Last checked at 29 Jul 2010 09:54
29-July-2009
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the first quarter of Fiscal 2011
MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal 2011 as follows;
I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
|
|
| JPY million |
|
|
| 1st Quarter | 1st Quarter | Change % |
|
| 1 April - 30 June | 1 April - 30 June |
|
|
| 2009 | 2010 |
|
| Net sales | 2,952 | 4,587 | 55.4% |
| Operating income | (72) | 634 | -% |
| Income before income taxes | (12) | 554 | -% |
| Net income | (20) | 375 | -% |
|
|
|
|
|
| Net income per share: |
| JPY |
|
| Basic | (2.04) | 34.90 | -% |
| Diluted | - | -- | -- |
(2) Summary of consolidated financial condition
|
| As of 31 March | As of 30 June |
|
| 2009 | 2010 |
| Total assets | 30,689 | 30,241 |
| Total net assets | 26,561 | 26,506 |
| Equity ratio | 86.5% | 87.6% |
|
|
| JPY |
| Total net assets per share | 2,470.94 | 2,464.31 |
II. Dividends
|
|
| JPY per share |
|
| Fiscal 2010 | Fiscal 2011 |
|
| (forecast) | |
| Interim | 14 | 15 |
| Year-end | 14 | 15 |
| Annual | 28 | 30 |
III. Outlook for the fiscal 2011
The forecast figures for business results and dividends announced in 27 April 2010 were not changed.
*Cautionary statements: the above forecasts are forward-looking statements involving risks and uncertainties. Due to a number of factors, actual results may differ significantly from these estimates. Review of Operations
1. Review of Operations
In this first quarter, there are strong indications that the world economy is recovering from the global recession. This recovery is in part due to strong market expansion in emerging countries, including China, as well as to individual governments having implemented strong economic stimulus measures. However, because of unstable employment, sluggish personal consumption, deflation and the appreciation of the yen, there is still some uncertainty in the outlook of the both the Japanese and the world economy.
In these circumstances, demand for digital services market items, such as PCs and flat panel televisions, and for environmentally friendly hybrid cars has increased in Asian countries, particularly China.
Because of these factors, Maruwa's turnover for this first quarter was 4,587 million yen, an increase of 55.4% from the previous quarter. Similarly, our operating profit was 634 million yen, compared to a 72 million loss last year. This improvement has been due to increased demand and to restructuring countermeasures, including closing and merging factories and offices and reducing costs and inventory.
2. Operating Results by Business Division
The Ceramic Components Division
There is strong demand from China for ceramic substrates, EMC components and thin film circuit substrates, and from Asia for digital consumer products. There is also a large demand for hybrid cars, which use ceramic substrate for power modules.
The first quarter sales total for the Ceramic Components Division was 4,360 million yen. This is a 58.7% increase over the same period last year, a sign of upward momentum. The operating profit was 785 million yen. This exceeded expectations, and was due to improved productivity, cost reduction measures and to the contribution of new product offerings with high added value.
Lighting Equipment Division
Turnover for LED lighting devices has increased consistently in the public utilities markets, and Maruwa is continuing to press forward with the development of new LED lighting products. The total sales for the Lighting Equipment Division for this first quarter was 228 million yen, with an operating loss of 16 million yen.
