OMRON Corporation Reports Fiscal 2012 Third Quarter Consolidated Performance<6645.OS>

Wed Jan 30, 2013 1:20am EST

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TOKYO--(Business Wire)--
OMRON Corporation (TOKYO:6645)(ADR:OMRNY) today reported consolidated
performance for the third quarter of fiscal 2012, ending March 31, 2013. 

Consolidated net sales for the nine months ended December 31, 2012, increased
2.4 percent compared with the same period of the previous fiscal year to JPY
463,681 million. Operating income decreased 7.6% to JPY 27,848 million, income
before income taxes increased 7.2% to JPY 28,216 million, and net income
attributable to shareholders increased 77.7% to JPY 20,684 million. 

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

1.Overview of Conditions

In the first nine months of fiscal 2012 (April - December 2012), although sales
of IAB (Industrial Automation Business) were sluggish, AEC (Automotive
Electronic Components Business), SSB (Social Systems, Solutions and Service
Business) and HCB (Healthcare Business) performed strongly, meaning the Omron
Group's net sales were essentially unchanged from the same period of the
previous fiscal year when temporary factors including the Great East Japan
Earthquake and floods in Thailand affected the business environment. The Omron
Group's perception of conditions in the nine months ended December 31, 2012 is
as follows.

 Economic and Market Conditions by Region                                                                                                                      
 Japan:     The automotive industry was firm but the semiconductor and other industries weakened, and business confidence worsened.                            
 U.S.:      The automotive and other industries were firm, yet business confidence deteriorated overall.                                                       
 Europe:    The slump continued, despite a sense that the economic downturn caused by financial instability had bottomed out.                                  
 China:     Despite solid demand, the growth rate slowed due to worsening economic conditions, etc.                                                            
 Asia:      Conditions were firm in the emerging markets of ASEAN, including reconstruction demand in Thailand. However, the semiconductor industry weakened.  


 Conditions in the Omron Group's Primary Related Markets                                                                                                       
 Automotive-related:                                 Capital investment and component demand was firm everywhere but Europe.                                   
 Semiconductor-related:                              Capital investment demand was weak, other than for smartphones.                                           
 Machine tool-related:                               Capital investment demand was firm, mainly in emerging markets.                                           
 Home appliance and electronic component-related:    Capital investment in large home appliances and component demand were firm.                               
 Healthcare equipment-related:                       Demand was firm due to an increase in purchasers in connection with economic growth in emerging markets.  


The average exchange rates for the nine months ended December 31, 2012 were USD
1 = JPY 80.4 and EUR 1 = JPY 103.2 (1.2 yen more and 8.2 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                           
                                            Nine months ended                            Nine months ended                   
                                            December 31, 2012                            December 31, 2011                   
                                                              Change (%)                                   Change (%)        
 Net sales                                  463,681           2.4                        452,859           0.3               
 Operating income                           27,848            (7.6     )                 30,137            (18.9    )        
 Income before income taxes                 28,216            7.2                        26,323            (26.8    )        
 Net income attributable to shareholders    20,684            77.7                       11,641            (49.8    )        
 Note: Comprehensive income (loss):                                                                                          
 Nine months ended December 31, 2012: JPY 30,165 million (-% change);                                                        
 Nine months ended December 31, 2011: JPY (2,302 million) (-% change)                                                        
                                                                                                                             


Results by Business Segment

 IAB (Industrial Automation Business)                                                      
 Millions of yen, except percentages                                                       
                                       Nine months ended     Nine months ended     Change  
                                       December 31, 2011     December 31, 2012             
 Sales to external         Japan       92,204                87,071                -5.6%   
 customers                                                                                 
                           Overseas    113,706               105,381               -7.3%   
                           Total       205,910               192,452               -6.5%   
 Segment profit                        27,764                20,290                -26.9%  
                                                                                           


Sales in Japan

Demand was basically unchanged from the same period of the previous fiscal year
in automotive and electronic component-related industries but capital investment
demand was sluggish in semiconductor-related industries. Consequently, sales
weakened. Sales in Japan for the nine months ended December 31, 2012 decreased
compared with the same period of the previous fiscal year due in part to the
absence of the temporary rise in sales from the impact of the Great East Japan
Earthquake and floods in Thailand during the same period of fiscal 2011. 

