It is on time. I would like to kick off. That is our performance briefing for the Third Quarter of the Fiscal Year, March 2019, of TDK Corporation. First of all, let me introduce the attendees of today from TDK Corporation. Mr. Hiroyuki Uemura, Senior Executive Vice President. Mr. Noboru Saito, Senior Vice President. Mr. Tetsuji Yamanishi, Senior Vice President. Mr. Fumio Sashida, CEO, Energy Solutions Business Company. These four are the attendees from TDK Corporation today. The consolidated result of the third quarter for March 2019, and consolidated full-year projections for March 2019, will be presented by Mr. Tetsuji Yamanishi.
This is Yamanishi. Slightly up at 2.8% year-on-year. Operating income was slightly down 2.1%. We did not stop the first half momentum. For the 9-month basis, net sales, operating income, as well as income before income taxes and net income, all achieved new record highs. Year-on-year basis, capacitors, particular MLCC, grew dramatically, mainly driven by the automotive market, which demands reliability and redundancy in design. Both sales and profit continuously expanded, pushing up the profit baseline for the entire passive components business for the company. Energy Application Products segment, particularly the rechargeable batteries sales to major companies in China grew big. Cell phone, tablets, and notebook PCs also had a steady growth. Thanks to our continuing efforts for cost reduction, our COGS declined, giving us a higher profitability. TDK's overall profit level increased in a big way.
Triggered by the U.S. and China trade frictions recently, we are having macroeconomic changes. In particular, the decelerating Chinese economy is having a great impact on the world economy. In our case, orders in the major segments, including auto and ICT and industrial segments, showed a rapid deterioration, starting from the midpoint onward in the third quarter. In the previous briefing we had on October 31st, we made an upward revision for the full-year forecast. Our assumption for orders have greatly changed, and we believe this situation is here to stay for some time to come. We decided to modify our full-year forecast downwardly. As for details, I am quite happy to give you a good explanation later. The good market environment has changed so dramatically, giving us an unclear outlook, at least for the short-term basis.
Our market environments have not changed a bit on the mid-term basis. The so-called digital transformation, such as IoT and AI and the other digital technology-led transformations trends will not change, including further EV development in the utility and the energy fields. We believe that the electronic components TDK offers will have a sure growth going forward. We should focus on achieving our mid-term plan targets, while keep an eye on for our mid-term management environment. Next, I would like to go through the performance summary. Year-on-year basis, net sales was JPY 350.8 billion, up JPY 9.7 billion, or up 2.8%. Operating income was JPY 32.8 billion, down JPY 700 million, or down 2.1%, declined slightly. Income before income taxes was JPY 31 billion. Net income was JPY 22.4 billion. EPS was JPY 177.45, respectively.
Due to the U.S. GAAP, the retirement benefit cost change, we transferred about JPY 1 billion retirement cost in previous year's profit loss to non-operating expense. As for the average change rate for the term was JPY 112.90 vis-à-vis the U.S. dollars, and yen appreciated by 0.1%, and JPY 128.87 vis-à-vis euro, the yen up 3.1%. All in all, sales side, actually, we had an impact JPY 4.9 billion down. Operating income, actually about JPY 300 million downside. As for the FX sensitivity, no change. Looking at the yen to dollar, actually, per yen on a full-year basis, JPY 1.2 billion. Between the yen and the euro, it was about JPY 200 million, according to our estimate. I would like to go segment by segment.
Starting from the current fiscal year, we became 13.8%, while with the improved profitability helped by the good sales of highly reliable and redundant products in the auto industry. Its profit improved greatly due to the continuous conditions coming from the improved product mix and improved productivity. Aluminum and the film capacitors suffered from the declines in the sales and the profit affected by the renewable energy situations, particularly in the Chinese market. Inductor devices enjoy a continuing firm sales, mainly in the auto sector. On top of it, ICT sales grew. In the China market, in particular, observed a decline in home appliances and industrial equipment business, and gaming business also declined. Operating income was maintained to the previous year's level due to the improved product mix. Piezoelectric materials and ceramic filters actually enjoyed growth in sales.
