This is Yoshida speaking. Today, I would first like to explain the consolidated financial results for the first quarter of the fiscal year ending March 31st, 2021, and then Mr. Kainuma, Representative Director, CEO, and COO, will explain the highlights, including business updates. For the fiscal year March 2021, consolidated net sales was down 8.3% year-over-year, and quarter-on-quarter, it went down by 17.4% at JPY 187.463 billion. Operating income was up 61.4% year-on-year, and down 56.7% quarter-on-quarter to a total JPY 5.364 billion. Profit for the period attributable to owners of the parent was up 64.4% year-on-year and down 65.7% quarter-on-quarter to a total JPY 3.573 billion. The operating income for this quarter includes special expenses of approximately JPY 4.0 billion incurred due to impact of the coronavirus, et cetera.
We estimate that the quarter-on-quarter foreign currency translation impact on sales was JPY 3.46 billion year-on-year, JPY 5.9 billion quarter-on-quarter. Excuse me. Year-on-year, JPY 5.9 billion. The impact on operating income was +JPY 8.8 billion quarter-on-quarter, -JPY 8.4 billion year-on-year. We made a slight retrospective changes to last year's fiscal year's financial statements due to the PPA for U-Shin. Please note that the figures on the following pages are revised figures. Moving on to the next slide. This is the quarterly trend in net sales, operating income, and operating margin. The operating margin for the first quarter was 2.9%. This was up 1.3 points year-on-year and down 2.6 points quarter-on-quarter. Moving on to the next slide. Let's take a look at the results by segment, starting with Machined Components business segment.
On the left is a graph indicating quarterly net sales trends, and on the right is a graph with a bar chart showing quarterly operating income trends, along with a line chart for operating margins. First quarter net sales decreased 20.1% quarter-on-quarter to a total of JPY 35.5 billion. Sales of ball bearings decreased 18.0% quarter-on-quarter to a total of JPY 23.6 billion. The monthly external shipment volume fell 9% quarter-on-quarter for an average of 172 million units. While sales of ball bearings used in fan motors remain strong, those used for other applications, especially automobiles, were down substantially. Sales of bearings for aircraft were impacted by the sharp market slowdown. Sales of rod ends and fasteners totaling JPY 7.4 billion were down 26.4% quarter-on-quarter. Aircraft manufacturing has slowed significantly, lagging production is expected to continue through this fiscal year.
Sales of pivot assemblies decreased 19.8% quarter-on-quarter to a total of JPY 4.5 billion. This is due to the production cutbacks in some supply chains due to the lockdowns in Southeast Asia. Operating income for the quarter totaled JPY 7.2 billion, the operating margin was 20.1%. On a quarter-on-quarter basis, operating income fell 23.7%, while the operating margin dropped 1.0 percentage points. Looking at the results by product, we see that operating income was down quarter-on-quarter for ball bearings, rod ends and fasteners, and pivot assemblies. Moving on to the next slide. Going to the Electronic Devices and Components segment. Net sales decreased 10.5% quarter-on-quarter and stood at JPY 79.7 billion. Looking at the results by product, sales of motors decreased 8.6% quarter-on-quarter at JPY 39 billion. This is due primarily to the slump in the automobile market.
Net sales of electronic devices decreased 13.7% quarter on quarter. JPY 32.5 billion was the number. Sales to the automotive industry declined, but for smartphones, our major customer smartphone models that used our LED backlights were steady. Net sales of Sensing Devices totaled JPY 6.9 billion, decreasing 7.5% quarter on quarter. Operating income was JPY 2.2 billion, the operating margin 2.7%. Operating income decreased 19.3%, and the operating margin declined 0.3 percentage points quarter on quarter. Operating margin by product has not changed significantly. Moving on to the next slide. Let's look at the performance for the MITSUMI business segment. In this first quarter, ABLIC, which was merged with MINEBEA MITSUMI as of April 30th, was included in the scope of consolidation. Net sales decreased 9.3% quarter on quarter to a total of JPY 56.6 billion. mechanical component sales were up thanks to growing demands as more people stayed at home.
