Analysis of operation results
as of March 31, 2011
Overview of performance for the consolidated fiscal year under review
Although the Japanese economy shows signs of recovery in employment and income environment with an increase in exports and production during the fiscal year under review, the impact of the Great East Japan Earthquake which occurred on March 11th 2011 was enormous and the future of the Japanese economy became uncertain.
In the medical equipment industry, the remuneration for medical services was positively changed for the first time in ten years last spring, and the business environment surrounding medical institutions is expected to improve.
Under such economic circumstances, the Group posted a consolidated net sale of 90,169 million yen (up 2.3% year-on-year) for the consolidated fiscal year under review. With regard to incomes, consolidated operating income totaled 8,022 million yen (up 14.6% year-on-year) and consolidated ordinary income totaled 8,039 million yen (up 14.7% year-on-year) respectively. Due to the Group appropriate 792 million yen for extraordinary losses related to the Great East Japan Earthquake, a consolidated net income were 4,111 million yen (up 17.5% year-on-year).
Overview of performance for the consolidated fiscal year under review by segment
- Physiological diagnostic equipment segment
Sales of electrocardiographs, vascular screening systems and blood cell counters increased. But the sales of ultrasound diagnostic systems declined.
Sales of database system products increased due to the recovery of capital investment of the hospitals.
As a result, consolidated net sales were 25,661 million yen (up 4.2% year-on-year). - Patient monitoring equipment segment
During the final quarter of the consolidated term, sales increased domestically. On the other hand, sales overseas decreased.
As a result, consolidated net sales were 8,010 million yen (up 14.1% year-on-year). - Medical treatment equipment segment
The business of renting medical equipment for home treatment continued to increase. But the sales of pacemakers and catheters decreased due to the revisions of the official reimbursement prices. Termination of distribution agreement for intravascular ultrasound imaging diagnostic devices affected sales of catheters after November 2010.
The sales of ventilators decreased due to the backlash of demand for the new type of influenza during previous fiscal year.
Sales of Automated External Defibrillators (AEDs) declined, affected by the economic stagnation.
As a result, consolidated net sales were 36,771 million yen (down 2.1% year-on-year). - Consumables and other products segment
In this segment, recording paper, disposable electrodes, and consumables used for devices handled by the above segments, as well as maintenance and repair services are included mainly.
Consolidated net sales for this segment were 19,727 million yen (up 4.1% year-on-year).
Outlook for fiscal year ending March 2012
Outlook for fiscal year ending March 2012 is uncertain due to the Great East Japan Earthquake.
Group member Fukuda Denshi Tagajo Laboratory was affected by the earthquake and the tsunami and operations remain suspended as of the present.
In addition, it is possible that some medical devices manufactured by Fukuda Denshi at the Shiroi Factory will be subject to future delivery delays or supply disruptions for a period of time due to the damages to the companies that supply us with certain electronic components and the predicted power consumption predicament this summer.
In consideration of such circumstances, the Group expects consolidated net sales of 88,800 million yen, consolidated operating income of 7,000 million yen, consolidated ordinary income of 7,000 million yen, and consolidated net income of 3,500 million yen for the fiscal year ending March 2012.
