Welcome!

News Feed Item

Investment Bridge Announces Investment Opinion: Bridge Report on Ferrotec Corporation Issued: Large Losses Incurred in First Half, Full Year FY3/13 Earnings Revised Down by Large Margin

Investment Bridge, one of Japan's leading IR services companies, has released a "Bridge Report" on Ferrotec Corporation (JASDAQ:6890) reviewing first half earnings results and the downward revision to fiscal year March 2013 earnings estimates.

Report Highlights

  • In the first half of FY3/13, sales fell by 43.9% year-over-year and a net loss of JPY6.15 billion was recorded on the back of a sudden and rapid deterioration in the photovoltaic related business, and weak sales of equipment related and electronic device business segments. Also large one off losses arising from business restructuring contributed to the large net loss.
  • Full year FY3/13 estimates have been revised down to reflect the weaker than expected first half and severe operating conditions, and now call for sales to fall by 35.1% year-over-year and a net loss of JPY8.3 billion.
  • The Bridge Report calls attention to Ferrotec's efforts to bring about a recovery in profitability from FY3/14 through the implementation of a "business restructuring plan," which calls for reductions in the scale of the photovoltaic business and other measures.

Ferrotec Corporation manufactures and sells single and multi crystal silicon ingot manufacturing equipment and other products in the photovoltaic related segment. Ferrotec also supplies various parts, consumables and equipments for semiconductor, flat panel display (FPD), and LED applications in equipment related segment, and various thermoelectric temperature controllers for automobile seat and home appliances in electronic device segment.

First half FY3/13 earnings deteriorated rapidly due to weak demand for products of all business segments and a particularly large decline in sales of the photovoltaic related business segment of 57.8% year-over-year resulting from reductions in government support measures in Europe and a deterioration in the overall market conditions for photovoltaic applications due to oversupply from manufacturers in China. Sales of the equipment related and electronic device segments also fell by large margins of 35.3% and 31.8% year-over-year respectively. Uncovered costs resulting from the large 43.9% year-over-year decline in total sales, and valuation and impairment accounting losses contributed to losses being seen at the operating, ordinary, and net income levels of JPY2.15, JPY2.71, and JPY6.15 billion respectively during the first half.

Full year FY3/13 earnings have been revised down by large margins to reflect the weaker first half earnings and now call for sales to decline by 35.1% year-over-year to JPY39.0 billion, and losses at the operating, ordinary, and net levels of JPY3.4, JPY4.4, and JPY8.3 billion respectively.

The Bridge Report highlights the business restructuring plan's goals of halting losses currently being seen and bringing about a recovery in profitability during the next fiscal year. Ferrotec will pursue the various measures in this plan with the goal of bringing about a "V" shaped recovery to earnings in the coming fiscal year March 2014.

To view the full report, please go to the website at the URL listed below.
http://www.bridge-salon.jp/report_bridge/archives/eng/6890/20121227.html

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and G...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....