Sales of other products declined. Operating income totaled JPY 1.4 billion, while the operating margin reached 2.4%.
Operating income decreased 67.4%. Operating margin declined 4.3 percentage points quarter-over-quarter. Looking at the results by product, we see that profits were up for Mechanical Components and in analog semiconductors, including ABLIC, but for other products, it went down. Moving on to the next slide. The U-Shin Business Segment. First quarter net sales decreased 49.5% quarter-over-quarter to total JPY 15.6 billion, affected by the restrictions imposed on operations in Europe and the U.S. due to lockdowns, as well as production cutbacks by major customers. In the second quarter and onward, we expect an uneven recovery, with some areas bouncing back more significantly than others. Overall, the business is expected to be on recovery track. The segment reported an operating loss of JPY 2.2 billion. Next slide.
The bar graph shows trends in profit attributable to owners of the parent, while the line graph charts changes in the profit for the period per share. Profit for the period was JPY 3.6 billion. Earnings per share was JPY 8.8. Next slide. Quarterly inventory trend. At the end of the first quarter, inventories totaled JPY 204.4 billion, up JPY 34.6 billion over three months ago, due to an increase for some OEM products ahead of peaking demand and an increase resulting from the ABLIC consolidation. Next slide. The bar chart shows trends in net interest-bearing debt, which is total interest-bearing debt minus cash and cash equivalents. The line chart represents free cash flows. At the end of the first quarter, net interest-bearing debt totaled JPY 126.5 billion, up JPY 51.3 billion from the end of the previous fiscal year.
This includes the cost of acquiring shares in ABLIC totaling JPY 33.9 billion and the cost of additional acquisition of C&A shares totaling JPY 4.6 billion. Next slide. Summary of the forecast for the fiscal year ending March 31st, 2021. No changes to the full-year forecasts, which are to remain in the ranges announced at the beginning of the fiscal year. We are still trying to figure out the projection for the second half and have decided to leave our initial projections as they are. Exchange rate assumptions is JPY 107 to the USD, both for the upper and lower end. Next slide. The forecast by business segment. No changes to our initial overall forecast by business segment either. That concludes my presentation. Thank you. Mr. Kainuma, please.
Hello, everybody. This is Kainuma speaking. From my side, today, I only have about two slides in presentations. First of all, going to page 13, I think everybody could read through this at your leisure. From my side, I would like to give you four messages to give you some business updates. The first quarter, in terms of the Machined Components segment, it has gone down in terms of profit. For the Mitsumi business and Electronic Devices and Components business, we have been able to offset that decline. However, the U-Shin business, we will not be able to fully offset the U-Shin business performance. The previous year, it should have been JPY 7.3 billion. We have seen about a JPY 2 billion decline in profit. I think that's a fact that we have to account for.
That said, the second point I want to make is that the sales have started to recover. I think in this three months, so July, August, September, the second quarter period, JPY 270 billion increase of sales, or JPY 270, JPY 100 billion in plus sales is going to be generated. For the first half in terms of operating profit, I think we'll be in line with the last year. In that sense, in May, I talked about our forecast. I think basically we are on track with our initial forecast that we had made in May. Going to the second half, there's some uncertainties. There's still some uncertainties in the situation. In terms of the forecast, we are giving it as a range. In November, we're going to report our results next time in November.
At that time, I think we'll be able to give you some more detailed information about our performance. The third point I want to make is that for the LED backlight business with a couple, maybe a month or two months ago. A certain economic paper talked about this on the front page, and it said that the LED backlight is going to disappear. The same newspaper, in terms of the timeline-related article, basically they wrote that the LED backlights will not go away. That was the nuance of that article. This type of, I think the volatility related to this type of news has been more moderate, but there is a negative impact on the share prices. We can't deny that. I have always been saying that LED backlights will not go away. Please understand my stance on this matter.
Going to the actual status currently. The ball bearing business, I think basically we have to talk about the market condition. We have to talk about the market condition of ball bearings. In terms of Machined Components, automobile and aircraft, that was the reason why the performance for the Machined Components was bad for the first quarter. For the aircraft, I think that the damage was substantial. If you consider the product mix, so for the defense aircraft, rod, and fastener. We have that business, so it's not loss-making. For the ball bearings. The product mix has changed because the 5G-related fan motors has gone up, but the automotive applications has gone down. Recently, the automotive applications have started to recover very robustly. That is our understanding in Japan.
