Murata 'MetroCirc' Adopted by iPhone X | Production Delay Affects Revenue

Murata Mfg., the leading manufacturer of multilayer ceramic capacitor capacitors, announced its financial statements in the previous year (2017, April 2017 - March 2018) after the Japanese stock exchange on the 27th: China's smartphone shipments decreased However, due to the evolution of intelligent machines, the number of parts per vehicle has increased, coupled with strong demand for automobiles, and the acquisition of Sony’s lithium-ion battery business has boosted consolidated revenue by 20.8% to 13.718 trillion yen. Set a record high for history.

However, due to the delay in mass production of the new product resin multilayer substrate 'MetroCirc', which is technically difficult, leading to an increase in manufacturing costs and the depreciation expense incurred in order to increase the capacity of new products, the investment-related expenses have increased, dragging down Murata’s profit in the previous year. 19.4% decreased to 16.21 billion yen, and consolidated net profit contracted by 6.4% to 148 billion yen.

'MetroCirc' is only one-fifth the thickness of the current substrate and is free to bend and form. It is reportedly used by Apple iPhone X.

In the previous year, sales of Murata Capabilities Division (based on MLCC) increased by 21.7% year-on-year to RMB449.8 billion; sales of piezoelectric products (including surface filters, ceramic filters, etc.) decreased by 10.6% to RMB 152 billion. Sales of other components (including inductors, connectors, sensors, etc.) surged 45.0% to 322.2 billion yen; sales of communications modules grew 21.3% to 395 billion yen.

Looking ahead to this year's (2018, April 2018-2019) results, Murata pointed out that the demand for capacitance-centered electronic components will continue to be strong. It is estimated that consolidated revenue will increase by 14.8% year-on-year to 1,5,750 points. Billion Yen, will exceed the 1.5 trillion yen mark for the first time, record high record; In addition, the depreciation expense increase method will reduce the depreciation expense for 2018 Yen 67.5 billion Yen, so the combined profit forecast will increase substantially. 50% (48.0% growth) to 240 billion yen, and the combined net profit will increase by 23.2% to 180 billion yen.

Murata also pointed out that in order to expand new products and demanding product capacity, the amount of equipment investment this year will increase by 10.9% year-on-year to 340 billion yen.

Murata's forecast for this year's fiscal year is based on the trial value of one dollar against 105 yen and one euro against 130 yen.

The Nikkei News pointed out that Murata’s estimated profitability is higher than the estimated market of 217.1 billion yen. However, if the depreciation deduction is deducted, it is substantially lower than market expectations.