Overseas Sales

Performance in the Americas was firm, supported by a robust automotive industry.
In Europe, demand remained weak despite a sense that the economic downturn was
bottoming out. In China, although demand was solid, performance weakened due to
the absence of the temporary rise in sales in the same period of the previous
fiscal year. Elsewhere in Asia, despite solid demand in emerging markets
overall, demand weakened due to factors including restrained capital investment
in the semiconductor and other industries in South Korea. As a result, overseas
sales for the nine months ended December 31, 2012 decreased compared with the
same period of the previous fiscal year. 

Segment Profit

Factors such as reduced sales due to the depreciation of the euro and a reaction
to a temporary increase in sales in the same period of fiscal 2011, as well as
proactive investments, resulted in a decrease in segment profit compared with
the same period of the previous fiscal year.

 EMC (Electronic and Mechanical Components Business)                                       
 Millions of yen, except percentages                                                       
                                       Nine months ended     Nine months ended     Change  
                                       December 31, 2011     December 31, 2012             
 Sales to external         Japan       18,117                19,650                +8.5%   
 customers                                                                                 
                           Overseas    43,861                42,296                -3.6%   
                           Total       61,978                61,946                -0.1%   
 Segment profit                        5,901                 4,496                 -23.8%  
                                                                                           


Sales in Japan

In consumer industries, demand grew in the office equipment field and mobile
industries from the second half, and demand in infrastructure-related fields was
firm. As a result, sales in Japan for the nine months ended December 31, 2012
increased compared with the same period of the previous fiscal year. 

Overseas Sales

In the Americas, demand increased in the automotive industry, but decreased in
consumer industries. Demand decreased in Europe due to ongoing economic
weakness. In China and elsewhere in Asia, slack exports due to the weak economy
in Europe and the depreciation of the euro caused sales to remain essentially
unchanged. Consequently, overseas sales for the nine months ended December 31,
2012 decreased compared with the same period of the previous fiscal year. 

Segment Profit

Factors including the depreciation of the euro and a continuing decrease in
sales within the Omron Group caused segment profit to decrease compared with the
same period of the previous fiscal year.

 AEC (Automotive Electronic Components Business)                                            
 Millions of yen, except percentages                                                        
                                       Nine months ended     Nine months ended     Change   
                                       December 31, 2011     December 31, 2012              
 Sales to external         Japan       20,368                23,290                +14.3%   
 customers                                                                                  
                           Overseas    40,870                48,370                +18.4%   
                           Total       61,238                71,660                +17.0%   
 Segment profit                        1,847                 4,053                 +119.4%  
                                                                                            


Sales in Japan

Automotive demand was robust due to government support measures for the purchase
of eco cars (extension of tax breaks, reintroduction of subsidies) and strong
sales of small cars. Sales in Japan for the nine months ended December 31, 2012
increased compared with the same period of the previous fiscal year, partially
reflecting the temporary decrease in sales in the same period of fiscal 2011 due
to the Great East Japan Earthquake and floods in Thailand. 

Overseas Sales

Demand for certain components decreased due to the impact of austerity policies
and the deteriorating labor environment in European economies as a result of
financial instability and a sharp drop in sales for Japanese automobile
manufacturers in China. Overall, however, demand was strong among overseas
automobile manufacturers and in emerging markets. As a result, overseas sales
for the nine months ended December 31, 2012 increased compared with the same
period of the previous fiscal year, due in part to the rebound from the
temporary decrease in sales caused by the impact of floods in Thailand. 

Segment Profit

Factors such as increased sales and the absence of the temporary production
adjustments carried out in the same period of fiscal 2011 due to the impact of
the Great East Japan Earthquake and floods in Thailand resulted in an increase
in segment profit compared with the same period of the previous fiscal year.

 SSB (Social Systems, Solutions and Service Business)                                       
 Millions of yen, except percentages                                                        
                                Nine months ended         Nine months ended         Change  
                                December 31, 2011         December 31, 2012                 
 Sales to external customers    32,985                    36,805                    +11.6%  
 Segment profit (loss)          (3,804      )             (2,588      )             -       
                                                                                            


Public Transportation Systems Business Sales

Passenger revenues of railway companies rebounded compared with the same period
of the previous fiscal year due to factors including the absence of the impact
of the Great East Japan Earthquake, and investment in equipment renewal was
firm. As a result, there was an increase in deliveries of ticket vending
machines, passenger gates and other equipment and related installation work, and
sales for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year. In addition, there is an increasing
need for platform safety and security equipment, such as gates to prevent
passengers from falling onto tracks. 

