Japan's seven top electronic component makers have announced their earnings outlooks for the year ending March 2015. The previous fiscal year was mostly a good one for these makers, and six of the seven are predicting the current fiscal year will be good as well.
Most of this is thanks to solid demand in electronic parts used in cars and smartphones.
Six companies, the exception being Rohm Co., expect year-on-year increases in their group net profits for fiscal 2014. TDK Corp.'s net profit is expected to increase 110%, while the other five companies forecast 9-19% rises in profit.
The effects of the yen's fall appear to have run their course, and all seven companies are aiming to receive more orders by touting innovative, space-saving technologies to automakers and smartphone manufacturers. Profit growth is expected to be particularly strong in sales of car-related parts.
Rohm said Thursday that its group net profit for fiscal 2014 will be 21 billion yen ($203.1 million), down 35% on the year. Much of this decline is due to the faded effects of the weaker yen. The company booked its foreign exchange gains of 10 billion yen as non-operating income for the previous fiscal year. It predicts its operating profit will rise 8% on the year to 25.5 billion yen, thanks to solid demand in its core semiconductor business.
President and CEO Satoshi Sawamura says the company's profits from electronic parts for cars and other devices will grow, as more electronic components are being used in such products.
