Last checked at 7 Aug 2009 12:31
7 August 2009
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the first quarter of Fiscal 2010
MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal 20109 - 30 June 2009> 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 | ||
| 2008 | 2009 | ||
| Net sales | 4,764 | 2,952 | -38.0% |
| Operating income | 195 | (72) | -- |
| Income before income taxes | 244 | (12) | -104.9% |
| Net income | 132 | (22) | -115.2% |
| Net income per share: | JPY | ||
| Basic | 12.25 | （2.04） | -- |
| Diluted | -- | -- | -- |
(2) Summary of consolidated financial condition
| JPY million | ||
| As of 30 June 2009 | (Reference) | |
| As of 31 March 2009 | ||
| Total net assets | 28,096 | 28,749 |
| Total assets | 25,372 | 25,284 |
| Equity ratio | 90.3% | 87.9% |
| JPY | ||
| Shareholders' equity per share | 2366.18 | 2358.54 |
II. Dividends
| JPY per share | ||
| Fiscal 2009 | Fiscal 2010 | |
| (forecast) | ||
| Interim | 14 | 14 |
| Year-end | 14 | 14 |
| Annual | 28 | 28 |
III. Outlook for the fiscal 2009 9 - 31 March 2010>
The forecast figures for business results and dividends announced in 8 May 2009 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
The Japanese economy in this first quarter has begun recovering from the world wide recession, although it remains weaker than it was at the same period last year. This recovery is, in part, due to the dissolving of inventory adjustments in the semiconductor and automotive markets.
The world economy, with the exception of China, is still suffering despite governments having implemented strong economic stimulus measures.
In these circumstances, demand for the digital services market and for environmentally friendly hybrid cars has increased in Asian countries, including China. Because of this, turnover for this first quarter were 2,952 million yen, up from the last quarter. Similarly, operating loss was 72 million yen, due to increase demand and to restructuring countermeasures, including closing and merging factories and offices and reducing costs and inventory.
2. Operating Results by Business Sector
The Ceramic Components Sector
Total sales of this business segment was 2,748 million yen. This is up from the same period last year. Operating loss was 100 million yen. There was a sign of upward momentum, though costs due to rapid increase in production caused some stress to production productivity.
Circuit Ceramics
Total sales of the Circuit Ceramics division for this first quarter decreased 35.7% to 1,201 million yen from the last quarter of the previous year. This was due to an increase in orders of Alumina substrate for the chip resistors market in China and South East Asia, as well as to an increase in orders for power module substrate for hybrid cars in Japan.
Machinery Ceramics
Total sales for the Machinery Ceramics division for this first quarter decreased by 59.5% to 471 million yen from the last quarter of the previous year. The downturn of the semiconductor equipment market influenced the sales of quartz glass products.
Radio Frequency Products
Total sales of the Radio Frequency Products division for this first quarter increased 16.8% to 405 million yen from the last quarter of the previous year. Upward movement of the new 3G mobile system market in China influenced the turnover of these products.
EMC Components
Total sales of the Machinery Ceramics division for this first quarter decreased by 38.3% to 671 million yen from the last quarter of the previous year. Upward demand in the digital devices market, for example for PCs and flat screen televisions in China, Southeast Asia and Korea, influenced turnover in this area.
Lighting Equipment segment
Total sales of the Machinery Ceramics division for this first quarter was 204 million yen and operating loss was 41 million yen. Turnover for LED lighting devices has increased consistently in the public utilities markets. We are continuing to press forward with the development of new LED lighting products.
| Review of Operations | |||||
| Review of operating results by segment | |||||
|
|
| JPY million | |||
| 1st Quarter | 1st Quarter | ||||
| 1 April - 30 June | 1 April - 30 June | ||||
| 2008 | 2009 | ||||
| Ceramic Components: |
|
|
|
| |
| Net sales | 4,607 | 2,748 | |||
| Operating income |
| 386 |
| 100 | |
| Lighting Equipment: | |||||
| Net sales | 157 | 204 | |||
| Operating income |
| (63) |
| (41) | |
| Total: | |||||
| Net sales | 4,764 | 2,952 | |||
| Operating income |
| 323 |
| 59 | |
|
|
|
|
| ||
| Elimination: | |||||
| Net sales |
| -- |
| -- | |
| Operating income |
| (128) |
| (131) | |
| Consolidated: | |||||
| Net sales |
| 4,764 |
| 2,952 | |
| Operating income |
| 195 |
| (72) | |
| Quarterly sales results of Ceramic Components segment by product division | |||||
| JPY million | |||||
| For year ended 31 March |
| ||||
| 2008 |
|
|
| 2009 | |
| 1Q | 2Q | 3Q | 4Q | 1Q | |
| Circuit Ceramics | 1,868 | 1,907 | 1,239 | 813 | 1,201 |
| Machinery Ceramics | 1,164 | 1,116 | 865 | 473 | 471 |
| RF Products | 487 | 529 | 506 | 355 | 405 |
| EMC Components | 1,087 | 1,254 | 708 | 545 | 671 |
| Total | 4,606 | 4,806 | 3,318 | 2,186 | 2,748 |
3. Financial Condition
Total assets as of the end of this first quarter were 28,097 million yen, down 2.3 percent from the end of last fiscal year due especially to a decrease in current assets. Inventory assets decrease 290 million from the end of last fiscal year due to the improvement of production lead time. Total liabilities, especially due to a decrease in accounts payable, decreased 740 million yen to 2,725 million yen from the previous year-end. Total net assets increased 88 million yen to 25,372 million yen because of a decrease of retained earning caused by dividend payments. As a result, capital asset ratio became 90.3 percent
Capital expenditure in this quarter amounted to 245 million yen. Depreciation costs were 396 million yen.
