Date: May 10, 2011
To Whom It May Concern
Company Name:
Sanken Electric Co., Ltd.
Code No.:
6707 (the TSE, 1
st
Section)
Inquiries:
Hideo Takani
Investor
Relations
Office
TEL: (048) 487-6121
Notice of Extraordinary Losses Incurred and the Difference between the Forecasted Consolidated
Business Results and Actual Business Results
The Company hereby announces extraordinary losses recorded in its consolidated financial statements incurred
as a result of the Great East Japan Earthquake for the fiscal year ended March 31, 2011. The Company also announces the details of the difference between its forecasted consolidated business results and actual business results arising from the extraordinary losses recorded.
1. Extraordinary Losses Incurred
・ Yamagata Sanken Co., Ltd., Kashima Sanken Co., Ltd., and Fukushima Sanken Co., Ltd. (hereinafter
referred to as “Yamagata SK,” “Kashima SK,” and “Fukushima SK,” respectively), subsidiaries of the Company, were affected by the Great East Japan Earthquake.
・ As a result of the Company group’s extensive efforts to recover from the damages, all of the subsidiaries
resumed production. Kashima SK and Fukushima SK fully returned to normal operation before the end of March 2011. Meanwhile, as a result of an aftershock and blackout on April 7, 2011, Yamagata SK took longer to fully return to normal operation until the middle of April.
・ Ishikawa Sanken Co., Ltd., a subsidiary of the Company, was not affected directly. Problems with part
and material procurement caused by the earthquake, however, forced the company to temporarily suspend related production lines.
・ Accordingly, we record, as extraordinary losses in the consolidated financial statements for the current
fiscal year, ¥813 million of earthquake-related expenses, including equipment repair expenses as well as fixed costs from suspended operation.
2. Difference between the Forecasted Consolidated Business Results and Actual Business Results
(1) Difference between the Forecasted Consolidated Business Results and Actual Business Results for the Year
ended March 31, 2011 (April 1, 2010 to March 31, 2011)
Net sales
Operating
income
Ordinary
income
Net income
Net income
per share
Previous forecast (A)
(millions of yen)
146,000
(millions of yen)
6,500
(millions of yen)
5,000
(millions of yen)
1,200
(yen)
9.89
Actual results (B)
144,882
6,149
4,972
-922 -7.60
Change (B-A)
-1,117
-350
-27
-2,122
―
Ratio of change (%)
-0.8%
-5.4%
-0.5%
―
―
Reference
Results of the previous year
(Fiscal year ended Mar.31, 2010)
134,134
-5,482
-6,048
-18,950 -156.05
(2) Reasons for the Difference
As stated in 1 above, the Company recorded earthquake-related expenses of ¥813 million as
extraordinary losses and a loss on valuation of investment securities due to the post-earthquake sluggish stock market. This resulted in a difference between the consolidated business results forecast announced on November 5, 2010 and the actual business results.