This is Yamanishi speaking. Thank you. Thank you for your precious time despite your busy schedule. We are here to explain the performance and the results for the fiscal year March 2018. First, allow me to go through the highlights for the third quarter. The sales were able to renew its record for three consecutive quarters since the beginning of the fiscal year. The third quarter revenue was up 5% Y-o-Y. Operating income was down 0.3%, slightly from last year. We are able to absorb JPY 10 billion plus, the impact from the partial transfer of the high-frequency components business. Though we had one-time expense for the third quarter, JPY 2.2 billion from the InvenSense acquisition. We did actually get on par to the third quarter actuals last year, which was a record high on a quarterly basis.
Passive components, Passive components had a sure growth, mainly driven by the capacitors and inductors, thanks to the still ongoing strong automotive and industrial equipment markets. We are currently enjoying a stable profitability of 10% plus operating income. Sensor Application Products, while leveraging its broad portfolio, are trying to find new applications. In the third quarter, TMR sensors expanded its sales, driven by the automotive products, as well as by the ICT marketplace. Contributed to our improved profitability. We have almost completed our evaluation on the goodwill in regard to the InvenSense acquisition. This time, we booked as much as JPY 1.2 billion in the quarter as the intangible fixed asset separated away from the goodwill, going back to the point of the acquisition. Magnetic Application Products, while HDD market has been moving almost within our expectations in terms of the total demand.
The hard disk drive, HDD head volume tends to decrease. Thanks to the improved product mix, the revenue moved as we had expected, resulting in a rather stable profit. As for the magnets and power supply products, thanks to the firm demand driven by the semiconductor manufacturing devices and robotics devices in the industrial machinery. The renewable energy-related demand are still going on. Resulted in the growth both in the sales and in the profit. We are so happy as for this result. Rechargeable batteries, our sales for smartphones continue to grow, and our tablet and the PC, the business actually grew firmly. Apps-related business expanded continuously following the second quarter, where both revenue and operating income renewed its record respectively. Allow me to give you the outline of the third quarter.
Net sales was JPY 341.1 billion, up JPY 16.3 billion, or 5% Y-o-Y basis. Operating income was JPY 32.4 billion, down JPY 100 million, or down 0.3%, almost the same level from the previous year. In the third quarter, we had a one-time expense of JPY 2.2 billion for the M&A. In substance, we overachieved the profit Y-o-Y basis in a big way. Operating income ratio was 9.5%. We transferred a part of the highly profitable high-frequency components business, we are able to offset its impact on profitability. Income before income tax was JPY 33.5 billion, up 4.4%. Net income for the quarter was JPY 2.8 billion or down 11.5%. May I remind you that we had additional tax expense of almost minus JPY 3.5 billion due to the tax reform in the U.S., giving us growth in profit ultimately. JPY 117.96 was the EPS we're able to confirm.
Average FX rate for the quarter was JPY 112.97 to a dollar. The Japanese yen became weaker by 3.5%. As for EUR, it was JPY 133. The yen depreciated by 13%. All in all, the FX had an impact of JPY 13.7 billion in net sales and JPY 1.6 billion in operating income, positive impacts. The FX sensitivity by the fluctuation of one yen on operating income was the same from the last time, JPY 1.2 billion vis-à-vis the US dollar and JPY 200 million to EUR. I would like to move on to the segments. Starting from the third quarter, we newly added a Sensor Application Products. As we have explained already, some product mix has changed. Actually, the JPY 1.4 billion is the impact, and also the revenue was JPY 4.9 billion impact.
Passive Components revenue was JPY 112.7 billion, down 21.2%, and operating income was JPY 12.3 billion, down 35.6%, giving us an operating income ratio being 10.9%. Ceramic capacitors, next. Thanks to the strong demand, continued to grow in the automotive market, improved product mix, and improved productivity. We really enjoyed a great increase in revenue, and the profit grew more than we had expected. Actually, we are able to achieve the higher than 10% level. Next, inductive devices. This segment was impacted by the decreased production volume by the Chinese smartphone major manufacturers. Yes. Particularly, ICT sales shows a decline in sales Y-o-Y basis. Having said that, when it comes to the automotive and industrial robotics and instrumentation and other industrial equipment, the verticals as well as the so-called white goods, those businesses are actually business good and gave us increase in the sales.
High-frequency components, excluding the transferred business. Previously, actually, we had Wi-Fi module business in place, but in the third quarter, that was gone. That pushing down our net sales. When it comes to the ceramic filter business, actually, we are able to grow both in revenue and profit and enjoy high-level profitability. Piezoelectric material products grew in sales for automotive, industrial equipment, whereas the camera module actuators for Chinese smartphone makers declined both in revenue and profit due to the reduced production on the customer side. With the impact from the transferred business of high-frequency components, actually, with an impact of JPY 45-plus billion in revenue and JPY 10-plus billion in operating income. We are able to offset the loss in the entire Passive Components segment effectively. Our operating profit being 10% and quite stabilized. We are making steady improvement in profitability.