The ball bearings for the Japanese cars, well, 10 million per month, if we sell that much, it means that it will be a very strong sales, if we will sell that level. This month and next month, we think that we will be able to achieve the 10 million number. Europe, United States, we have started to see an increase. For the automotive industry overall, so 65 million was the peak. Currently, it's 50 million plus. Gradually, I think this will start to recover. In terms of the product mix, for us, it is a very good situation. As for fan motors, because of the US-China issue, for the customers in China, the production on the part of the customers have slowed down somewhat.
Eventually, because of 5G-related, Ericsson, Nokia, there is a possibility that the orders will go to those manufacturing companies. In any event, our ball bearings would be in need. We do see some decline in volume, but we expect the return, recovery, to a more robust development going forward. Last month, the 178 or 179 million was the units sold of ball bearings. September to October, 190 million-200 million for the external shipments. That seem to be within the reach. Ball bearing is always a leading indicator. That's what I've been saying. In terms of the leading indicator, we do see signs of recovery. Slide 14. The message here is very simple. We enjoy lion's share in various markets, in various products, and therefore, in the current global situation under COVID-19, we are affected, but our growth story, growth scenario remains unchanged.
Once the economic activities return, owing to various factors, we believe that our earnings capability would be regained. That structure remains unchanged, and we have a strong belief in that. We are convinced of that. That's all I have from me for today, and we will now take your questions. Thank you. Let's go to Q&A. There's the first question from Goldman Sachs, Takayama, please. Thank you very much. Can you hear me? Yes, we can hear you. My first question. From the first quarter to the second quarter, I would like to give you the breakdown of what change has happened. You talked about sales, so JPY 270 billion plus alpha. The first half will be the same level as the first half profit. The JPY 17.6 billion would be the calculation. The quarter-on-quarter, so JPY 82.5 billion profit will increase.
In terms of the contribution, for the four major segments, how much sales is going to go up and how much that will contribute to the increase of profit? Could you give me the breakdown? This is Yoshida speaking. First, in terms of the Machined Components segment, let me talk about the assumptions or the market conditions. Let me explain about that for the aircraft. Not only for the second quarter, for the full year, it will continue to be at a stagnant situation. For the ball bearings, for the automotive, numbers will start to recover. Second quarter on quarter will be positive. The third quarter will look further beyond the positive trend. That is our assumption. Against this backdrop, for the Machined Components business, a slight positive is what we are assuming.
In terms of the Electronic Devices and Components business, for the first and the end of last fiscal year at the report. For the second quarter to the third quarter, gradually the volume is going to go down in terms of the LED backlights. There has been some delay in that. The second quarter sales is going to be more than first quarter. The second quarter is going to be the peak for the backlights. In terms of motors, the automotive business, it will start to recover. The increase of sales, increase of profit can be expected for this business. That's for the Electronic Devices and Components business. In addition, in terms of LED backlights, there are strong inquiries coming from the customers. That trend is continuing. For the MITSUMI business, overall, automotive related business will recover.
That trend will be unchanged. In terms of the games related mechanical components, in the second quarter, the major peak will arrive. This will be very strong orders are coming to us. This will be basically going to a strong operation environment. For the optical devices, for North America, we have very strong orders coming for North America. On the other hand, for China, for actuators for China, especially for the high-end side, we're seeing a slowdown. There are some differences depending on the business. For the semiconductors, in terms of two businesses, the semiconductors, basically it will be very stable. For the U-Shin business, the first quarter, I think it's not necessary to explain. There has been lockdowns in various countries, and the automobile OEM productions have started to recover. Sales is going to increase.
