TDK F1Q08 (Qtr End 6/30/07) Earnings Call Transcript

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2007-07-31 08:10:03.0

Tags: Company Representative, Call Transcript, Operating Income, Earnings, Question, Seeking Alpha

Question-and-Answer Session

Operator

We would like to take questions. And we would like you to limit yourself to two questions at a time. Please state your name and affiliation. Are there any questions? Yes.

Eisaku Ohmori - Mizuho Securities Co., Ltd

My name is Ohmori of Mizuho Securities. And because I am allowed two questions; my first question is in regard to the operating income of the Electronic Materials. Now it's 22 billion, previously in the fourth quarter and now 17.6 billion. Why is it that there was this reduction? What were the main factors for this reduction? I would appreciate your explanation on this. And then the second question is, from the first quarter to the second quarter it was 16.1 billion for the first quarter then in the second quarter operating income of 29 billion. Where did you come up with those figures? I would appreciate an explanation about that.

Unidentified Company Representative

Now, in regard to our first question, can you repeat the question again.

Eisaku Ohmori - Mizuho Securities Co., Ltd

This is in regard to Electronic Materials the actual operating income aside from the restructuring fees you have seen from the fourth quarter to the first quarter, what was the changes?

Unidentified Company Representative

You are asking from the fourth quarter of the last fiscal year?

Eisaku Ohmori - Mizuho Securities Co., Ltd

Yes that's correct.

Unidentified Company Representative

Fourth quarter of last fiscal year it was 18.2 billion yen.

Eisaku Ohmori - Mizuho Securities Co., Ltd

Was that correct?

Unidentified Company Representative

Yes. And then there were some temporary expenses if you exclude that then its about 21.3 billion yen. Now, in the first quarter, in the current fiscal year it's 17.6 billion, and you are asking about this difference?

Eisaku Ohmori - Mizuho Securities Co., Ltd

Yes. For each of the products, what are the, kind of, fluctuations that can be anticipated?

Unidentified Company Representative

First of all, in regard to the Electronic Materials they are mainly flat, meanwhile Electronic Devices, in this area here there is a slight decrease. And then Recording Devices, that's the fourth quarter, here we have seen reduction in the income here. And then for other electronic components, for the fourth quarter there was a slight decrease, that is the situation.

Eisaku Ohmori - Mizuho Securities Co., Ltd

So that means that from the fourth quarter to the first quarter it was mainly the reduction in the Heads that made this contribution to the difference, am I correct?

 

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