Operating results by business segment
| Review of operating results by segment |
|
| ||
|
|
|
|
|
|
|
|
|
|
| JPY million |
|
| 1st Quarter | 1st Quarter | ||
|
| 1 April - 30 June | 1 April - 30 June | ||
|
| 2009 | 2010 | ||
| Ceramic Components: |
|
|
|
|
| Net sales |
| 2,748 |
| 4,360 |
| Operating income |
| 100 |
| 785 |
|
|
|
|
|
|
| Lighting Equipment: |
|
|
|
|
| Net sales |
| 204 |
| 228 |
| Operating income |
| (41) |
| (16) |
|
|
|
|
|
|
| Total: |
|
|
|
|
| Net sales | 2,952 | 4,588 | ||
| Operating income |
| 59 |
| 769 |
|
|
|
|
|
|
| Elimination: |
|
|
|
|
| Net sales |
| -- |
| -- |
| Operating income |
| (131) |
| (135) |
|
|
|
|
|
|
| Consolidated: |
|
|
|
|
| Net sales |
| 2,952 |
| 4,588 |
| Operating income |
| (72) |
| 634 |
Quarterly sales results of Ceramic Components segment by product division
3. Financial Condition
Total assets as of the end of this first quarter were 30,241 million yen, down 1.5％from the end of last fiscal year . This reflected that sales from the Lighting Equipment segment tend to be posted at fiscal year-end. Total liabilities decreased 393 million yen to 3,735million yen from the previous year-end. Total net assets decreased 54 million yen to 26,506 million yen because of an increase in foreign currency translation adjustments.
Cash and cash equivalents at the end of this first quarter were 8,385million yen.
Net income before income taxes was 553 million yen, and depreciation was 370 million yen. As a result, net cash provided from operating activities was 118 million yen.
Net cash used in investing activities was 380 million yen due especially to payments for purchase of property, plant and equipment, 267 million yen.
Net cash used in financing activities was 142 million yen, mainly used for dividends paid by the parent company, 150 million yen.
Consolidated Balance Sheet
|
|
| JPY million |
|
| 1st Quarter | (Reference) |
|
| As of 30 June | As of 31st March |
|
| 2010 | 2010 |
| ASSETS |
|
|
| Current assets: |
|
|
| Cash & deposits | 8,924 | 9,305 |
| Trade notes and accounts receivable | 5,413 | 5,314 |
| Inventories: | 2,921 | 2728 |
| Deferred tax assets | 223 | 294 |
| Other current assets | 182 | 114 |
| Allowance for doubtful accounts | (11) | (12) |
| Total current assets | 17,652 | 17,743 |
|
|
|
|
| Property, plant & equipment: |
|
|
| Land | 3,154 | 3,161 |
| Buildings & structures | 3,865 | 3,941 |
| Machinery & equipment | 3,453 | 3,488 |
| Other | 284 | 280 |
| Construction in progress | 182 | 314 |
| Total property, plant & equipment | 10,938 | 11,184 |
| Less, accumulated depreciation |
|
|
| Net property, plant & equipment | 10,938 | 11,184 |
|
|
|
|
| Investment & other assets: |
|
|
| Total investments & other assets | 1,651 | 1,762 |
|
|
|
|
| Total assets | 30,241 | 30,689 |
|
|
|
|
| LIABILITIES |
|
|
| Current liabilities: |
|
|
| Trade notes & accounts payable | 1,573 | 1,727 |
| Current portion of long-term debt | 5 | 5 |
| Accrued income taxes | 137 | 265 |
| Accrued bonus | 158 | 313 |
| Accrued bonus to directors | 2 | 11 |
| Notes payable for property acquisitions | 369 | 352 |
| Other | 974 | 918 |
| Total current liabilities | 3,218 | 3,591 |
|
|
|
|
| Long-term liabilities: |
|
|
| Long-term debt | 119 | 120 |
| Diferrred tax liabilities | 138 | 158 |
| Other | 260 | 259 |
| Total long-term liabilities | 517 | 537 |
|
|
|
|
| Total liabilities | 3,735 | 4,128 |
|
|
|
|
| NET ASSETS |
|
|
| Shareholders' equity: |
|
|
| Common stock | 6,710 | 6,710 |
| Capital surplus | 9,747 | 9,747 |
| Retained earnings | 12,275 | 12,051 |
| Treasury stock, at cost | (678) | (689) |
| Total shareholders' equity | 28,054 | 27,819 |
