Minebea Reports First Quarter 2008 Results

Minebea Reports First Quarter 2008 Results Minebea Co. Ltd. (Japan; TSE:6479) reported financial results for fiscal first quarter 2008, ended June 30, 2007. First quarter sales were ¥81.8 billion (USD $708 million), up just 2% from 2007's ¥80.2 billion ($694 million). Net income dipped in the quarter, falling 4.7% to ¥3.1 billion ($27 million) from 2007's ¥3.3 billion ($29 million). Minebea said geographically, the domestic Japanese economy expanded moderately, supported by increased capital investments and exports, with overall corporate earnings remaining at a high level. The U.S. economy remained relatively stable, while Europe remained strong based on internal growth. Asian markets continued strong, led by China. Given those economic circumstances, Minebea said it strove to, "implement sweeping cost reduction measures, develop new technologies and high value-added products, and promote sales expansion activities, in order to improve earnings. Minebea is an industrial manufacturing and distribution conglomerate, made up of 47 companies operating in two business units -- Machined Components and Electronic Devices and Components. We will focus on the Machined Components Business, where bearing manufacturing and sales operations are contained. Ball bearings are the division's primary product, but it also includes mechanical components such as rod-end bearings for aircraft and aerospace, and pivot assemblies for hard disk drives. The business also produces screws for automotive aerospace, and defense-related devices and equipment. Minebea's bearing manufacturing operations are Minebea Co. Ltd., New Hampshire Ball Bearings Inc., NMB-Minebea UK Ltd., NMB Singapore Ltd., Pelmec Industries Ltd., NMB Thai Ltd., Pelmec Thai Ltd., NMB Hi-Tech Bearings Ltd., and Minebea Electronics & Hi-Tech Components Ltd. Sales of ball bearings to automotive and information systems OEMs was up from first quarter 2007 due to "vigorous" sales efforts. Sales of rod end bearings to the aerospace industry were up, particularly into the U.S. and Europe. Disk drive pivot assembly sales were also up. Machined Components sales in first quarter 2008 were ¥35.5 billion ($307 million), up 6.7% from ¥33.3 billion ($288 million) in 2007. In North America, Minebea indicated strength in both new orders and sales of American-made ball bearings and rod-end bearings into the aircraft market. In Europe, sales of ball bearings, rod-end bearings and other products were firm in the face of "moderate" economic growth. Although Minebea does not break out its segment inventory levels, production in the Machined Components business was essentially even with sales, at ¥35.5 billion. The division's order backlog at the end of the quarter was ¥55.5 billion, from ¥48.8 billion at the end of first quarter 2007.