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Precision Products

Precision Products Sales by Segment 9.0%

In the Precision Products Segment, sales of non-wristwatch components increased, but sales of wristwatch components declined due to a drop in the first half of the year. We are bolstering the segment's manufacturing capacity at the three overseas bases, with the aim of expanding sales.

Business Environment and Results in Fiscal 2014

PRECISION PRODUCTS SEGMENT SALES

The products in this segment are divided into two main areas: wristwatch components, a business the Company has been involved in since it was founded, and non-wristwatch precision components (also referred to as non-wristwatch components) such as automobile-related components and components for hard disk drives (HDDs).

Sales of wristwatch components recovered in the second half of the year because wristwatch makers implemented inventory adjustments, but sales declined 17.5% year on year to ¥1,363 million (US$13,363 thousand).

In contrast, non-wristwatch components saw sales increase due to strong sales of automobile-related components in China in addition to a significant rise in sales of air conditioning-related components for the Chinese market. As a result, non-wristwatch components sales increased 11.4% year on year to ¥2,528 million (US$24,784 thousand), and accounted for 65.0% of total segment sales.

Consequently, total segment sales decreased 0.8% to ¥3,891 million (US$38,147 thousand). As a result of the sales decrease and other factors, the Precision Products Segment posted operating income of ¥140 million (US$1,373 thousand), representing a sizeable decline.

Outlook for Fiscal 2015

Wrist watch Components

Sales of wristwatch components are expected to increase mainly because of the recovery in demand in the market. Sales in the non-wristwatch components sector are expected to expand as we strengthen our production capabilities at our three bases in Dalian and Shanghai in China, and Ayutthaya in Thailand.

For the year ending February 28, 2015, Star Micronics is projecting net sales for the segment of ¥4,260 million, up 9.5% year on year, and a surge of 257.1% in operating income to ¥500 million.

  • No operating income ratio was calculated due to operating losses reported.

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