Ibiden Revises Financial Forecasts

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Based on the recent trend of its performance, Japanese PCB firm Ibiden Co. Ltd has revised its financial results forecast announced on April 30, 2015 as follows: net sales of 318.3 billion yen ($2.82 billion), down by 3.5% from the previous forecast of 330 billion yen ($2.925 billion); operating income of 20.8 billion yen ($184.5 million ), down by 23% from the previous forecast of 27 billion yen ($239.5 million); and ordinary income of 19.8 billion yen ($175.6 million), down by 22.4% from the previous forecast of 25.5 billion yen ($226.2 million).

Additionally, the company will post an extraordinary loss for the fiscal year ending March 31, 2016 (April 1, 2015 to March 31, 2016).

The business environment surrounding Ibiden remained generally firm up to the end of the second quarter; however, going into the third quarter, the company experienced rapid deceleration in its Electronics Operation against the backdrop of factors such as the further slowdown in the PC market and the sluggish growth in smartphone market. Moreover, with the further escalation of competition between companies and the like, the electronics market environment is assumed to continue being subject to harsh conditions and opacity in terms its future direction.

As a result of these changes in the electronics market environment along with the projected loss on impairment of fixed assets, sales and profits are forecasted to fall short of assumed figures.

Meanwhile, reflecting the market environment changes in the electronics business, it is forecasted that there are some manufacturing facilities that will no longer be used. This means that for the consolidated settlement of accounts for the entire fiscal year ending March 31, 2016, the subject fixed assets are estimated to be worth about 10 billion yen ($88.67 million). Ibiden plans to record the figure as a loss on impairment and loss on retirement of fixed assets.