That's the overall picture. This is only qualitatively, but you can rank it. The MITSUMI sales and profit change will be the major factor of the increase of profit from the first quarter to the second quarter. Next will be Electronic Devices and Components and Machined Components. U-Shin, basically would be breakeven for U-Shin from the second quarter. I don't know whether we'll be in breakeven, but against the first quarter, I think we will see a major improvement in the second quarter for U-Shin. That's the overall status. I think that you are correct. Thank you. The second question, well, this is related, but in the first half outlook, I thought that maybe you should have come out with the outlook because you talked about profit is coming this much, and sales is going to recover this much.
Were there some uncertainties beside the fact that you didn't have outlook first half? I understand they won't be able to come out with the second half for the full year. Mr. Kainuma, what's your take? I think it depends how you think about it. I talked verbally about the, basically, we have about the same as last year, but overall, I think you have to talk about giving a range. Simply speaking, we don't want to mislead you. That's the reason why we're giving you a range in terms of our outlook. For the first half, rather than talking about specific numbers for the first half, I think we should talk about this range, so that you can observe the full year performance of our company. I haven't really thought that deeply about this. Understood.
Lastly, I think this is a rough observation, but compared to the couple of months ago, towards the July to September to December period, do you think by segment, by product, where do you think they would be, on upper part of the range or lower part of the range? By business, by product, if you look at that perspective, what type of momentum do you see by each of these aspects? That's the reason why I'm giving you the range. The automotive industry, I think we have started to see a slight light down the road. That's the situation. The initial scenario was that the first half, the business will be supported by the sub-core businesses. The second half, the analog semiconductors, these new businesses, the 8 spears, the new business will support us.
That has been our initial scenario.
I think this is related to the question that you asked. Our assumption, in terms of October and onwards, so we'll be start to see a very strong upward trend or momentum. To be frank, we don't have that level of confidence. In any case, at this stage, I would like to offer you a range as an outlook. I hope you understand our intention. For the second half, the 8 spears core business, how much are they going to recover? How are they going to contribute to the profit? I think it all depends on that.
Understood. Thank you.
Thank you. The next questioner from Morgan Stanley, MUFG, Sato, please. This is Sato. I hope you can hear me. Yes. Thank you for your presentations. First, figures. I have three questions. Ball bearing shipment volume, external, internal, and production for April, May, and June. Monthly volume, please. If possible, July trend as well, please. External April, in millions. 177, 173 and 166. July, approximately 180. Second quarter, 180 would be the floor and some addition. Third quarter onward, 190-200 million units. That's for external shipment. Internal shipment, April, 55, 51, 52. In July, 54, 51. About the same level. That's internal shipment volume. What about production volume? Again, starting in April, 258, 208, 236. In July, 240-250 are what we are projecting. Thank you. Also, about ABLIC. The sales in 2018 was over JPY 30 billion, operating profit over JPY 4 billion.
That have been disclosed. What were the results in 2019, fiscal 2019? What were the results in the first quarter and the projection for the full year? Currently, due to macro factors, there are some impact, but on a full year basis, about the same level, especially the profit level. We believe that that could be achieved. The first quarter, Mitsumi business segment. The impact of ABLIC, how much impact did it have on the sales and profit of Mitsumi business in the first quarter, please? The consolidation was only for two months, so JPY 300 divided by 12, and a little less than that would be sales, and profit would be on track. If you can multiply that by two, you can get the figure for two months. Thank you. The profit for Mitsumi, compared to the fourth quarter, there was a big decline. What are the reasons?
What were the reasons for that? That's my last question. optical devices business. Temporarily, the demand season ended at the end of the fourth quarter. More specifically, in the Greater China area. The demand is fourth quarter, and demand has come down starting at the beginning of first quarter. That's the main reason. For second quarter onward, centering on North America, we expect recovery. What's different from the projection made at the beginning of the fiscal year was the high-end smartphone growth in the Greater China area did not realize, from the second to the third quarter. Those are the differences. If I could add, the game console could not be built because of the component supply chain was disrupted because of the COVID-19 impact. The production could not be made during the first quarter. That affected the original Mitsumi business segment in the first quarter.