|
|
|
|
| Valuation and translation adjustments: |
|
|
| Net unrealized gains(losses)on available-for-sale securities | (58) | (128) |
| Foreign currency translation adjustments | (1,504) | (1,140) |
| Total valuation and translation adjustments | (1,562) | (1,268) |
|
|
|
|
| A subscription warrant and Minority stockholders share | 14 | 10 |
| Total shareholders' equity | 14 | 10 |
| Total net assets | 26,506 | 26,561 |
| Total liabilities and net assets | 30,241 | 30,689 |
Consolidated Statement of Income
|
|
| JPY million |
|
| 1st Quarter | 1st Quarter |
|
| 1 April - 30 June | 1 April - 30 June |
|
| 2009 | 2010 |
| Net sales | 2,952 | 4,587 |
| Cost of sales | 2,298 | 3,033 |
| Gross profit | 654 | 1,554 |
| Selling, general & administrative | 726 | 920 |
| expenses |
|
|
| Operating income | (72) | 634 |
| Other income (expenses): |
|
|
| Interest & dividend income | 13 | 9 |
| Interest expenses | 0 | 1 |
| Rent income | 30 | 29 |
| Rent expenses on real estates for investments | (12) | (12) |
| Foreign exchange gain (loss), net | 20 | 27 |
| Amortization of negative goodwill | 14 | - |
| Gain on sales of property, plant and equipment | 2 | 0 |
| Loss on disposal or sales of property, plant and equipment | (15) | (9) |
| Loss on valuation of inventories securities | - | (137) |
| Other, net | 8 | 12 |
| Other income (expenses), net | 60 | (80) |
| Income before income taxes | (12) | 554 |
|
|
|
|
| Income taxes: |
|
|
| Current | 11 | 121 |
| Deferred | (3) | 58 |
| Total income taxes | 8 | 179 |
| Net income | (20) | 375 |
Consolidated Statement of Cash Flows
|
| JPY million |
|
|
| For year ended | For year ended |
|
| 30th June | 30th June |
|
| 2009 | 2010 |
| Cash flows from operating activities: |
|
|
| Income before income taxes | (12) | 554 |
| Adjustments for: |
|
|
| Depreciation | 396 | 370 |
| Amortization of negative goodwill | (14) | - |
| Decrease in allowance for doubtful accounts | (2) | (2) |
| Gain (Loss)on Valuation investment ｓecurities | - | 137 |
| Gain on disposal or sales of property, plant & equipment | 13 | 8 |
| Interest & dividend income | (15) | (10) |
| Foreign exchange (gain) loss | (14) | 7 |
| Decrease (increase) in trade notes & accounts receivable | 860 | (167) |
| Increase in inventories | 303 | (243) |
| Decrease in trade notes & accounts payable | (412) | (126) |
| Other | (174) | (161) |
| Sub-total | 929 | 367 |
| Interest & dividend income received | 15 | 13 |
| Interest expenses paid |
| (1) |
| Income taxes paid | (8) | (261) |
| Net cash provided by operating activities | 936 | 118 |
|
|
|
|
| Cash flows from investment activities: |
|
|
| Payments into time deposits | (18) | (137) |
| Payments for purchase of property, plant & equipment | (397) | (269) |
| Proceeds from sales of property, plant & equipment | 49 | 2 |
| Payments for purchase of investment securities | (118) | (48) |
| Payments for purchase of intangible assets | (1) | (1) |
| Other | 143 | 72 |
| Net cash used in investing activities | (342) | (381) |
|
|
|
|
| Cash flows from financing activities: |
|
|
| Payments of long-term debt | -1 | -1 |
| Cash dividends paid | -150 | -150 |
| Payments for purchase of treasury stock | 4 | 9 |
| Net cash used in financing activities | (147) | (142) |
|
|
|
|
| Effect of exchange rate changes on cash & cash equivalents | 56 | -73 |
| Net increase (decrease) in cash & cash equivalents | 503 | (478) |
| Cash and cash equivalents at beginning of year | 7062 | 8864 |
| Increase in cash and cash equivalents |
|
|
| from newly consolidated subsidiary | - | - |
| Cash and cash equivalents at end of year | 7,565 | 8,386 |