TOKYO ELECTRON LTD (OTCMKTS:TOELY) will pay a quarterly cash distribution of 0.051011. The record date is December 30, 2014 and will be payable on March 10, 2015. The company benefitted from stabilizing the global economy in the first three-quarters of 2014.
The robust performance
Tokyo Electron financial performance got a boost from improving Japanese economy. Its main segment, the electronics industry, was one of the best performing segments in the first three-quarters that ended on December 31, 2014. The demand for Smartphones was robust that resulted in a sharp rise in the number of devices linked to networks. The surge in traffic led to higher demand for data-center servers.
Tokyo Electron reported net sales of 431,295 million yen, for the first three-quarters that ended on December 31, 2014. It was a sharp rise of 9.8% compared to the same period a year ago. The operating income surged 620.5% to 52,196 million yen in the same period. TOKYO ELECTRON LTD (OTCMKTS:TOELY) reported net income of 37,468 million yen versus a net loss of 35,621 million yen in the first three-quarters, a year ago.
Elimination of divisions
Tokyo Electron announced that it sold a part of its shares in Tokyo Electron Device Ltd. in the first quarter of 2014. Following the sale, Tokyo Electron Device switched to an affiliate from a consolidated subsidiary accountable under the equity method. It also eliminated the Computer Networks segment as well as Electronic Components from divisions included in the first quarter. The impact of removing Tokyo Electron Device proved to be beneficial for the company.
Performance in Smartphone segment
TOKYO ELECTRON LTD (OTCMKTS:TOELY) said that sales in China and other emerging countries helped the company to report strong numbers in Smartphone segment. The demand DRAM, NAND, and other electronic components were strong. The net sales in semiconductor production segment jumped 36.2% to 404,620 million yen in the first three-quarters ended December 31, 2014.