The game console business, that portion should come back in the second quarter. For North America, in the fourth quarter, your market share increased, and that market share, do you think could be maintained for a camera actuator? I would not comment on the market share question, but currently, the preparation for production is steadily underway. Toward the second quarter, very strong production is being planned. That is for the North American market. For the game console business, what's the situation? In the first quarter, as Kainuma-san just said, in the first quarter. Let me go back. In the fourth quarter, in the Greater China area, because of the lockdown, the production was disrupted. That's where all the plants are.
We were hoping that we could make up for that in the second quarter, but because of the disruption in the parts supply, we couldn't do that. Starting in June, things recovered. From July and then onto August, getting closer to the full operation. I see. Thank you.
Thank you. From UBS, J. Morgan, Stanley Securities, Uchino-san, please. This is Uchino. Thank you for taking my question. I want to ask three questions. One is on inventory assets. Can I confirm what is increasing? You're preparing for increased capacity production. By segment, where is you're seeing the increase in inventory assets? That's my first question.
ABLIC, we have newly considered ABLIC. That's one addition to our inventory assets. I talked about the production trend for games in the first quarter. We basically were thinking about increasing our production in games for the first quarter, but some components basically were not available, so we were not able to produce in the first quarter. The inventory increased for the game consoles. For this inventory, in the second quarter, the high level of operation is going to be planned, and we'll be able to bring down the inventory. That's the overall situation for the inventory.
ABLIC, how much is accounted for ABLIC?
We do not actually propagate anything about the independent inventory, but I think generally speaking, it's about the same level as the general semiconductor industry in terms of inventory.
You haven't started to produce actuators. Is that my correct understanding?
Well, yes. In the fourth quarter, we're going to push for the production for the fourth quarter. For the first quarter, including some pushbacks in the customers, but we'll be able to ship that going into the second quarter. I don't think there are any issues surrounding actuators right now.
Understood. In terms of Mitsumi, I have two questions about Mitsumi. In terms of the game console business, the lack of components has been solved and basically going back to full utilization. As the outlook, how far can you go in terms of the order situation? How much visibility do you see in terms of I would like to look at your future outlook.
Well, basically, this is what the customer's decision, so we can't say fully, but second quarter, 100% utilization. Third quarter, I think basically be close to full utilization. The fourth quarter, in terms of, I think we'll be able to see a certain level of production. That's our assumption. Initially, at the beginning of this year, compared to that level and the production level that we are anticipating right now, I think basically it is going up.
If you look at seasonality, the middle of the quarter, the production tends to go down. I think that's a normal situation. Basically, does that mean that the momentum is improving because inventory is at a low level? Compared to a normal year, this is a more sustainable momentum that you're saying?
Yes, I think that's the correct assumption.
Yes. Thank you. My third question is that, again, this is about Mitsumi. The increased production of actuators. I think it had frozen, the increase of the production. What is your update of the current situation with the actuators?
I think we have always explained about that. For the Philippines, productivity should be improved, the asset efficiency should be improved. That would be a focus. I think the next fiscal year onward, there'll be more business opportunities. Thailand and Cambodia, we'll be looking at those countries. That the overall by plant allocation should be considered, and then we should base our plans on that allocation. There's no change from Your stance hasn't changed from the previous meetings. Understood. Thank you. Thank you. Next questioner, from Mizuho. Goto-san, please. Can you hear me? Yes. Please start. I have three questions. I'll go one by one. First, about U-Shin, the progress of PMI. The external factors are very difficult, I think there are things that can be implemented management-wise. What's your current view of the progress and of effect? This is Kainuma speaking.
Due to COVID-19, until very recently, production had been halted. Now, finally, we are seeing signs of resumption. We are implementing many things now for all products. Markup is being investigated one by one. We are studying that, and we are asking customers for their cooperation. Price increase, and the withdrawal business in Southeast Asia and others. There are many things that we can work on. In November, I think we can have a more solid explanation about U-Shin. Currently, all we can say is that we are doing many things. Understood. I'll look forward to your next earnings briefing. You made no changes to the full-year guidance and the risk factors for the second half. What are the things that you are worried about as management? What risk factors are you concerned about? If you can talk about that.
