of surcharges aimed at recovering distribution and energy costs in addition to the weaker yen. Heat-resistant glass saw continued robust demand. Glass tubing for pharmaceutical and medical use also recorded strong sales. As a result, sales of Performance Materials and Others significantly exceeded those of the same period of the previous fiscal year.
(Profit/loss)
With raw material and fuel prices and distribution expenses soaring, and the progressive weakening of the yen pushing up costs, we strengthened efforts to reduce expenses, improve productivity, among other initiatives, and made progress in revising product prices and levying various surcharges. Nevertheless, the impact of rising costs due to lower capacity utilization rates for glass for FPDs was significant, and operating profit fell below the levels in the same period of the previous fiscal year. On the other hand, ordinary profit was higher than that of the same period of the previous fiscal year mainly due to an increase in foreign exchange gains attributable to revaluation of receivables and payables related to borrowings of overseas subsidiaries in non- operating income. Profit attributable to owners of parent was significantly higher than that of the same period of the previous fiscal year mainly due to an increase in ordinary profit, as well as the recording of extraordinary income on insurance claim income related to power outages at domestic plants in 2020.
- Information regarding consolidated earnings forecasts and other forward-looking statements (Consolidated earnings forecasts for the year ending December 31, 2022)
(Billions of yen) | ||||
Year ending | ||||
December 31, 2022 | Change | Percent | ||
(From January 1, 2022 to December | (B-A) | change | ||
31 ,2022) | (%) | |||
Previous | Revised | |||
forecasts (A) | forecasts (B) | |||
Net sales | 330.0 | 330.0 | - | - |
Operating profit | 37.0 | 25.0 | (12.0) | (32) |
Ordinary profit | 37.0 | 35.0 | (2.0) | (5) |
Profit attributable | ||||
to owners of | 30.0 | 30.0 | - | - |
parent |
Note: Amounts less than 100 million yen are omitted.
Due to accelerating inflation, the impact of geopolitical risks and other factors, the outlook for the global economy remains uncertain, and we believe that a recovery in capacity utilization rates at customers for glass for FPDs will require time. Demand for glass fiber is weak, mainly in high- performance resin used in auto parts, but we expect the weaker yen and other factors to provide support for sales. We expect firm demand of other products such as heat-resistant glass and glass tubing for pharmaceutical and medical use to continue, and shipments to remain strong. As a result, we have left our net sales forecast unchanged from that of the previous announcement (February 2, 2022).
Conversely, soaring raw material and fuel prices and rising costs resulting from the weaker yen are expected to put further pressure on profits. As well as continuing to reduce expenses, improve productivity, and tailor capacity utilization to demand trends, we will strive to maintain profitability
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Nippon Electric Glass Co. Ltd. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2022 06:16:12 UTC.