(TRANSLATION) This brief statement on FY2009 (ending January 31, 2010) is released pursuant to the requirements under the listing rules of, and reported to, the Tokyo Stock Exchange.
1

Brief Statement on Consolidated Financial Results for the Second Quarter
(ended July 31, 2009) of Fiscal Year 2009 (ending January 31, 2010)

September
4,
2009
Company name: SUMCO Corporation TSE First Section
Code: 3436 URL:
http://www.sumcosi.com/
Representative: Yoichi Taguchi, President
Contact person: Hiroshi Shibuya, General Manager, Public Relations & IR Department (Tel: +81-3-5444-3915)
Scheduled date of filing of quarterly security report: September 14, 2009
Scheduled date of commencement of dividend payment: ―
(Amounts smaller than one million yen are rounded down)
1.

Consolidated Business Results for the Second Quarter (February 1, 2009–July 31, 2009) of
Fiscal Year 2009 (ending January 31, 2010)

(1)

Consolidated Financial and Operating Results (fiscal year-to-date)
(Percentages indicate year-on-year changes)

Net sales
Operating profit
Ordinary profit
Net income

(million yen)
(%)
(million yen)
(%)
(million yen)
(%)
(million yen)
(%)
Q2 of FY2009
95,777
― (48,832)
― (61,201)

― (52,921)
―
Q2 of FY2008
227,161 (0.9)
47,284 (31.4)
46,591 (29.6) 25,610 (31.2)
Net income per share for quarter
Diluted net income per share for quarter

(yen) (yen)
Q2 of FY2009
(205.32)
―
Q2 of FY2008
102.36
―

(2) Consolidated Financial Position

Total assets
Net assets
Shareholders’ equity ratio
Net assets per share

(million yen)
(million yen)
(%)
(yen)
Q2 of FY2009
721,415
334,108
43.2
1,210.17
FY2008 733,897
389,521
49.8
1,419.24
(Reference) Shareholders’ equity: Q2 of FY2009: 311,919 million yen; FY2008: 365,807 million yen
2. Dividend Payments

Dividends per share
(Record date)
End of first
End of second
End of third
End of fiscal
Full year
quarter
(yen)
quarter
(yen)
quarter
(yen)
year
(yen)
(yen)
FY2008
― 27.50
― 12.50
40.00
FY2009
― 0.00
FY2009 (Forecast)

― 0.00
0.00
(Note) Revision of dividend forecast in the quarter under review: Yes



SUMCO Corporation: Consolidated Financial Results for Second Quarter of FY2009
2
3. Consolidated Business Results Forecast for Fiscal Year 2009 (ending January 31, 2010)
(Percentages indicate year-on-year changes)

Net sales
Operating profit
Ordinary profit
Net income
Net income
per share

(million yen)
(％)
(million yen)
(％)
(million yen)
(％)
(million yen)
(％)
(yen)
Full year
220,000 (43.9)
(80,000)
―
(110,000)
―
(100,000) ― (387.97)
(Note) Revision of consolidated business results forecast in the quarter under review: Yes

4. Others

(1)

Changes in important subsidiaries during the period under review (changes in specific subsidiaries involving
modifications to the scope of consolidation): No

(2)

Application of simplified or special accounting methods in preparation of quarterly consolidated financial
statements: No

(3)

Changes in accounting principles, procedures, and presentation methods for preparing quarterly consolidated
financial statements (as described in “Modifications to Important Matters Forming the Basis of Preparation of
Quarterly Consolidated Financial Statements”)
[1] Changes associated with revision of accounting standards, etc.: Yes
[2] Changes other than [1]: No
(Note: For details, refer to “4. Others” under “Qualitative Information and Financial Statements” on page 4.)

(4)

Number of issued shares (common stock)
[1] Issued shares as of end of period (including treasury stock):
257,751,739 shares as of end of second quarter of FY2009; 257,751,739 shares as of end of FY2008
[2] Treasury stock as of end of period:
3,525 shares as of end of second quarter of FY2009; 3,113 shares as of end of FY2008
[3] Average number of shares during period (Fiscal year-to-date):
257,748,400 shares during second quarter of FY2009; 250,201,944 shares during second quarter of
FY2008
* Explanations regarding appropriate use of business results forecast and other special instructions:
1.

Business results forecasts for the fiscal year ending January 31, 2010 previously remained indeterminate.
However, the Company has now disclosed its forecasts as shown in “Consolidated Business Results Forecast
for Fiscal Year 2009” above. For details, refer to “Qualitative Information on Consolidated Business Results
Forecast” on page 3.

2.

Forecasts for year-end dividend payments per share for the fiscal year ending January 31, 2010 previously
remained indeterminate. However, the Company has now disclosed its forecasts as shown in “Dividend
Payments” appearing on page 1. For details, refer to “Announcement of Revision of Dividend Forecast for
Fiscal Year 2009,” which has been separately announced.

3.

Beginning with fiscal year 2009, the Company is applying ASBJ Statement No. 12: Accounting Standard for Quarterly Financial Reporting and ASBJ Guidance No. 14: Guidance on Accounting Standard for Quarterly Financial Reporting. Furthermore, the Company is preparing its quarterly consolidated financial statements in
accordance to Rules for Quarterly Consolidated Financial Reporting.

