TOKYO ELECTRON LTD (OTCMKTS:TOELY) announced a cash dividend of 0.051011, payable on March 10, 2015. The global economy in the first three-quarters of fiscal year remained on a recovery trend following which company posted strong third quarter results.
The financial performance
The Japanese economy witnessed a moderate recovery in 2014. In the electronics industry, the main segment of Tokyo Electron, the sales of electronics components remained robust. It was due to strong sales of Smartphones in the year. There was a sharp increase in the number of equipments connected to networks. The corresponding rise in traffic resulted in increased demand for data centers servers. For the first three-quarters ended December 31, 2014, the net sales surged 9.8% YOY to 431,295 million yen. The operating income jumped 620.5% to 52,196 million yen. The net income came at 37,468 million yen against a net loss of 35,621 million yen in the same period, a year ago.
Sale of shares
Tokyo Electron sold some of its shares owned by Tokyo Electron Device Ltd. in April and May 2014. The sale resulted in Tokyo Electron Device to switch from a consolidated subsidiary to an affiliate accountable under the equity method. The Computer Networks and Electronic Components segment overseen by Tokyo and its subsidiaries were removed from segments included in the first quarter. The 9.8% YOY surge in net sales mentioned reflects the impact of eliminating Tokyo Electron Device from consolidated range.
In Smartphone segment, sales in emerging nations including China remained strong. The demand for electronic parts such as NAND and DRAM flash memory was robust. Consequently, net sales to external clients in semiconductor production equipment for the first three-quarters ended December 31, 2014 jumped 36.2% to 404,620 million yen. The net sales of FPD production equipment increased 25.1% to 22,781 million yen during this period. The strong demand for flat-panel displays used in Smartphones resulted in a strong performance of FPD sector.