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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