TOKYO ELECTRON LTD (OTCMKTS:TOELY) is closing in on a dividend offer approved by the company’s board of directors that is to be paid to shareholders on record as of December 31, 2014. Each shareholder according to the press release is to pat ways with ¥35 for each share held starting February 23, 2015. A total of 6, 273 million yen is to be used for the dividend offering, amount coming from surplus earnings on an impressive 2014 fiscal year.
The dividend offer comes on the heels of TOKYO ELECTRON LTD (OTCMKTS:TOELY) seeing its net income for the nine months ending December 31, 2014 nearly doubling earnings reported for the same period the prior year. For the nine months ending December 31, 2014, the electronics company posted a net income of 45, 978 million yen against prior year’s 25,936 million yen. The company closed the year with an equity base of 611, 392 million yen against prior year’s 578, 091 million yen
On forward-looking guidance, TOKYO ELECTRON LTD (OTCMKTS:TOELY) expects its net sales and operating income to remain unchanged for the fiscal year ending March 31, 2015. The positive results for 2014 fiscal year were positively impacted by the gradual recovery of the Japanese economy.
TOKYO ELECTRON LTD (OTCMKTS:TOELY) notes that its electronic components business enjoyed robust growth buoyed by strong smartphone sales as well as an increase in devices interconnection and an increase in data traffic. In the smartphone arena, the company’s sales were heavily impacted by sales in emerging markets of China at the back of strong sales for new sophisticated models.
The demand for electronics components such as DRAM and NAND flash memory also remained strong buoyed by growing demand for servers and data centers. Net sales to external customers in this segment consequently grew by 36.2% to a high of 404, 620 million yen. TOKYO ELECTRON LTD (OTCMKTS:TOELY) also notes that it is continuing to increase investments in the manufacture of large-sized flat panel displays in China as demand for medium-sized flat-panel displays also continues to grow.