Maruwa Regulatory News (MAW)

8 Aug 2007 07:26

Maruwa Co Ld08 August 2007 8 August 2007 MARUWA CO., LTD.3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN Consolidated financial results for the first quarter of Fiscal 2008 MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal2008 (1 April 2007 - 30 June 2007) as follows; I. Summary of Consolidated Financial Results (1) Summary of consolidated operating results JPY million 1st Quarter 1st Quarter Change % (Reference) 1 April - 30 June 1 April - 30 June For year ended 2006 2007 31 March 2007 Net sales 4,878 4,719 -3.3% 21,062Operating income 420 359 -14.5% 1,924Income before income taxes 519 411 -20.8% 1,912Net income 357 272 -23.8% 1,334 Net income per share: JPY Basic 32.55 25.12 -22.8% 122.04 Diluted 32.36 25.03 -22.7% 121.45 (2) Summary of consolidated financial condition JPY million As of 31 Dec. As of 31 Dec. Change % (Reference) 2006 2007 As of 31 March 2006 Total net assets 26,624 28,383 6.6% 27,907Total liabilities and net 32,006 33,616 5.0% 33,872assetsEquity ratio 83.2% 84.4% +1.2% 82.4% JPYShareholders' equity per 2,429.96 2,625.41 8.0% 2,572.66share II. Outlook for the fiscal 2008 (1 April 2007 - 31 March 2008) The forecast figures announced in 11 May 2007 is not changed. \* The financial statements are prepared in conformity with the accounting principles generally accepted in Japan. *Consolidated subsidiaries: 10 companies (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai) Trading Co., Ltd. , MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.) Review of Operations 1. Review of Operations Consolidated net sales for the first quarter of this fiscal year were 4,719million yen, 3.3% down from the same period last year. A large decrease ofsales in the Lighting Equipment business caused the decline in consolidated netsales, even though the sales of the Ceramic Components business increased 3.5%compared to the first quarter of the previous year. Operating income for the first quarter was 359 million yen, down 14.5% fromthe same period last year. The profit was weighed down as a result of thetransfer and reorganization of manufacturing equipment mainly in the MachineryCeramics division. Net income was 272 million yen, down 23.8% from the sameperiod last year due to a loss of 94 million yen on sales and disposal ofequipment. The results of this first quarter stated above were just as we expected at thebeginning of this fiscal year; the outlook for the current fiscal year is notchanged from the forecast figures announced on 11 May 2007. 2. Operating results by business segment Ceramic Components segment Circuit Ceramics Total sales of the Circuit Ceramics division for this first quarter decreased4.8% to 1,692 million yen from the first quarter of the previous year. This division was slow in recovery from the adjustment phase of the ceramiccomponents market in the previous fourth quarter period. The sales of mainstayceramic substrates for chip resistors decreased due to this market adjustmentwhich continued to affect our operation in the first quarter. Machinery Ceramics Total sales of the Machinery Ceramics division were 1,325 million yen, up 15.4%from the same period last year. The sales of quartz glass products have continued to increase since theprevious year due to a solid demand in the semiconductor-equipment relatedmarket. Radio Frequency Total sales from the Radio Frequency division increased 16.5% to 474 million yencompared to the same period last year. Dielectric ceramics extended sales channels in the North America; automotiveceramic substrates began to report sales from this year. EMC Components Total sales of the EMC Components division were 1,041 million yen, down 0.5%from the first quarter of the previous year. This division was affected by a slow recovery of the electronic componentsmarket while the sales of EMI filters and inductors increased especially forthin screen TVs. Lighting Equipment segment Total sales from the Lighting Equipment segment decreased 62.5% to 