Presentation Q&A

Q: Which is the main reason of the downward revision of the projected sales for the first half of this fiscal year, demand decrease or demand push-back to the second half?

A: Some sales for smartphones have been pushed back to the second half. Also, demand for components used in PCs and AV devices is slightly weaker than what we originally estimated.

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A: Those costs are well controlled under the initial estimate.

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A: We expect order intake to start to pick up for smartphones and Windows 8 PCs from sometime in August or September.

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A: The operating rate was 96% in the first quarter. It is expected to rise to 100% in the second quarter. Note that both rates are based on 20 operating days per month.

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A: This is because we have spent up-front capital expenditures and expenses for production jigs and tools for capacity increase and a shift to overseas production.

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A: We project 5% decline on average from the original forecast.

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A: It depends on the market situation but we are planning to maintain the current level of R&D expenses.

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A: Depreciation expenses rose more than expected because we have increased production capacity earlier than the initial plan. Other reasons are that we are concurrently increasing capacity both in Japan and abroad and that we have added start-up costs to launch new products.

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A: Prices have been falling more than we originally expected. We are planning to maintain value added through the improvement in product mixes because sales of state-of-the-art components are increasing for smartphones and tablet devices.

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This Q&A contains forward-looking statements concerning Murata Manufacturing Co., Ltd. and its group companies' projections, plans, policies, strategies, schedules, and decisions. These forward-looking statements are not historical facts; rather, they represent the assumptions of the Murata Group (the "Group") based on information currently available and certain assumptions we deem as reasonable. Actual results may differ materially from expectations due to various risks and uncertainties. Readers are therefore requested not to rely on these forward-looking statements as the sole basis for evaluating the Group. The Company has no obligation to revise any of the forward-looking statements as a result of new information, future events or otherwise.

Risks and uncertainties that may affect actual results include, but are not limited to, the following:

  1. economic conditions of the Company's business environment, and trends, supply-demand balance, and price fluctuations in the markets for electronic devices and components
  2. price fluctuations and insufficient supply of raw materials
  3. exchange rate fluctuations
  4. the Group's ability to provide a stable supply of new products that are compatible with the rapid technical innovation of the electronic components market and to continue to design and develop products and services that satisfy customers
  5. changes in the market value of the Group's financial assets
  6. drastic legal, political, and social changes in the Group's business environment; and
  7. other uncertainties and contingencies.
The Company undertakes no obligation to publicly update any forward-looking statements included in this Q&A.