Release: October 28, 2011
Company Name: NGK INSULATORS, LTD.
Listing Code: 5333
Stock Exchange Listings: Tokyo and Nagoya
Representative: Taro Kato (Mr.), President
Contact: Susumu Sakabe (Mr.), Director & Senior Vice
NGK INSULATORS, LTD. has announced that it decided today to
revise its forecasts of full-year consolidated financial
results due to the enactment of safety countermeasures and
other responses to a fire incident on September 21 this
year relating to NAS (sodium-sulfur) batteries manufactured
and sold by NGK.
1. Outline of the Incident and Course of Events
On September 21, NGK-manufactured NAS batteries for storing
electricity owned by The Tokyo Electric Power Company,
Incorporated (Head Office: Chiyoda-ku, Tokyo) and installed
at the Tsukuba Plant (Joso City, Ibaraki Prefecture) of
Mitsubishi Materials Corporation (Head Office: Chiyoda-ku,
Tokyo) caught on fire.
The fire occurred at around 7:20 a.m. on September 21, and
at around 3:55 p.m. that afternoon the fire authorities
declared the fire had been brought under control.
Thereafter, the temperature of the combustion residue was
monitored and at 3:25 p.m. on October 5 the fire
authorities confirmed that the fire had been extinguished.
At present, the fire authorities are investigating the
cause of the fire. NGK, for its part, formed an Accident
Investigation Committee (chaired by Takeyuki Mizuno,
Director and Senior Vice President) on September 21, which
is looking into the cause of the fire and measures to
prevent a reoccurrence.
NGK began shipping NAS batteries in 2002 and since then
they have been installed in a total of 174 locations in 6
countries around the world, storing 305,000 kilowatts of
electricity. In February 2010, a fire broke out in an NAS
battery operating at a customer's business premises.
However, the NAS battery that caused the fire was a
different, special type of battery. NGK implemented
preventative measures with respect to this special type of
battery, as well as re-confirmed the safety of all NAS
battery types. NGK regrets there has been another fire
despite these efforts.
NGK is putting the highest priority on identifying the
cause of this incident and looking at measures to prevent a
reoccurrence. At the same time, NGK has temporarily halted
production of NAS batteries in the meantime. Furthermore,
in order to make doubly sure of safety, NGK also asks
customers who need to maintain a minimal level of
functionality such as using the batteries as an emergency
power source and so on, to consult with it on an individual
basis about the method of operation.
NGK deeply regrets any worry or inconvenience to customers,
local authorities and residents. The Company is doing its
best to ensure that customers can use NAS batteries with
peace of mind.
2. Outlook and Impact on Business Performance
Despite the best efforts with the help of interested
parties, more time is needed to identify the cause of the
fire a month after the incident. At present, NGK continues
to place top priority on safety measures and therefore asks
customers not to use NAS batteries for the time being. NGK
will also not manufacture batteries at its plants for the
time being. Regarding new shipments, NGK has no option but
to postpone shipments until safety is confirmed.
Accordingly, NGK expects to see a sharp drop in sales of
batteries that it had expected to be concentrated in the
fourth quarter of the current fiscal year, and also expects
to incur a loss on operations at plants from October.
Additional special losses may arise for additional safety
measures on the installed batteries and at the
manufacturing stage. However, because of the uncertainty at
this stage, NGK has not determined its net income forecast.
NGK will make an announcement as soon as it is reasonably
able to do so.
For details of revisions to operating results, please refer
to the separate press release issued today titled
"Notice Regarding Differences in Business Forecasts
and Revisions to Business Forecasts."
(Reference) Forecasts of consolidated financial results for
the fiscal year ending March 31, 2012 (April 1, 2011 to
March 31, 2012)
(Millions of yen, except per share data and percentage)
per Share (Yen)
Previous Forecast (A)
Revised Forecast (B)
(Reference) Year ended March 31, 2011
(Note) Figures for the year ended March 31, 2011 have been
retrospectively restated to reflect changes in accounting
This document contains forward-looking statements that are
based on management's expectations, estimates,
projections and assumptions that were available and
reasonable at the time of release. Actual future results
and trends may differ materially from those in the
forecasts due to a variety of factors.