Next, our Sensor Application Products. Due to the change in the product mix of the new segmentation, previous years actual revenue was JPY 10.5 billion, and operating income became negative JPY 1.5 billion. As for the, actually, we have the fixed asset depreciation. Now we went back to the point of M&A, actually, the JPY 1.9 million and one-time expense, put them together, actually JPY 2.2 billion. Now those are numbers actually we booked in the third quarter. The revenue in the automotive business world in the temperature and pressure sensors as well as magnetic sensors, actually, they grew, particularly in Europe and in Japan. Actually, 32%. TMR sensor, by the way, ICT business actually grew substantially. Sensor and Sensor Application Products segment as well, ICT accounts for about 30%, and automotive sales accounted for 40%. Industrial equipment accounts for about 30%.
I think we are enjoying really good balance among those segments.
Next, Magnetic Application Products. Due to partial recombinations of a product mix of the segment again, now the previous net sales was revised downwardly by JPY 4.7 billion and operating income, upwardly by JPY 2.2 billion. When it comes to business, the net sales is JPY 86.9 billion, 0.9% decline Y-o-Y, and operating income was JPY 8.3 billion and 18.6% of up Y-o-Y, and operating income margin was 9.6%. When it comes to the HDD head, on a volume basis, is a decline by 14% Y-o-Y. On the other hand, the product mix have improved. For example, nearline head have the more in volumes in the sales, so that's why. Due to the improvements of the sales mix, we can have an increase in average the selling prices.
Taking these all into considerations, for our total of the recording devices, now we can limit the margin of decline by 6%. Also we have the other positive effects of the consolidations of wafer bases, and then also the improvements of the fixed cost efficiency. When it comes to magnets, now the sales of the magnet for HDD have declined. On the other hand, we have a favorable business with, that's the wind power generations and industrial robots. That's why we could just make it, that's the loss, in half of the previous years. Now we have a steady improvements and profitability. When it comes to power supplies, and we have very good business and semiconductor manufacturing equipment, measuring equipment, as well as robotics markets. Now, the business has been very favorable and steady.
Now, the new product launch have contributed a lot for this and expansion of the sales. Now we have the clear, the double digits operating the profit margins, and with an increase in the revenues and the operating income. Next, Film Application Products. Yes. The net sales was JPY 105.9 billion, with the JPY 23.6 billion operating income. It was up 38.6% of the net sales and 45.7% of up on the operating income. Now we have a record high and both the net sales as well as operating income, and also we have a 22.3% of high profit margin. A business for the smartphones now have been expanding, exceeding the previous year's business. On top of that, now we have also the other, the good business on the PC, tablet, drone, and gaming devices. There's all the other than the smartphone applications.
We have a dramatic margin of increase in both the net sales and income. Let me talk about quarter-on-quarter. The segment growth from Q2 to Q3 for both net sales and the operating income. Passive Components, the business and the sales have increased by JPY 1.2 billion and 1.1% from Q2 to Q3. Ceramic capacitors have been very good for the automotive markets. On the other hand, aluminum and film capacitors have some negative impacts due to the seasonal factors in the European market. That has a slight decline from Q2. When it comes to inductive devices, the net sales declined by 0.5% from Q2 for the automotive markets and industrial equipment markets, and in the home appliances markets have been steady. On the other hand, the Chinese customers, the smartphone manufacturing have declined.
That in all, it is only a slight decline. The sales of the other passive components business was up by JPY 500 million and 1.6% of growth quarter-on-quarter. Our products have been increasing for the smartphone markets, but again, the Chinese smartphone manufacturers for the camera module actuators have declined, and all in all, it has only increased slightly on a quarter-on-quarter basis. The operating income of the passive components declined by JPY 100 million, 0.8% decline from Q2 is almost flat. When it comes to ceramic capacitors, we have dramatically increased the profit, but the inductive devices have been flat and also the profit also flat, and the camera module actuator has declined largely in terms of profit. That total is still flat.
The Sensor Application Products sales have increased by JPY 1.4 billion, 6.8% on a QoQ basis, and TMR sensor for ICT sales have increased. These are major factors. Operating income is the loss of JPY 2.2 billion. That is just a shrink in the profit. The major factor of this JPY 2.2 billion is the margin shrink of the loss, I am sorry. This also included that, and we have the decline of that. The one-time cost for the M&A. That is the main reason of the shrinking margin of the loss. For the Magnetic Application Products segments, the sales increased by JPY 1.3 billion, 1.5% of growth. When it comes to recording devices, the shipping index of HDD heads declined from 103 in Q2 to 89 in Q3.