The circuit protection components also was able to maintain its profit up to the last year's level, thanks to the improved cost structure, though the sales per se for ICT declined. Next, on the Sensor Application Products segment. Due to some product mix change, operating income basis grew by JPY 100 million. Net sales JPY 19.7 billion, or down 8.8% year-over-year basis. Operating income, including the InvenSense acquisition cost JPY 1.6 billion, became a loss of JPY 5.5 billion. Temperature and pressure sensors, despite an impact coming from the decline in the home appliance business in China, the auto business grew firmly in sales. Its profit moved flat in light of the increased R&D and sales promotion spend, particularly in the piezoelectric field. Magnetic sensors, thanks to the increased sales in the automotive and Hall sensor business, grew both in sales and profit.
In regard to TMR sensors, were down due to the big around continuing efforts and for the cost, actually, now we are enjoying good improve. MEMS sensors were affected by the slowdown in the Chinese economy. Smartphone and drone sales went down. Sales for gaming devices also declined. M&A costs went down by JPY 600 million from the previous year due to the initiatives for the customer base expansion, as well as the new models development in a rapid way. Development costs actually went up, making our loss bigger.
Next, we'd like to move on to the Magnetic Application Products. We'd also revised last year's performance due to the recombination of segments, - JPY 14.4 billion of the net sales, and JPY 1.5 billion for the operating incomes of last year. The business status and net sales is JPY 66.4 billion, 8.4% less year-on-year, and operating income was JPY 7.8 billion and 13% increase year-on-year, and the operating income margin was 11.7%. When it comes to HDD heads, the sales volumes have declined by 9% year-on-year. On the other hand, when it comes to nearline, the head for the data center have improved its mix. Also, we could push enough the average price for the HDD head, and the set had almost a flat.
Also, for the HDD suspensions, it decreased the sales volumes too, but the micro- DSA type, this is a higher added value products, have more sales. This improvement in mix will just pushed up the average price and the sales is almost a flat. On the other hand, assembly of the hard disk drive is the business, the sales volumes have decreased, and we have lost some revenues here in HDDs head suspensions. Overall, we have a minus net sales. When it comes to profits, pushed up average price. Industrial application for that wind power generations have declined in sales, so that's why. Also, mix have decelerated. Let me talk about Energy Application Products.
Due to, again, the segment recombinations, we have revised last year's performance, JPY 700 million and more, and JPY 19.1 billion more for the operating incomes. Now, JPY 145.4 billion of net sales and JPY 24.6 billion operating income. It's 16.3% increase year-on-year of the revenues and 1.2% increase in the profit. For the secondary batteries, the sales through that major customer in China have been favorable and increased a lot. Also, the sales for the secondary battery for the notebook PC and the tablet have also pushed up and are both net sales and profits. On the other hand, I put all the slowdown of the demands of the smartphone, have become conspicuous in the middle of the third quarter.
Due to that production adjustments, the materials of the cobalt, the raw materials, have declined, and they have some timeline. Before that, we have to pass on to that portion to the product price. Actually, the delay in realize these effects of the declining raw materials. This timeline have caused the specific loss between the selling price and the raw materials. It pushed down that profit. When it comes to that, also, we have some bad impacts for the sales decline in China for this industrial equipment-related business. Next, let me talk about the quarterly results by segment on a quarter, both the net sales and the operating income. I'd like to talk about the factors of the change. First of all, Passive Component segments. The sales have declined by JPY 5.4 billion from the Q2, a 4.8% decline.
TVs, the smartphone, the industrial equipments, also home electronic price, all these markets have, all, have not been going well. When it comes to the ceramic capacitors, went up dramatically and dropped in the smartphone, electric, also circuit protection components. It has declined in industrial equipments. When it comes to the Passive Components operating income, it has declined by JPY 1.7 billion, declined from the quarter-on-quarter basis, from Q2, 10.4% decrease. For the ceramic capacitors, have still maintained a very high profitability, but the major reason of this minus and impact is inductor and high-frequency products. Sensor Application Products. The net sales was declined by JPY 900 million, 4.4% decline. For the temperature and pressure sensors, and almost flat from Q2. On the other hand, magnetic sensors have dramatically declined for the smartphone markets, and MEMS sensor have increased for the smartphones.
On the other hand, for the application for the drone and game consoles have been struggling. When it comes to operating income, almost flat, just like the temperature and pressure sensors. When it comes to magnetic sensors, and although sales declined, but we maintained that and profits. For MEMS sensors, that now JPY 1.4 billion, before that the m-commerce and the M&A cost have just declined, and they have pushed up JPY 200 million, but now they will have more loss due to the decrease of the sales. Overall, the Sensor Application Products and JPY 900 million is the minus impact on the profit. The Magnetic Application Products sales have declined by JPY 9 billion from Q2 and 11.9% of decline.