Subcor and Eight Spear, if you could separate the two, I'd appreciate it. Foreign exchange is the perennial issue, so excluding that. In our mind, the biggest risk is the result of the US presidential election and the ensuing impact on the US-China relations. Many of the original assumptions that we have been disrupted. For example, the cell phones, the mobile phones. Good balance, we were able to bring to a very good situation. The high-end products today, Chinese customers are faced with a very difficult situation. We have to keep a close eye on all these developments. Overcoming the COVID-19 vaccines to be developed and supplied in fall. What would happen, what would not happen, we really don't know. Everything is uncertain.
This summer, we are seeing an increase in the number of people affected, and when winter comes in the Northern Hemisphere, what is going to happen in terms of infection, that's another risk. As has been mentioned many times, we enjoy lion's share in many products. Once the economy returns, we can enjoy good business. We're not going to be caught surprised by an increase in production. We are always preparing for that. We have to manage and control all possible risks for the time being. Understood. Thank you. My last question, a very simple question. Always pursuing new products, you are working on that. From the second half to next fiscal year, what are the areas, where are the products that are expected to make contributions? Because of COVID-19, everything has been pushed back, postponed.
For this fiscal year, 0 is the answer. In terms of positive challenges that we are making, smart lock launch is what we are working on, and we're hoping that in October timeframe, product launch will be realized. We do sell masks as well, surgical masks. MINEBEA MITSUMI brand name to become more common to the general public, I think this will be a good opportunity. This so-called B2C business, the products that would allow us to go further into B2C business, we will be pursuing that. In terms of sales contribution, it is not going to be large. We don't have much expectation there. Going forward, we believe that that will be one of the major trends. As a starting point, we are thinking of starting and increasing those businesses. In terms of major new businesses, everything has been pushed back.
Plants in Cambodia and Thailand, the plant factory audit has been suspended. No progress. We are suffering from that, but we're not the only one. All the vendors are faced with the same issue. No progress in the factory audit. By overcoming all the difficulties related to the COVID-19, I think that would give us the opportunity to change the way we do business. Thank you.
Thank you. Next, SMBC Nikko Securities, Watanabe-san, please. This is Watanabe from SMBC Nikko Securities. Thank you for taking my question. First of all, the COVID-19 expenses, JPY 4 billion, how have you treated this? Can you talk about this using the P&L? It has been for JPY 4 billion extraordinary expenses last year. COVID-19, is it in SG&A or is it in cost?
Sales. How should I look at it in the P&L? It's in cost, however, but it's all expense. It's unrelated to inventory.
It's not in other expenses?
It's in other expenses. Excuse me. It's in other expenses. It's in cost.
Going forward, how should I think about this? Going forward, is this going to happen again, or is it going to come up in the second quarter again?
The level of lockdown has changed, so it won't be zero, but I think it'll go down to a minimal number.
Understood. Thank you. Yoshida-san, you're in charge of this, so I would like to ask you. In terms of the COVID-19 countermeasures, what is your stance for that?
Well, I actually am in charge, kindly speaking. I would like to answer to your question. Right now, it's about 2 days a week, or it used to be 3 days a week. We connect sites all around the world. Well, actually right now, it's once a week that we do this conference. I think what is becoming more and more serious is Mexico. That's the country that's becoming serious. The Philippines. Those countries gradually, the people who are infected, the number is increasing. Of course, it's very clear what we should do. We are very thorough in these countermeasures. We are always vigilant. We have not dropped our guard at all.
Your control method is that people will not be infected.
Yes. We will prevent people who are infected not to go into the plant. If necessary, all the employees will go through PCR testing. That's what we are doing. If necessary, we will quarantine people, isolate people, and if necessary Watanabe-san. Sorry, I would like to make a correction. Basically, it's in other expenses. It's in the JPY 4.2 billion other expenses is included in here, COVID-19 related expenses.
Understood. Well, my second question is that I want to confirm about your strategy about using. If you look at the automotive industry, I think it will take about two to three years to go back to the pre-COVID-19 situation. If you just take normal measures, I think basically, it will take a lot of time to go back to the profit level that you think is ideal. Are you going to take a business as usual countermeasures, or are you going to accelerate your measures compared to the original plan?
