OMRON Corporation Reports Fiscal 2009 Interim Consolidated Performance

http://www.businesswire.com/news/home/20091028006766/en

TOKYO--(Business Wire)--
OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated
performance for the interim period of fiscal 2009, ending March 31, 2010.

Consolidated net sales in the interim period (April 1 - September 30, 2009)
decreased 34.5% compared with the same period of the previous fiscal year to JPY
232,371 million, reflecting the global economic slowdown and weak capital
investment among manufacturers. In addition, although the Group promoted
thorough profitability measures based on its fiscal 2009 policy of "Sweeping
Profit Structure Reform Guided by 'Selection and Focus' and 'Working Together as
One'," the significant decrease in net sales led to an operating loss of JPY
7,685 million. Loss before income taxes was JPY 9,617 million, and net loss
attributable to shareholders was JPY 6,900 million.

Note: All amounts are rounded to the nearest million yen.

1.Overview of Conditions

The global economic downturn from the second half of the previous fiscal year
appears to have bottomed out in many sectors, and a modest but steady recovery
trend has begun. The economies of Japan and Southeast Asia are gradually
regaining their luster, while the Chinese economy is growing stronger on the
back of domestic demand influenced by the government's fiscal policies. On the
other hand, economic conditions remain weak in the United States and Europe.

In markets related to the OMRON Group, positive indications began to appear in
the interim period, including an increase in demand centered on commercial and
environment-related products, supported by governmental measures in various
countries aimed at encouraging consumption and preserving the environment.
However, growth in capital investment demand is expected to require additional
time with a continuing strong sense of surplus production facilities among
manufacturers, OMRON's core customer group.

Under these circumstances and amid a trend of slow sales due to the stagnant
economic environment, the Group will work together to implement profitability
initiatives in the short term including thorough cost reductions, while
promoting structural reform in the medium term to build a corporate structure
that is resilient to changes in the external environment.

The average exchange rates for the interim period were USD 1 = JPY 95.1 and EUR
1 = JPY 132.1 (10.4 yen and 29.7 yen less than the same period of the previous
fiscal year, respectively).

Consolidated Sales and Income
(Percentages represent changes compared with the same period of the previous fiscal year.)
Millions of yen - except per share data and percentages
Six months ended Six months ended
September 30, 2009 September 30, 2008
Change (%) Change (%)
Net sales 232,371 (34.5) 354,670 (3.1)
Operating income (loss) (7,685) - 18,603 (30.0)
Income (loss) before income taxes (9,617) - 19,291 (29.4)
Net income (loss) attributable to shareholders (6,900) - 12,421 (33.9)
Net income (loss) per share attributable to (31.34) 56.14
shareholders, basic (yen)
Net income per share attributable to shareholders, - 56.14
diluted (yen)
Note: Net income (loss) attributable to shareholders is identical in content to net income (loss) for the year ended
March 31, 2009.

Results by Business Segment

Industrial Automation Business (IAB)

IAB segment sales for the interim period totaled JPY 87,420 million, a decrease
of 44.8% compared with the same period of the previous fiscal year.

In Japan, production cutbacks among manufacturers finally bottomed out in the
first quarter. Production began to recover at the start of the second quarter,
primarily in the automotive and electronic component and semiconductor
industries, fueling an upturn in demand for OMRON's sensors and other products.

Overseas, sales recovered continually throughout the first and second quarters
as production capacity utilization and capital investment increased in China,
reflecting expansion of domestic demand. In Europe, however, worsening economic
conditions and sluggish exports continued, but there were indications of a
gradual improvement with the end of a cycle of inventory adjustments. In North
America, demand for OMRON's products remained weak due to factors including a
significant slump in petroleum-related industries and worsening conditions in
the automotive industry.

Electronic Components Business (ECB)

ECB segment sales for the interim period were JPY 55,147 million, a decrease of
23.2% compared with the same period of the previous fiscal year.

In Japan, the recovery trend for many consumer and commercial products is
becoming clear with the end of the cycle of inventory adjustments that began in
the second half of the previous fiscal year. On the other hand, sales of
electronic components for industrial equipment were weak compared to the same
period of the previous fiscal year, though the steep decline in demand from the
second half of the previous year finally leveled off.

Overseas, demand for OMRON's products was extremely weak amid an unprecedentedly
severe operating environment, particularly in Europe. However, in China and
Southeast Asia, economic conditions began recovering in the second quarter and
demand turned upward for miniature backlights for consumer devices, relays for
home electronics, flexible printed circuit connectors, mobile phone input
devices and other components.

Automotive Electronic Components Business (AEC)

AEC segment sales for the interim period totaled JPY 31,726 million, a decrease
of 37.0% compared with the same period of the previous fiscal year.

Global automotive demand, which had fallen sharply since the second half of the
previous fiscal year, finally bottomed out and recovered slightly in response to
stimulus programs to promote automobile purchases in various countries.

In Japan, demand picked up due to preferential tax treatment for eco-friendly
cars. Demand has also been recovering in China and other developing countries
with the effect of the aforementioned stimulus programs. In North America,
demand from certain manufacturers was steady but decreased substantially
overall.

Social Systems Business (SSB)

SSB segment sales for the interim period totaled JPY 20,655 million, a decrease
of 30.1% compared with the same period of the previous fiscal year.