Traffic and Road Management Systems Business and Other Sales

In the traffic and road management systems business, sales for the nine months
ended December 31, 2012 were flat, partially due to the absence of the temporary
reconstruction demand in the same period of the previous fiscal year resulting
from the impact of the Great East Japan Earthquake. In the environmental
solutions business, solar power generation products sold strongly as a result of
a focus on launching new equipment models and expanding sales channels, backed
by the announcement of the introduction of a system in Japan for purchasing the
total amount of renewable energy generated and the expansion of a tax system to
promote environment-related investment. 

Segment Profit

Segment loss decreased compared with the same period of the previous fiscal year
because of increased sales.

 HCB (Healthcare Business)                                                                 
 Millions of yen, except percentages                                                       
                                       Nine months ended     Nine months ended     Change  
                                       December 31, 2011     December 31, 2012             
 Sales to external         Japan       19,878                21,699                +9.2%   
 customers                                                                                 
                           Overseas    26,424                30,280                +14.6%  
                           Total       46,302                51,979                +12.3%  
 Segment profit                        2,940                 3,733                 +27.0%  
                                                                                           


Sales in Japan

Sales of healthcare products for household use were firm, with robust sales of
new products (body composition monitors, digital thermometers for women,
electric toothbrushes, massagers, sleep time monitors, sleep monitors) and new
and preexisting digital blood pressure monitors, HCB's core product. On the
other hand, sales of equipment for use in medical institutions were flat, as
medical institutions maintained a careful stance toward investment. Sales in
Japan for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year, reflecting the temporary decrease in
sales in the same period of fiscal 2011 due to the Great East Japan Earthquake. 

Overseas Sales

Although demand in the markets of Southern and Eastern Europe remained weak amid
the gradual easing of financial instability, demand for healthcare equipment
continued to rise in emerging markets such as Russia, China and Southeast Asia.
As a result, overseas sales for the nine months ended December 31, 2012 were
strong overall. 

Segment Profit

Despite factors including the depreciation of the euro, segment profit increased
compared with the same period of the previous fiscal year due to the increase in
sales and other factors.

 Other                                                                                       
 Millions of yen, except percentages                                                         
                                Nine months ended         Nine months ended     Change       
                                December 31, 2011         December 31, 2012                  
 Sales to external customers    39,536                    44,174                +11.7  %     
 Segment profit (loss)          (2,932      )             1,589                        -     


Businesses in the "Other" segment are primarily responsible for exploring and
nurturing new business fields and nurturing/reinforcing businesses not handled
by other internal companies. 

Environmental Solutions Business Sales

Sales for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year due to factors including increased
demand for solar power condensers (energy-generation business) amid rising
expectations for solar power generation as an alternative source of power. 

Electronic Systems & Equipments Division Sales

Although demand for uninterruptible power supplies was firm in response to
concerns about the electrical supply, sales of industrial-use computers and
development and contract manufacturing of electronic devices weakened. As a
result, sales for the nine months ended December 31, 2012 decreased compared
with the same period of the previous fiscal year. 

Micro Devices Business Sales

Although demand for MEMS microphone chips and custom integrated circuits for
industrial use rose sharply, sales for the nine months ended December 31, 2012
decreased compared with the same period of the previous fiscal year due to a
rapid drop in demand for contract semiconductor manufacturing. 

Backlight Business Sales

Due to the launch of a large-scale project amid a robust smartphone market,
sales for the nine months ended December 31, 2012 increased compared with the
same period of the previous fiscal year. 

Segment Profit

Segment profit increased compared with the same period of the previous fiscal
year because of higher sales in the environmental solutions business. 

2.Consolidated Financial Position and Cash Flows

Total assets as of December 31, 2012 increased JPY 22,150 million compared with
the end of the previous fiscal year to JPY 559,473 million, due to an increase
in inventories and other factors. 

