OMRON Announces Adjustment to Fiscal 2008 Consolidated Performance Forecast


Company Name: OMRON Corporation
Representative: President & CEO
Hisao Sakuta
Stock ticker number: 6645
Stock exchanges: Tokyo, Osaka, Nagoya
(First Sections)
Contact: Hideo Higuchi, Senior General Manager
Corporate Strategic Planning Headquarters
Phone: +81-75-344-7175

Tokyo, Japan - OMRON Corporation (TSE: 6645; ADR: OMRNY) today announced an adjustment to its consolidated performance forecast for fiscal 2008 (April 1, 2008-March 31, 2009), which was announced with its second quarter results on October 30, 2008. Details are as follows.

  1. Adjustment to FY08 Consolidated Results Forecast (April 1, 2008 - March 31, 2009)
    (Millions of yen)
      Net sales Operating income Net income
    before income taxes
    Net income
    Previous forecast (A)
    (Announced on October 30, 2008)
    725,000 36,000 33,000 20,500
    Revised forecast (B) 635,000 7,000 2,000 1,000
    Difference (B)-(A) (90,000) (29,000) (31,000) (19,500)
    Difference (%) (12.4) (80.6) (93.9) (95.1)
    Results for the year ended March 31, 2008
    762,985 65,253 64,166 42,383

  2. Reasons for Adjustment to FY08 Consolidated Results Forecast

    The current economic turmoil caused by the financial crisis has severely deteriorated the entire global economy as worsening performance centered on manufacturers has become apparent. Markets related to the OMRON Group are expected to become increasingly severe with the impact of factors including the suspension or delay of capital investment by manufacturers overall, weakness in businesses related to the semiconductor industry, and production cutbacks in the automobile industry. Given these conditions, OMRON has revised its consolidated performance forecast from the figures announced on October 30, 2008.

    The assumed exchange rates for the fourth quarter, which have been used in the performance forecast for the full fiscal year, are USD 1 = JPY 90 and EUR 1 = JPY 115.

    Note: The revised performance forecast for the full fiscal year and other forward-looking statements are based on information available to the Company at the current time, and on certain assumptions judged by the Company to be reasonable. Due to a variety of factors, actual results may be materially different from the forecast.

  3. Emergency Measures and Structural Reform

    To date, OMRON has worked to cut costs and implemented certain measures, such as the return of a portion of directors' and executive officers' monthly compensation, to cope with the sudden global economic downturn. However, with no immediate prospects for recovery and the continued worsening of the economic environment, we have decided to radically alter our approach, abandoning our mid-term goal for the third stage of our long-term management vision "Grand Design 2010" (GD2010) and repositioning the two years until March 2011 as a "revival stage."

    In line with this, we have decided to establish a new division, the "Emergency Measures and Structural Reform Headquarters," headed by President & CEO Hisao Sakuta. From February 2009 to March 2010, this division will be responsible for ensuring that emergency measures and structural reforms spearheaded by the head offices are swiftly and steadily implemented.

    In terms of emergency measures, OMRON will withdraw from unprofitable businesses, suspend large-scale investments, and implement further cost cutting in order to reduce costs across the OMRON Group by 40 billion yen and recover profits.

    In the medium term, we will carry out business domain and management structure reform, and restructure our three control businesses (industrial automation business, electronic components business, and automotive electronic components business), which will include the consolidation of global production bases. Through these and other measures, we aim to continue strengthening OMRON's resilience to changes in the business environment.


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