Cash and cash equivalents at the end of this first quarter were 7,563 million yen.
Cash flows from operating activities was 934 million yen, increase 568 million yen compared to last fiscal year. The main reason for the increase cash was due to the decrease of accounts receivable. Cash flows from investment activities was 342 million yen. The main reason was due to the payment for the acquisition of tangible fixed assets. Cash flows financing activities was 147 million yen, due to the decrease of retained earning for dividend paid.
| Consolidated Balance Sheet | ||
|
| JPY million | |
| 1st Quarter | (Reference) | |
| As of 30 June | As of 31st March | |
| 2009 | 2009 | |
| ASSETS | ||
| Current assets: | ||
| Cash & deposits | 8,036 | 7,505 |
| Trade notes and accounts receivable | 3,461 | 4,304 |
| Inventories: | ||
| Merchandise and finished goods | 963 | 1,105 |
| Work-in-process | 778 | 746 |
| Raw materials | 1,037 | 1,218 |
| Deferred tax assets | 144 | 156 |
| Other current assets | 245 | 264 |
| Allowance for doubtful accounts | (7) | (8) |
| Total current assets | 14,657 | 15,290 |
| Property, plant & equipment: | ||
| Land | 3,177 | 3,160 |
| Buildings & structures | 7,420 | 7,370 |
| Machinery & equipment | 12,103 | 11,944 |
| Other | 2,793 | 2,826 |
| Construction in progress | 489 | 443 |
| Total property, plant & equipment | 25,982 | 25,743 |
| Less, accumulated depreciation | (14,402) | (14,035) |
| Net property, plant & equipment | 11,580 | 11,708 |
| Investment & other assets: | ||
| Total investments & other assets | 1,859 | 1,750 |
| Total assets | 28,096 | 28,748 |
| JPY million | ||
| JPY million | ||
| 1st Quarter | (Reference) | |
| As of 30 June2008 | As of 31st March 2008 | |
| LIABILITIES | ||
| Current liabilities: | ||
| Trade notes & accounts payable | 955 | 1,352 |
| Current portion of long-term debt | 5 | 5 |
| Accrued income taxes | 34 | 30 |
| Accrued bonus | 154 | 241 |
| Accrued bonus to directors | 2 | 3 |
| Other | 944 | 1,180 |
| Total current liabilities | 2,094 | 2,811 |
| Long-term liabilities: | ||
| Long-term debt | 124 | 125 |
| Negative goodwill] | 43 | 57 |
| Other | 463 | 472 |
| Total long-term liabilities | 630 | 654 |
| Total liabilities | 2,724 | 3,465 |
| NET ASSETS | ||
| Shareholders' equity: | ||
| Common stock | 6,710 | 6,710 |
| Capital surplus | 9,747 | 9,747 |
| Retained earnings | 11,078 | 11,252 |
| Treasury stock, at cost | (736) | (742) |
| Total shareholders' equity | 26,799 | 26,967 |
| Valuation and translation adjustments: | ||
| Net unrealized gains(losses)on available-for-sale securities | (93) | (201) |
| Foreign currency translation adjustments | (1,334) | (1,482) |
| Total valuation and translation adjustments | (1,427) | (1,683) |
| Total net assets | 25,372 | 25,284 |
| Total liabilities and net assets | 28,096 | 28,749 |
| Consolidated Statements of Income | ||
|
| JPY million | |
| 1st Quarter | 1st Quarter | |
| 1 April - 30 June | 1 April - 30 June | |
| 2008 | 2009 | |
| Net sales | 4,764 | 2,952 |
| Cost of sales | 3,592 | 2,298 |
| Gross profit | 1,172 | 654 |
| Selling, general & administrative | 977 | 726 |
| expenses | ||
| Operating income | 195 | (72) |
| Other income (expenses): | ||
| Interest & dividend income | 14 | 13 |
| Interest expenses | (1) | 0 |
| Rent income | 29 | 30 |
| Rent expenses on real estates for investments | (13) | (12) |
| Foreign exchange gain (loss), net | 8 | 20 |
| Amortization of negative goodwill | 21 | 14 |
| Gain on sales of property, plant and equipment | 12 | 2 |
| Loss on disposal or sales of property, plant and equipment | (5) | (15) |
| Loss on valuation of inventories | (28) | - |
| Other, net | 12 | 8 |
| Other income (expenses), net | 49 | 60 |
