Less orders, lower prices! Taiyo Yuden, a major Japanese MLCC manufacturer, saw its net profit plumm
According to Taiwanese media MoneyDJ, due to the decrease in orders and falling prices, Taiyo Yuden, a major Japanese MLCC manufacturer, fell into a loss last quarter, and its net profit plummeted by 90%, and its financial forecast was worse than market expectations.On August 3, Taiyo Yuden announced its financial report for the previous quarter (April-June 2023). Although benefited from the depreciation of the yen, due to the decrease in orders and the drop in product prices, the consolidated revenue fell by 11.2% year-on-year to 72.612 billion yen, and the consolidated profit was a loss of 577 million yen (a surplus of 13.142 billion yen in the same period last year). For the second consecutive quarter, it fell into a loss (4.1 billion yen in the previous quarter), and the consolidated net profit, which shows the final profit situation, plummeted by 92.6% to 903 million yen.
In terms of specific business, the revenue of the capacitor department (MLCC department) fell 13.6% year-on-year to 47.133 billion yen, the revenue of the inductance department fell 6.6% to 10.976 billion yen, and the composite component department (including built-in PCB, surface acoustic wave filter SAW FILTER, power modules, high-frequency modules, etc.) revenue fell 10.7% to 8.182 billion yen, while other departments (including aluminum electrolytic capacitors, energy components, etc.) revenue increased 1.1% to 6.320 billion yen.
Declining orders were one of the factors contributing to the decline in revenue. Taiyo Yuden pointed out that the order value in the quarter fell by 6.3% from the same period last year to 67.1 billion yen, showing a decrease for the eighth consecutive quarter. Among them, the order value of the capacitor sector fell by 6.8% to 43.8 billion yen, the seventh consecutive quarter of decline.
As of the end of June 2023, Taiyo Yuden's backlog of orders was 65.1 billion yen, a decrease of 7.7% compared with the end of the previous quarter. The backlog of orders has decreased for eight consecutive quarters, of which the backlog of capacitor orders is 36.3 billion yen, Compared with the end of the previous quarter, it decreased by 8.6%, and it decreased for eight consecutive quarters.
However, Taiyo Yuden expects demand for smartphones to drive growth in related businesses. It is estimated that the demand from North American smartphone factories will show a seasonal increase starting from this quarter (July-September). Therefore, it is estimated that the revenue of the capacitor department in this quarter will increase by 6-10% compared with the previous quarter, and the revenue of the inductor department will increase by 34% quarter-on-quarter. -38%.
Taiyo Yuden maintains its financial forecast for this year (April 2023-March 2024) unchanged. The consolidated revenue forecast will increase by 0.8% to 322 billion yen, and the consolidated profit forecast will plummet by 53.1%. to 15 billion yen, and the consolidated net profit is expected to plummet by 65.5% to 8 billion yen.
The financial data previously released by Murata Manufacturing, the world's leading MLCC manufacturer, is also relatively sluggish. The sales volume in the last quarter was 367.6 billion yen, a decrease of 16%. Net profit was 50 billion yen, a year-on-year decrease of 34%. The overall order value received was 361 billion yen, a sharp decrease of 15.4% from the same period last year.
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