The following is a summary of the TDK Corporation (TTDKY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• TDK Corporation experienced a decrease in sales by 3.5% year-on-year due to slower demand in the ICT and HDD market.

• Despite sales decline, the company's operating income increased by 2.4% year-on-year, notable due to an increase in automotive market sales.

• Net sales were reported at ¥2,103.9 billion, down by ¥76.9 billion from the previous year.

• Passive Components sales decreased by 2.3% year-on-year, while Sensor Application Products business reported a 6.5% year-on-year increase in sales.

• Despite increase in sales, operating income for Sensor Application Products declined by 43.7%. Over the year, The Magnetic Application Products business also saw sales decline and reported losses in operating income.

• Energy Application Products reported a positive trend with net sales at ¥1,121.7 billion and a significant 32.7% increase in operating income.

Business Progress:

• Profits were secured in small rechargeable batteries for the ICT market despite sales decrease.

• The downturn in HDD market showed signs of improvements by the third quarter.

• TDK Corporation forecasts growth in sales for the Passive Components and Sensor Application Products segments but sees a potential for decreased to slight increase for the Magnetic Application Products in fiscal year 2025.

• A new financial target was introduced focusing on the Return on Invested Capital (ROIC).

• TDK Corporation plans to increase investment in high-value added products, such as silicon anode and lithium batteries, TMR sensors, and MEMS microphones.

More details: TDK (ADR) IR

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