| Income before income taxes | 244 | (12) |
| Income taxes: | ||
| Current | 54 | 11 |
| Deferred | 58 | (3) |
| Total income taxes | 112 | 8 |
| Net income | 132 | (20) |
| 7. Consolidated Statement of Cash Flows | JPY million |
|
| For year ended | For year ended | |
| 30th June2008 | 30th June2009 | |
| Cash flows from operating activities: | ||
| Income before income taxes | 244 | (12) |
| Adjustments for: | ||
| Depreciation | 475 | 396 |
| Amortization of negative goodwill | (21) | (14) |
| Decrease in allowance for doubtful accounts | 40 | (2) |
| Gain on disposal or sales of property, plant & equipment | (7) | 13 |
| Interest & dividend income | (17) | (15) |
| Foreign exchange (gain) loss | 0 | (14) |
| Decrease (increase) in trade notes & accounts receivable | 384 | 860 |
| Increase in inventories | (198) | 303 |
| Decrease in trade notes & accounts payable | (273) | (412) |
| Other | (210) | (174) |
| Sub-total | 417 | 929 |
| Interest & dividend income received | 20 | 15 |
| Interest expenses paid | (1) | |
| Income taxes paid | (70) | (8) |
| Net cash provided by operating activities | 366 | 936 |
| Cash flows from investment activities: | ||
| Payments into time deposits | (146) | (18) |
| Proceeds from withdrawal of time deposits | 2 | 0 |
| Payments for purchase of property, plant & equipment | (797) | (397) |
| Proceeds from sales of property, plant & equipment | 30 | 49 |
| Payments for purchase of investment securities | (51) | (118) |
| Payments for purchase of intangible assets | (6) | (1) |
| Other | (6) | 143 |
| Net cash used in investing activities | (974) | (342) |
| Cash flows from financing activities: | ||
| Payments of long-term debt | (1) | -1 |
| Cash dividends paid | (108) | -150 |
| Payments for purchase of treasury stock | (78) | 4 |
| Net cash used in financing activities | (187) | (147) |
| Effect of exchange rate changes on cash & cash equivalents | 64 | 56 |
| Net increase (decrease) in cash & cash equivalents | (731) | 503 |
| Cash and cash equivalents at beginning of year | 6,146 | 7062 |
| Increase in cash and cash equivalents | ||
| from newly consolidated subsidiary | 10 | 0 |
| Cash and cash equivalents at end of year | 5,425 | 7,565 |
| Segment Information | ||||||
| (1) business segments | ||||||
| JPY million | ||||||
| For year ended 31 March 2009 | ||||||
| Ceramic Components | Lighting Equipment | Total | Eliminations or corporate | Consolidated | ||
| Net sales: |
|
| ||||
| External customers | 2,748 | 204 | 2,952 | -- | 2,952 | |
| Inter-segment | 6 | -- | 6 | (6) | -- | |
| Total net sales | 2,754 | 204 | 2,958 | (6) | 2,952 | |
| Operating income (loss) | 100 | (41) | 59 | (131) | (72) | |
| (2) Geographic segments | ||||||
| JPY million | ||||||
| For year ended 31 March 2009 | ||||||
| Japan | Asia | Europe & America | Total | Eliminations or corporate | Consolidated | |
| Net sales: | ||||||
| External customers | 2,355 | 487 | 110 | 2,952 | -- | 2,952 |
| Inter-segment | 141 | 176 | 2 | 319 | (319) | -- |
| Total net sales | 2,496 | 663 | 112 | 3,271 | (319) | 2,952 |
| Operating income | 125 | (52) | (9) | 64 | (136) | (72) |
| (3) Net overseas sales by customer's geographic location | ||||||
| JPY million | ||||||
| For year ended 31 March 2009 | ||||||
| Asia | Europe | Other | Total | |||
| Overseas sales | 993 | 189 | 94 | 1,276 | ||
| Consolidated net sales |
|
|
| 2,952 | ||
| Percentage (%) | 33.6% | 6.4% | 3.2% | 43.2% | ||
| *Countries are divided in geographical vicinity. | ||||||
| *Principal countries or jurisdictions in each geographic segment are as follows: | ||||||
| Asia: Malaysia, Taiwan, Korea, China,and India | ||||||
| Europe: Germany and the United Kingdom | ||||||
| Other: The United States | ||||||