Business results forecast and other forward-looking statements contained in this Brief Statement on
Consolidated Financial Results are based on information currently available to the Company and on certain
assumptions that the Company considers to be reasonable. Actual results may differ significantly from those
projected in the forward-looking statements as a result of various factors.

SUMCO Corporation: Consolidated Financial Results for Second Quarter of FY2009
3
Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Financial and Operating Results

During the quarter under review, economic conditions began to show signs of improvement. However, overall
business conditions remained severe.

While demand for silicon wafers for semiconductors began to recover in the early spring, market conditions
remained severe. Demand for silicon wafers for solar energy cells remained sluggish as severe market conditions
persisted.

In this business environment, the SUMCO Group continued to implement management measures to scale back on
capital investment, overhaul its operational structure, and reduce its labor costs and other expenses. Additionally,
the SUMCO Group formulated and launched various activities for realizing its “Main Points in Business
Restructuring Plan,” which is aimed at creating a more robust corporate foundation and ensuring sustained growth.
The main features of the Plan include restructuring the Company’s small-diameter wafer manufacturing facilities,
improving the Company’s competitive position in solar wafer businesses, and accelerating the depreciation of 300
mm wafer manufacturing equipment.

As a result, for the second quarter (February 1, 2009–July 31, 2009), the SUMCO Group registered consolidated
net sales of 95,777 million yen, operating loss of 48,832 million yen, and ordinary loss of 61,201 million yen.

Following the decision to close the small-diameter wafer plant of a U.S. subsidiary, the projected liquidation value
of fixed assets was registered as an estimated extraordinary loss for the quarter under review. Furthermore, the
deferred tax assets of certain subsidiaries were drawn down. As a result, the SUMCO Group registered a net loss
of 52,921 million yen for the quarter.
2.

Qualitative Information on Consolidated Financial Position

Total assets at the end of the quarter under review amounted to 721,415 million yen, a decrease of 12,481 million
from the end of the previous fiscal year. This was mainly due to the following developments. Cash and time
deposits, and securities increased by a total of 32,314 million yen. On the other hand, tangible fixed assets
decreased by 38,216 million yen as a result of depreciation charges, and notes and accounts receivable decreased
by 7,633 million yen.

Total liabilities at the end of the quarter under review amounted to 387,307 million yen, an increase of 42,931
million yen over the end of the previous fiscal year. The main contributing factors were a decrease of 15,026
million yen in notes and accounts payable, and a total increase of 59,090 million yen in short-term loans payable
and long-term loans payable.

Net assets amounted to 334,108 million yen, down 55,413 million yen from the end of the previous fiscal year.
This primarily reflected a net loss of 52,921 million yen and a decrease of 56,143 million yen in retained earnings
due to dividend payments of 3,221 million yen made for the previous fiscal year.
3.

Qualitative Information on Consolidated Business Results Forecast

Economic conditions are expected to improve during the current fiscal year although they are expected to remain
severe for some time to come.

Continued recovery is expected in demand for silicon wafers for semiconductors. However, the overall business
environment is expected to remain severe.

Based on the above, the Company has disclosed its full-year forecast of business results as shown in
“Consolidated Business Results Forecast for Fiscal Year 2009” appearing on page 2.

SUMCO Corporation: Consolidated Financial Results for Second Quarter of FY2009
4
4.

Others

(1) Changes in important subsidiaries during the period under review (changes in specific subsidiaries involving
modifications to the scope of consolidation): No

(2) Changes in accounting principles, procedures, and presentation methods for preparing quarterly consolidated
financial statements

Application of Accounting Standard for Quarterly Financial Reporting and Guidance on Accounting Standard for Quarterly Financial Reporting

Beginning with fiscal year 2009, the Company is applying ASBJ Statement No. 12: Accounting Standard for Quarterly Financial Reporting and ASBJ Guidance No. 14: Guidance on Accounting Standard for Quarterly Financial Reporting. Furthermore, the Company is preparing its quarterly consolidated financial statements in
accordance with Rules for Quarterly Consolidated Financial Reporting.

SUMCO Corporation: Consolidated Financial Results for Second Quarter of FY2009
5
5. Consolidated Financial Statements
(1)

Consolidated Balance Sheet
(million yen)

End of Q2 of FY2009
(July 31, 2009)
End of FY2008
(January 31, 2009)
Assets

Current assets

Cash and time deposits
24,769
53,955
Notes and accounts receivable
37,981 45,614
Securities
61,500
―
Merchandise and finished goods
17,268 20,775
Work in process
20,364
17,696
Raw materials and supplies
41,803 45,072
Others
13,264
19,948
Allowance for doubtful accounts
(2,018) (3,134)
Total current assets
214,932
199,928
Fixed assets
Tangible fixed assets
Buildings and structures (net)
136,501 125,598
Machinery and transportation equipment
(net)
218,791
195,461
Land
20,604 20,574
Construction in progress
20,585
92,869
Others (net)
2,639 2,836
Total tangible fixed assets
399,123
437,339
Intangible fixed assets
Goodwill
38,797
40,315
Others
7,833 7,130
Total intangible fixed assets
46,630
47,445
Investments and other assets
Investment securities
1,630
845
Others
60,695 48,338
Allowance for doubtful accounts
(1,597)
(1)
Total investments and other assets
60,729 49,183
Total fixed assets
506,483
533,968
Total assets
721,415 733,897