That means that is about a 14% decline in the shipment index. On the other hand, we have incremental sales of nearline and also improvements of the mix. That would push up the average selling price, and we have JPY 100 million of increase in the net sales at 0.8% growth. The other Magnetic Application Products, the sales increased by JPY 900 million, 3.8% of growth. We have a steady business with the industrial equipment business, and the magnetic products have increased by 2% for the power supplies. New products also contribute by 4%. When it comes to Magnetic Application Products, the operating income increased by JPY 2.2 billion, 36.1% of growth on a quarter-on-quarter basis.
HDD heads have a favorable with the improvement of the mix, we have a very good yield on improvements and magnetic products. When it comes to power supplies, we have the volume increase that have a favorable, we have an expansion business of the highly profitable end products. Film Application Products. The sales of the segments was increased by JPY 2.4 billion, 2.3% growth quarter-on-quarter basis. We have reached the peaks for the smartphone sales, we have an incremental sales and also other than smartphone in other end products like tablet, PC have been favorable. When it comes to the operating incomes, Q2 at JPY 21.3 billion, in this Q3 we have JPY 23.6 billion. It's increased by JPY 2.3 billion from Q2.
Due to that, we have the increase of the marginal profits due to the top-line growth, on top of that, we have improvements of the product mix. Let me talk about the breakdown of the operating income changes. Minus JPY 100 million is the bottom line. First of all, with the change of sales, including utilizations and product mix, we have minus JPY 100 million, this is, we could absorb over JPY 10 billion of that negative impact through the transfer of the high-frequency products. JPY 4.7 billion of negative for the sales and price reductions, another JPY 3.1 billion due to the SGA expense increases. These are the total JPY 7.8 billion of negative impacts. We could absorb with JPY 7.6 billion of the restructuring cost reduction and the benefits from the restructures were JPY 800 million.
In total, JPY 8.4 billion could absorb the negative. Before that exchange fluctuations and the one-time cost. We could secure JPY 500 million of operating income. The depreciation would have the impact of JPY 1.6 billion plus, another one-time expenses of the minus JPY 2.2 billion, we'll be taking all this including. Bottom line is minus JPY 100 million. Let me talk about the consolidated, the business performance up to the nine months total. Net sales was JPY 964.7 billion, 6.7% growth year-on-year. On a total nine months basis, we have again, the all-time high and a record high in the net sales, just like we have in the last year. When it comes to operating incomes, we have a minus JPY 30 billion of the negative impacts due to the transfer of the high-frequency product business.
Due to this negative impact, we have about the decline of profits was only JPY 2.1 billion, that's the 2.7% minus. We could secure JPY 74.7 billion of operating incomes. Excluding this JPY 9.4 billion negative impacts, again, we have a all-time high operating income levels. The net income, we have a negative impacts of increasing taxation costs in the U.S. and the JPY 3.5 billion. Still, we have a JPY 52.3 billion of net income. That is a minus 8.4% year-on-year. Last of all, let me talk about the forecast of full year consolidated business performance. We did not change since that's an announcement since in the last October, the full year net sales is JPY 1,250 billion, operating incomes, JPY 85 billion, the net income before tax, JPY 88 billion, the net income would be JPY 60 billion.
Average and foreign exchange rate, there is again no change since the last time. JPY 108 to the US dollar and JPY 137 to EUR. In the dividends, JPY 70 in the second half and JPY 130 for year basic, there is not any change. When it comes to the net sales, we expect that, again, that is the good favorable market environments in the automotive and also in industrial equipment markets. On the other hand, when it comes to the smartphone markets, we are expecting some kind of decline in Q4 due to the seasonal factors, usually. On top of that, we still have some uncertainty in the demand in the market. That is why we try to make a forecast as conservative as possible.
When it comes to HDD head, now the sales of 2.5 inch HDD head we expect it to gradually decline. That is why the volume index is 89 in Q3. Back to Q4, we think that the index will be 77. We expect about the 13% decline is incorporated. When it comes to operating incomes and the cost for the investments and acquisitions, we already recognized JPY 10 billion in the forecast. Now due to that, the depreciation of the intangible assets due to the goodwill evaluations will additionally be included as JPY 1.2 billion in the Q3 and another JPY 500 million in Q4. When it comes to the Magnetic Application Products, mainly for that HDD head, we are going to maximize the supply chains of all these bases. We are going to spend about JPY 1 billion of structural reform costs.
That all and included. Taking all these additional costs that are included, we still have the forecast of JPY 85 billion of operating income. For the non-expenses, there is not any change in the forecast. The JPY 170 billion of CapEx and JPY 90 billion of appropriations and JPY 99 billion of R&D expenses. That is all my presentation. Thank you very much. Thank you.