187 millionyen compared to the same period last year. The sales posted a big drop comparedto the sales in the previous first quarter which included a large amount oforders originally occurred in the year before last. Operating results by business segment JPY million 1st Quarter 1st Quarter 1 April - 30 June 1 April - 30 June 2006 2007 Ceramic Components: Net sales 4,379 4,532Operating income 662 596 Lighting Equipment:Net sales 499 187Operating income (61) (71) Total:Net sales 4,878 4,719Operating income 601 525 Elimination:Net sales -- --Operating income (181) (166) Consolidated:Net sales 4,878 4,719Operating income 420 359 Quarterly sales results of Ceramic Components segment by product division JPY million For year ended 31 March 2007 2008 1Q 2Q 3Q 4Q 1Q Circuit Ceramics 1,778 1,908 2,227 1,690 1,692Machinery Ceramics 1,148 1,189 1,354 1,255 1,325Radio Frequency Products 407 354 504 370 474EMC Components 1,046 1,013 1,069 1,029 1,041Total 4,379 4,464 5,154 4,344 4,532 Financial Condition Total liabilities and net assets as of the end of this first quarter were 33,616million yen, down 256 million yen from the end of last year due especially to adecrease in current assets. This reflected the sales trend of the LightingEquipment that sales are likely to occur at the end of fiscal year. Totalliabilities decreased 732 million yen from the previous year end. Total netassets increased 476 million yen because of an increase in retained earnings. Capital expenditure in this quarter amounted to 910 million yen. Depreciationcosts were 411 million yen. New consolidation Maruwa Korea Co., Ltd. and Maruwa (Shanghai) Trading Co., Ltd. have beenincluded in the consolidated results since this first quarter. Consolidated Balance Sheet JPY million 1st Quarter 1st Quarter (Reference) As of 30 June As of 30 June Change % As of 31st March 2006 2007 2007 ASSETS Current assets: Cash & deposits 7,180 6,577 -8.4% 6,593Trade notes & accounts 6,560 6,734 2.7% 7,797receivableInventories 2,940 4,020 36.7% 3,559Other 368 574 56.0% 672Total current assets 17,048 17,905 5.0% 18,621 Property, plant & equipment:Net property, plant & equipment 12,192 13,214 8.4% 12,726 Investment & other assets:Total investments & other assets 2,766 2,497 -9.7% 2,525 Total assets 32,006 33,616 5.0% 33,872 LIABILITIESCurrent liabilities:Trade notes & accounts payable 1,880 1,815 -3.5% 2,289Other 2,227 2,384 7.0% 2,594Total current liabilities 4,107 4,199 2.2% 4,883 Long-term liabilities:Long-term debt 151 138 -8.6% 135Accrued retirement benefits 165 -- -- --Other 959 896 -6.6% 947Total long-term liabilities 1,275 1,034 -18.9% 1,082 Total liabilities 5,382 5,233 -2.8% 5,965 NET ASSETSShareholders' equity:Common stock 6,710 6,710 -- 6,710Capital surplus 9,747 9,747 -- 9,747Retained earnings 10,743 11,724 9.1% 11,521Treasury stock, at cost (254) (623) -- (537)Total shareholders' equity 26,946 27,558 2.3% 27,441 Valuation and translation adjustments:Net unrealized gains on 0 15 -- 8 available-for-sale securitiesForeign currency translation (322) 810 -- 458adjustmentsTotal valuation and translation (322) 825 -- 466adjustments Total net assets 26,624 28,383 6.6% 27,907Total liabilities and net assets 32,006 33,616 5.0% 33,872 Consolidated Statement of Income JPY million 1st Quarter 1st Quarter (Reference) 1 April - 30 June 1 April - 30 June Change % For year ended 2006 2007 31 March 2007 Net sales 4,878 4,719 -3.3% 21,062Cost of sales 3,438 3,352 -2.5% 15,003Gross profit 1,440 1,367 -5.1% 6,059Selling, general & 1,020 1,008 -1.2% 4,135administrative expensesOperating income 420 359 -14.5% 1,924Other income (expenses):Interest & dividend income 10 17 70.0% 52Interest expenses (2) (1) -- (5)Foreign exchange gain (loss), 49 (10) -- (196)netOther, net 42 46 9.5% 137Other income (expenses), net 99 52 -47.5% (12)Income before income taxes 519 411 -20.8% 1,912 Income tax expenses 162 139 -14.2% 578 Net income 357 272 -23.8% 1,334 This information is provided by RNS The company news service from the London Stock Exchange