We are actually accelerating our measures compared to the original plan. The biggest issue is Europe. Price in Europe is not rational. In terms of setting the price, is not rational at all. We have seen those examples. First, we have to correct the situation. That's where we have started. Of course, when we are in a difficult situation, that is an opportunity, and I said that in November, we'll be ready to announce more about using. For specific measures at the November earnings results meeting, I think we can give you some more specific detailed information.
Understood. Thank you. Lastly, my third question. In terms of the external environment for M&A has become better. In terms of the capital market, the good companies are expensive, and then the companies that are not performing well are cheap. Basically, you have to buy at a high price, even if it's not a good opportunity. I think there's things that you see rather than us, so can you explain?
Yes, exactly. We understand what you say. We want to be very careful in going forward with these deals. Basically, we have some good and bad deals. Some companies are very good. I think in normal times, this is the same situation. There'll be some jewels out there. We look at the target, and if we will consider whether we can actually tap in with the synergy, I think that's the most important point. We will observe that fact and go forward if necessary. Understood. Thank you. Thank you. The next question is from Akizuki-san from Nomura Securities. Thank you. A very simple question on figures and clarification. Mitsumi consignment sales. What was the consignment sales of Mitsumi in the first quarter? If possible, can you talk about the projection for the second quarter as well?
First quarter, JPY 12.7 billion, and second quarter, approximately JPY 40 billion, 4-0. Which would mean that quarter-on-quarter, consignment is increasing and therefore the sales of mechanical components are expected to go up. You're talking about first quarter and second quarter? No. Fourth quarter to the first quarter. Q4 to Q1. Q4 to Q1. Yes, an increase. Of course, Q4 FY 2019, that was the period where the plants in China were shut down for almost two months. The utilization rate was very low. Whereas in the first quarter, Q1, although there were the component supply issue, the plant itself was operational. Therefore, Q4 to Q1 increase in sales. Which would mean that the camera actuators sales dropped significantly. Was that the factor? Are you talking about the first quarter? Camera actuator sales? Yes. Compared to the fourth quarter? Yes, you are correct.
That had an impact on profit as well, correct? Yes. My second question is on camera actuators. The sales to the Chinese customers are not expected to go up because of the China-US relation. Could you give us an update on Cebu? I understand that even stricter restrictions had been imposed in the Philippines, part of Philippines today. In this situation, can you really expect a steady resumption of operations in the second quarter, July to September? Well, operation-wise, it's 100%, the utilization rates, and as was mentioned earlier, very harsh or very strict controls are underway. So far we don't see any issue. Simply put, this is the beauty of large-scale operation.
What we are doing is, partly, when sales are not expected, it would mean that there's redundancy in people, surplus in people, we do the reverse isolation, and dispatch those people to the areas where manpower is needed. Therefore, in our operation Well, I'm not there personally, so I don't know to what extent exactly, but I am told, and I have confirmed that there are no issues. In Mexico, where smaller scale in operation is the scale, then when you don't have many people, and when the people infected increases, that will be an issue. In the case of Mexico, from Japan or China, we need to transport products to continue the operation, plus continue the production to the extent possible. It's the hybrid operation. In large-scale plants, there are many workarounds that we can implement. I see. Thank you.
My last question. Rod ends and fasteners. Listening to the foreign operators for aircraft, sales are to further go down in July-September quarter. Even greater sales decline is expected going forward. I'm not an expert in this area, so could you share with us your view on this? Well, basically, personally, as was mentioned in May, even in that situation, what the timeframe would be for the COVID-19 to be placed under control, that will be the key determining factor. Looking at Japan and others, through the lifting of lockdowns, and the self-imposed restrictions, people will go out, and the number of people infected would increase. Now, what about the overall trend? It's already at the low level. We have already incorporated that. We are blessed in that we have the defense business, and therefore the negative impact is limited in that respect.
In fact, at a time like this, we can put into practice what we had to do, what we wanted to do, including the inventory management as well as work-in-progress management. I see. The level for April, June, the first quarter, would remain for some time, correct? Yes. That is correct. Thank you. We have reached the end of this meeting, so I would like to end the Q&A session at this point. Thank you very much for participating. We would like to end the meeting.