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Last updated: Feb 3, 2012
| (Outlook for the IT and AT Businesses) |
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What are the demand trends for the IT, AT, and Medical fields? |
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In the AT field, demand was less than anticipated in the October–December quarter due to the decline in automobile production caused by the recessive business conditions in Europe and the disrupted parts supply caused by the flooding in Thailand. We expect domestic auto production to recover in January–March and plan to fully meet the demand. In the IT field, for the time being, we think overall demand will remain at the same level as in the third quarter. Demand has been relatively strong for smartphone and tablet computers, and we are aiming to expand sales in that segment. In the Medical field, demand for influenza diagnostic drugs was less than we had anticipated for the third quarter. We also expected growing sales for diagnostic equipment in the third quarter but the shipment delays after the earthquake limited the sales result. We plan to fully meet demand in the fourth quarter.
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What is the status of the capacity expansion investment for ITO films? |
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We are enhancing our production capabilities for static capacitance films, for which we expect demand to grow. We plan to commence operations in the fourth quarter or in the next fiscal year.
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| (HPP Company Second Half Performance) |
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Why were the HPP Company's second half sales and operating income forecasts lowered? |
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The main reasons were the weaker-than-expected demand in the AT and IT businesses.
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Sharp profit growth from the third quarter to the fourth quarter is projected for the HPP Company. Is the target attainable? |
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We plan to meet the target by fully capturing the demand growth in the AT field from the recovery in domestic auto production and, in the Medical field, by meeting demand for influenza diagnostic drugs, improving delivery of diagnostic equipment, and expanding sales of reagents. In addition, we will step up our efforts to reduce fixed cost in the fourth quarter.
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| (Status of the Pipeline Renewal Business) |
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What is the status of the pipeline renewal business given the number of postponed project orders? |
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The recessive business conditions in Europe and around the world are causing project orders for public works to be postponed. We believe the active use of our directly affiliated construction companies, including the recently acquired construction company in Eastern Europe, will lead to winning project orders.
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| (Housing Market Outlook) |
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What is the outlook for the housing market in the fourth quarter? |
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Stimulus measures are being extended or reinstated and the number of visitors to showrooms began exceeding previous-year levels about midway through the third quarter. We think these suggest that consumer sentiment for purchasing homes is improving.
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What is the development status of the solar housing with storage batteries planned to be launched next fiscal year? How will your homes differ from similar homes being developed by other companies? |
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We are constructing model homes and conducting demonstration tests in all of the electric power districts in Japan. We are also working to simplify the certification process and lower the sales prices and construction costs with the aim of providing solar power storage batteries in all of our homes. We aim to differentiate our homes by appealing to the economic advantages of our large-capacity solar power systems, which other companies are hard-pressed to match.
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| (Share Buyback Program and Dividend Distribution) |
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The planned share buyback program will increase the company's treasury stock, but do you plan to cancel the shares? |
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We currently keep a portion for stock options and will retain the remainder as treasury stock for the time being. The volume of treasury stock is increasing, retiring shares will also be considered in the future.
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Are you planning to continue implementing share buyback programs? |
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While taking into account the balance between the trend in the share value and our capital needs, we will be flexible about considering reacquiring company shares to improve our capital efficiency and as a supplemental method to our long-term dividend distribution policy for providing return to shareholders.
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Will the dividend payment be increased if you achieve the 28 billion yen net income target? |
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If we reach the target, we will consider that option and make an announcement. The dividend payments are set based on our performance results and our target consolidated dividend payout ratio of 30%.
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Disclaimer
This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.
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