In the public transportation systems business, demand for OMRON's products
decreased significantly compared with the same period of the previous fiscal
year. New train line development and investment by railway companies related to
the adoption of IC cards continued to decline, and railway companies also cut
back capital investment due to the effects of the recession and reduced
expressway tolls on holidays. The social sensor solutions business is seeing
expansion of new solutions in the road management systems business, but demand
decreased with the effect of cutbacks in investment by the manufacturing and
commercial distribution industries.

In the related maintenance business, demand decreased due to the effect of
cutbacks in capital investment by manufacturers and a decrease in public
transportation-related construction. In the software business, demand also
decreased due to cutbacks in capital investment by manufacturers.

Healthcare Business (HCB)

HCB segment sales for the interim period totaled JPY 29,710 million, a decrease
of 9.1% compared with the same period of the previous fiscal year.

In Japan, despite solid demand for home-use medical equipment driven by digital
blood pressure monitors and digital thermometers, demand for professional-use
equipment was essentially flat compared with the same period of the previous
fiscal year due in part to curtailment or postponement of investment by
hospitals.

Overseas, demand in China remained strong, reflecting rising health management
awareness in provincial cities. However, sales declined substantially in North
America and Europe due to continued poor economic conditions as well as the
impact of the strengthening yen on currency translation.

2.Consolidated Financial Position and Cash Flows

Total assets as of September 30, 2009 decreased JPY 16,643 million compared with
the end of the previous fiscal year to JPY 521,637 million due to a decrease in
notes and accounts receivable - trade and a decrease in inventories due to
inventory reduction measures, despite an increase in the value of investment
securities following a recovery in stock prices from the end of previous fiscal
year.

In addition, total liabilities decreased JPY 8,906 million compared with the end
of the previous fiscal year to JPY 229,393 million due to a decrease in notes
and accounts payable - trade. As a result, net assets decreased JPY 7,737
million to JPY 292,244 million, and the net worth ratio increased to 55.7% from
55.4% at the end of the previous fiscal year.

Net cash provided by operating activities for the six months ended September 30,
2009 was JPY 21,252 million (a decrease of JPY 6,788 million compared with the
same period of the previous fiscal year) with the effect of decreases in notes
and accounts receivable - trade and inventories, although the Company recorded a
net loss for the period.

Net cash used in investing activities was JPY 13,162 million (a decrease in cash
used of JPY 7,600 million compared with the same period of the previous fiscal
year) as a result of conducting highly selective capital investment.

Net cash used in financing activities was JPY 5,454 million (an increase of JPY
1,625 million compared with the same period of the previous fiscal year) because
although the Company paid dividends, it also reduced short-term debt.

As a result, the balance of cash and cash equivalents at September 30, 2009
increased JPY 3,114 million from the end of the previous fiscal year to JPY
49,745 million.

Consolidated Financial Position
Millions of yen - except per share data and percentages
As of September 30, 2009 As of March 31, 2009
Total assets 521,637 538,280
Net assets 292,244 299,981
Net worth ratio (%) 55.7 55.4
Net assets per share (yen) 1,320.62 1,355.41

Consolidated Cash Flows
Millions of yen
Six months ended Six months ended
September 30, 2009 September 30, 2008
Net cash provided by operating activities 28,040 21,252
Net cash used in investing activities (20,762) (13,162)
Net cash used in financing activities (3,829) (5,454)
Cash and cash equivalents at end of period 41,457 49,745

3.Dividends
Year ended Year ending Year ending

March 31, 2009 March 31, 3010 March 31, 2010
(projected)
Dividends per 1st quarter dividend (yen) - -
share
2nd quarter dividend (yen) 18.00 7.00
3rd quarter dividend (yen) - -
Year-end dividend (yen) 7.00 -
Full year (yen) 25.00 -
Notes: 1. Revisions to projected dividends during the interim period: Yes
2. Dividends for the third quarter of fiscal 2009 (ending March 31, 2010) and thereafter are undetermined.

4.Fiscal 2009 Consolidated Performance Forecast

In steadily carrying out its policy for fiscal 2009, the OMRON Group will work
to build a corporate structure that is resilient to changes in the economic
environment.

Results for the interim period were on track to exceed the scope of the
Company's initial forecast owing to the bottoming out of economic conditions and
the success of the profitability initiatives implemented throughout the OMRON
Group. However, uncertainty regarding the economic environment continues, with
capital investment still not showing a full-fledged recovery. Consequently,
there is no change to the consolidated performance forecast for the full fiscal
year announced on April 27, 2009.

Projected Results for Fiscal 2009 (Ending March 31, 2010)
(Percentages represent changes compared with the previous fiscal year or the previous interim period,
as applicable.)
Full year ending March 31, 2010
Millions of yen Change (%)
Net sales 510,000 (18.7)
Operating income 0 -
Income (loss) before income taxes (3,500) -

The assumed exchange rates for the third quarter onward in the performance
forecast for the fiscal year are US$1 = JPY 90 and 1 Euro = JPY 130.

Note: The performance forecast and other forward-looking statements are based on
information available to the Company at the present time, and on certain
assumptions judged by the Company to be reasonable. Due to a variety of factors,
actual results may differ materially from the forecast.

About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field
of automation. Established in 1933 and headed by President & CEO Hisao Sakuta,
OMRON has over 36,000 employees around the world working to provide products and
services to customers in a variety of fields, including industrial automation,
electronic components, social systems (ticket gate machines, ticket vending
machines, and traffic control) and healthcare. For more information, visit
OMRON's website at www.omron.com.

OMRON Corporation
Hiroshi Oishi, +81-3-3436-7170
General Manager
Investor Relations Department

Copyright Business Wire 2009