On April 26, Murata announced the latest financial results and the full year financial report for the fiscal year 2019 (as of the end of March).

According to the financial report, Murata’s sales in FY 2019 increased by 14.8% to 157 billion yen, and operating profit surged 63.4% to 266.8 billion yen. Net profit reached a record high, increasing 41.6% to 206.9 billion yen.

At present, Murata’s main revenue comes from the components used in smart phones. Although the sales of the smart phone market have declined in the second half of last year, the overall profit margin has continued to rise due to the excellent performance of automotive electronics.

In mobile phone parts, demand for MLCC is particularly strong, and the annual factory utilization rate is 90%. In addition, automotive grade capacitors have increased by 30%.

Due to the trade war between China and the United States, the future of the global economy is difficult to predict, which indirectly affects Murata’s production and inventory adjustments. It is expected that market demand will be stagnant in the first half of the 2020 fiscal year.

Demand stagnation may be mainly reflected in the high-end smartphone market, mainly because 5G and folding phones are not yet fully popularized. In contrast, demand for advanced driver assistance systems will increase, and is expected to increase by around 20%.

With the advancement of electric vehicles and autonomous driving technology, Murata will focus on the automotive electronic components department.