|
Consolidated Forecast for the Year Ending
December 31, 2012 (January 1, 2012 - December 31, 2012) by Horiba analysts
(Percentages represent changes from the same period in the previous year)
| Net Sales | Operating Income | Ordinary Income | Net Income | |
| First Half | -2.6% | -26.7% | -29.5% | -29.9% |
| Full Year | 0.0% | -16.1% | -17.9% | -13.4% |
Outlook for the Year Ending December 31, 2012
The outlook for the global economy is extremely uncertain, with worries that a delay in solving Europe’s
sovereign crisis will slow down the world economy in 2012. The U.S. is expected to record moderate growth
with little improvement in the housing market and employment, while the European economy is likely to
remain sluggish. Emerging countries such as China and India are projected to maintain high economic
growth albeit at a slower rate than in 2011 due to some deceleration in exports and investments. Japan’s
economy is projected to pick up gradually from the middle of 2012, partly due to rising demand for
reconstruction from the Great East Japan Earthquake disaster. Against this background, HORIBA’s
forecasts for fiscal 2012 are shown below.
Our assumed foreign exchange rates are 75 yen against the U.S. dollar (vs. 79.80 yen in fiscal 2011) and
100 yen against the euro (vs. 111.13 yen in fiscal 2011).
Net sales of 123,500 million yen, up 0.0% y-o-y
Net sales are expected to increase by 43 million yen from the previous year to 123,500 million yen.
The Automotive Test Systems segment is expecting a moderate recovery in capital spending and
development investment by automakers, the segment’s major customers, will lead to growth in sales of
engine emission measurement systems, HORIBA’s major product, and in sales in the MCT (Mechatronics)
business. On the other hand, the HIT business, which handles vehicle driving and operating management
system, is forecast to record a decrease in sales due to a tough comparison with the previous year, when a
large transaction was recorded.
The Process & Environmental Instruments & Systems segment is anticipating growth in demand for stack
gas analyzers and other products related to environmental regulations. However, segment sales are
projected to decrease as the demand outlook for environmental radiation monitor is uncertain at this
moment.
Medical-Diagnostic Instruments & Systems segment sales are expected to be lower after yen conversion
due to the weaker euro, despite growth in sales of blood cell testing instruments in various countries.
The Semiconductor Instruments & Systems segment anticipates a moderate recovery in demand for silicon
semiconductor manufacturing equipment. However, a recovery in demand for photovoltaics and
light-emitting diodes (LEDs) is uncertain, while sales prices are likely to drop due to the strong yen and
intensified competition.
Scientific Instruments & Systems segment sales are expected to be lower after yen conversion due to the
weaker euro.
Operating income of 12,500 million yen, down 16.1% y-o-y
Operating income is likely to decrease by 2,406 million yen from the previous year to 12,500 million yen.
In the Automotive Test Systems segment, the appreciation of the yen is expected to lower the profitability of
emission measurement systems, HORIBA’s major product, while the MCT business is projected to improve
profitability due to last year’s reorganization and continued cost reduction efforts. In addition, the demand
outlook for environmental radiation monitor is uncertain, and the Semiconductor Instruments & Systems
segment is projecting a decrease in sales and the appreciation of yen look to deteriorate the profitability.
Ordinary income of 12,000 million yen, down 17.9% y-o-y
Ordinary income is expected to decrease by 2,611 million yen from the previous year to 12,000 million yen.
Our forecasts incorporate a non-operating loss of 500 million yen on a net basis, assuming foreign
exchange losses and some uncertain non-operating expenses.
6 HORIBA, Ltd. (Consolidated)
Net income of 7,500 million yen, down 13.4% y-o-y
Assuming the generation of some extraordinary losses, a net extraordinary loss of 600 million yen has been
incorporated in our forecasts. As a result, net income is forecast to decrease by 1,164 million yen from the
previous year to 7,500 million yen.
(Note) The above forecasts have been made on the basis of information available as of February 14, 2012,
but owing to the existence of various uncertain elements, it is possible that actual performance will vary
considerably from those forecasts.