Total liabilities decreased JPY 5,739 million compared with the end of the
previous fiscal year to JPY 209,904 million, largely reflecting a decrease in
notes and accounts payable - trade. Net assets increased JPY 27,889 million from
the end of the previous fiscal year to JPY 349,569 million due to a change in
foreign currency translation adjustments. The shareholders' equity ratio was
62.2 percent, compared with 59.7 percent at the end of the previous fiscal year.


Net cash provided by operating activities for the nine months ended December 31,
2012 was JPY 31,932 million (an increase of JPY 18,949 million compared with the
same period of the previous fiscal year) due to collection of receivables in
addition to net income. Net cash used in investing activities was JPY 20,421
million (an increase in cash used of JPY 2,733 million compared with the same
period of the previous fiscal year) due to capital investment in production and
other facilities. Net cash used in financing activities was JPY 4,319 million (a
decrease in cash used of JPY 18,179 million compared with the same period of the
previous fiscal year) due to dividends paid and other factors. 

As a result, the balance of cash and cash equivalents at December 31, 2012 was
JPY 54,726 million, an increase of JPY 9,469 million from the end of the
previous fiscal year.

                                                                                         
 Consolidated Financial Position                                                         
                                   Millions of yen - except percentages                  
                                   As of                             As of               
                                   December 31, 2012                 
March 31, 2012     
 Total assets                      559,473                           537,323             
 Net assets                        349,569                           321,680             
 Shareholders' equity              347,900                           320,840             
 Shareholders' equity ratio (%)    62.2                              59.7                
                                                                                         


 Consolidated Cash Flows                                                                                                        
                                                              Millions of yen                                                   
                                                Nine months ended               Nine months ended           Period-on-          
                                                December 31, 2011               December 31, 2012           period change       
 Net cash provided by operating activities      12,983                          31,932                      +18,949             
 Net cash used in investing activities          (17,688              )          (20,421     )               -2,733              
 Net cash used in financing activities          (22,498              )          (4,319      )               +18,179             
 Cash and cash equivalents at end of period     44,699                          54,726                      +10,027             
                                                                                                                                


 3.Dividends                                                                                                         
                                                     Year ended            Year ending           Year ending         
                                                     March 31, 2012        March 31, 2013        March 31, 2013      
                                                                                                 (projected)         
 Dividends     1st quarter dividend (JPY)            -                     -                                         
 per share                                                                                                           
               2nd quarter dividend (JPY)            JPY14.00              JPY14.00                                  
               3rd quarter dividend (JPY)            -                     -                                         
               Year-end dividend (JPY)               JPY14.00                                    JPY23.00            
               Total dividends for the year (JPY)    JPY28.00                                    JPY37.00            
                                                                                                                     


4.Fiscal 2012 Consolidated Performance Forecast

There is no change to the forecast for the fiscal year ending March 31, 2013, as
announced on April 26, 2012. The assumed exchange rates for the fourth quarter
in the performance forecasts for the fiscal year are USD 1 = JPY 89 and EUR 1 =
JPY 118. 

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.

                                                                                                                 
 Projected Results for the Fiscal Year Ending March 31, 2013 (April 1, 2012 - March 31, 2013)                    
                                                                                                                 
 Millions of yen - except per share data and percentages                                                         
                                                                                                                 
                                                            Year ending March 31, 2013           Change (%)      
 Net sales                                                  650,000                              4.9             
 Operating income                                           46,000                               14.6            
 Income before income taxes                                 43,000                               28.2            
 Net income attributable to shareholders                    28,500                               73.9            
 Net income per share attributable to shareholders (JPY)    129.47                                               
 Note: Revisions since the most recently announced results forecast: No                                          
                                                                                                                 


About OMRON

Headquartered in Kyoto, Japan, OMRON Corporation is a global leader in the field
of automation. Established in 1933, Omron has more than 36,000 employees in over
35 countries working to provide products and services to customers in a variety
of fields including industrial automation, electronic components, social
systems, healthcare, and the environment. The company has regional head offices
in Singapore (Asia Pacific), Beijing (Greater China), Amsterdam (Europe, Africa,
and the Middle East), Chicago (the Americas), Gurgaon (India), and Sao Paulo
(Brazil). For more information, visit OMRON's website at http://www.omron.com/

OMRON Corporation
Takayoshi Oue, +81-75-344-7070
Executive Officer, Senior General Manager,
Accounting and Finance Center


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