Hard disk drive head the sales, and due to that, the shipment index have declined from 97 in the Q2 to 81. That's a 17% of drop. This is the major reason of that sales decline. With this 16% decline, and now the revenues decline of 15%. Also, for the hard disk drive suspensions and the sales volumes of suspensions have dropped by 13%. When it comes to the sales of the magnets, the application for the industrial and equipment have been slowed down, that will lead to that minus gross on the sales. When it comes to the Magnetic Application Products, the operating income have increased by JPY 6.9 billion from Q2. Now, the JPY 4.7 billion, this is impaired loss in the magnet that have occurred in Q2.
If we dissect it on an operating basis, it's a margin of increase is JPY 2.2 billion. When it comes HDD head and suspensions, now we have incremental profits due to the improvement of mix and the average price, but in the magnets, we have to shrink the loss due to that decrease in impaired loss. For Energy Application Products, the sales have declined by JPY 9.4 billion, 6.1% quarter-on-quarter from Q2. The secondary battery business have been vastly affected by the sales in the slowdown of the China for the smartphone and mobile equipments, and also for the sales and the gaming consoles also have vastly affected. Industrial equipment, the power supply has been flat. Operating incomes declined from JPY 33.3 billion- JPY 24.6 billion from the Q2, a JPY 8.7 billion decline.
Due to the sales decline of the secondary battery, on top of that, also, the decrease, that is the marginal profits, due to that deficit time lag of that declining raw materials and the cost, that passed on to the prices onto the products. Also based on that we have started the production adjustments after November due to the slowdown in the smartphone. These in all have the minus impact. Let me talk about breakdown of operating income changes. This is the totally -JPY 700 million is the changes, due to that incremental sales on the capacitor and secondary battery and the improvements of that HDD head end suspensions and improvement of mix, JPY 6.5 billion positive. On the other hand, the sales reduction have the minus of a negative impact of JPY 4.6 billion.
The rationalization and cost reduction efforts have the positive JPY 3.1 billion. After that, we have about JPY 500 million of the restructuring after the push up. For that expansion of the secondary battery business and also the enhancement and the developments of the sensor business have been pushed up. That is the SG&A by JPY 6.5 billion. This will be the minus impact. When it comes to the reduction of one-time, the cost for the M&A had a positive of JPY 600 million, due to the fluctuation of the currency, -JPY 300 million. All in all, -JPY 700 million is the change in operating income. Let me talk about the consolidated results up to the third quarter of March 2019. Net sales was JPY 1.0727 trillion, 11.2% of the increase year-on-year.
Operating income was JPY 94.9 billion at 17.2%, from the year earlier, 22.1% increase. Income before income tax was JPY 88.8 billion. The net income was JPY 63.5 billion. That is 21.4% and the funds to be gross and year-on-year. We have the record high and the recognitions in the sales of an income before income tax, and the net income. Let me talk about the revision of full year forecast. As I mentioned earlier, from the middle of the Q3, we have the deterioration of the orders from the middle of the Q3, we needed to revised downwardly, that is the full year forecast we announced on October 31st the last time. I would like to explain about this downward revision of the full year forecast.
For the sales, the last time for not only for smartphone, but automotive, industrial equipment, all these sales have declined from JPY 1.42 trillion decreased by the JPY 50 billion to JPY 1.37 trillion. Operating income, due to this decline in sales, from JPY 120 billion, JPY 10 billion less, to JPY 110 billion. There is no change in the income before income taxes and the net income. When it comes to dividends and JPY 80 in the first half year also, there is no change because they paid JPY 80 to the second half and the annual dividend payments will be JPY 160. The assumption of the foreign exchange rates in the Q4 is JPY 100, JPY 108 to the dollar, the JPY 124 to euro. This is the change due to the more the high yen appreciation.
When it comes CapEx, based on this, the change in orders, and we now probe into and review again in details about this and all the plan, and now reduce it by JPY 20 billion from the last forecast. It will be downward to the JPY 190 billion , but there's no any In the total CapEx plan and the mid-term business plan, there's no other change it. For the depreciation, amortization, and the R&D expenses, there's no any change in the difference. That's all my presentation. Thank you very much.