Last checked at 28 Jul 2011 09:32
28 July 2011 | |||||
MARUWA CO., LTD. | |||||
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN | |||||
Consolidated financial results for the first quarter of Fiscal 2012 | |||||
MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal 2012 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 | ||||
2010 | 2011 |
|
| ||
Net sales | 4,587 | 5,355 | 16.7% | ||
Operating income | 634 | 993 | 56.6% | ||
Income before income taxes | 554 | 1,023 | 84.7% | ||
Net income | 375 | 687 | 83.2% |
| |
Net income per share: |
| JPY |
|
| |
Basic | 34.90 | 63.92 | 83.2% | ||
Diluted | - | -- | -- |
| |
(2) Summary of consolidated financial condition | |||||
|
|
|
| ||
As of 31 March | As of 30 June | Change % | |||
2011 | 2011 |
|
| ||
Total assets | 33,649 | 33,733 | 1.1% | ||
Total net assets | 28,105 | 28,428 | 0.2% |
| |
Equity ratio | 83.4% | 84.2% | 0.7% |
| |
JPY | |||||
Total net assets per share | 2,611.82 | 2,641.36 | 1.1% |
| |
II. Dividends | |||||
| JPY per share | ||||
Fiscal 2011 | Fiscal 2012 | ||||
| (forecast) | ||||
Interim | 15 | 15 | |||
Year-end | 15 | 15 | |||
Annual | 30 | 30 | |||
*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. | |||||
II. Outlook for the fiscal 2012 | |||||
The forecast figures for business results and dividends announced in 28 April 2011 are not changed. | |||||
\* The financial statements are prepared in conformity with the accounting principles generally accepted in Japan. | |||||
*Consolidated subsidiaries: 11companies. | |||||
Review of Operations
1. Review of Operations
In this first quarter, the world economy tended in general toward recovery due to improvement of US corporate performances and ongoing strong market expansion in emerging countries, including China. But on the other hand, the political instability in North Africa and the Middle East and the financial crisis in Euro zone nations triggered credit impairment. The emergence of energy problems related to the nuclear power station crisis in Japan also contributed to uncertainty in the global business market.
There are indications that the Japanese economy is steadily recovering from the devastating Tohoku Earthquake on March 11th, although radioactive pollution, electricity restriction and distrust of politicians exert a negative impact on the recovery of the economy.
The Maruwa Group is seeing an increase in demand for its electronic components, in both domestic and global markets. This is due to 1) strong consumer demand for digital electric items, particularly for smart phones in China and other Asian countries, 2) continuous growth of high power modules for environmentally-friendly HEV/HV, windmills and LED lighting, and 3) a recovery in the demand for semiconductor manufacturing equipment.
In these circumstances, because of an increased demand for ceramic substrate products for the electric items market and for quartz glass products for semiconductor manufacturing equipment, consolidated turnover for this quarter was 5,355 million yen. (This is up 16.7% compared to last year)
We have been improving production profitability in order to be able to take appropriate countermeasures against rapid changes in the market climate. This was achieved through improvement of production yield, lead time and cost reduction. As a result, our consolidated operating income was 993 million yen. (This is up 56.5% compared to last year) Income before income taxes was 1,023 million yen. (This is up 84.7% compared to last year). Net income was 687 million yen. (This is up 83.2% compared to last year)
2.Operating Results by Business Division
The Ceramic Components Division
The first quarter turnover was 5,124 million yen. This is a 17.5% increase over the same period last year.
The demand for ceramic substrate products, EMC component products and thin film circuit products has grown in the market of digital electric items, especially smart phones in China and other Asian countries and high power modules for environmentally friendly HEV/HV, windmills. Demand for quartz glass products for semiconductor manufacturing equipment has also increased.
Operation income was 1,199 million yen. This is up 50.0% compared to last year, and is due to improvement of production profitability and the addition of new high-value products.
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 turnover during this first quarter was 231 million yen. This is a 1.5% increase over the same period last year. Operating loss was 35 million yen.
Review of Operations | ||||
Review of operating results by segment | ||||
|
| JPY million | ||
1st Quarter | 1st Quarter | |||
1 April - 30 June | 1 April - 30 June | |||
2010 | 2011 | |||
Ceramic Components: |
|
|
|
|
Net sales | 4,360 | 5,124 | ||
Operating income |
| 799 |
| 1,199 |
Lighting Equipment: | ||||
Net sales | 228 | 231 | ||
Operating income |
| (16) |
| (35) |
Total: | ||||
Net sales | 4,587 | 5,355 | ||
Operating income |
| 784 |
| 1,164 |
|
|
|
| |
Elimination: | ||||
Net sales |
| -- |
| -- |
Operating income |
| (150) |
| (171) |
Consolidated: | ||||
Net sales |
| 4,587 |
| 5,355 |
Operating income |
| 634 |
| 993 |
3. Financial Condition
Total assets as of the end of this first quarter were 33,733 million yen, up 0.2％ 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 238 million yen to 5,306 million yen from the previous year-end. Total net assets increased 322 million yen to 28,428 million yen because of an increase in retained earnings.
Consolidated Balance Sheet
Consolidated Balance Sheet | ||
| JPY million | |
1st Quarter | (Reference) | |
As of 30 June | As of 31 March | |
2011 | 2011 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 8,154 | 8,923 |
Trade notes and accounts receivable | 6,271 | 6,540 |
Inventories: | 4,264 | 3,671 |
Deferred tax assets | 135 | 221 |
Other current assets | 299 | 311 |
Allowance for doubtful accounts | (12) | (12) |
Total current assets | 19,111 | 19,654 |
Property, plant & equipment: | ||
Land | 3,984 | 3,155 |
Buildings & structures | 4,115 | 3,782 |
Machinery & equipment | 3,604 | 3,494 |
Other | 415 | 384 |
Construction in progress | 886 | 1,525 |
Total property, plant & equipment | 13,004 | 12,340 |
Intangible Assets | 218 | 221 |
Net property, plant & equipment | 13,222 | 12,561 |
Investment & other assets: | ||
Total investments & other assets | 1,400 | 1,434 |
Total assets | 33,733 | 33,649 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 2,034 | 2,105 |
Current portion of long-term debt | 5 | 5 |
Accrued income taxes | 220 | 598 |
Accrued bonus | 171 | 345 |
Accrued bonus to directors | 2 | 22 |
Notes payable for property acquisitions | 754 | 669 |
Other | 1,546 | 1,229 |
Total current liabilities | 4,732 | 4,973 |
Long-term liabilities: | ||
Long-term debt | 115 | 116 |
Diferrred tax liabilities | 206 | 201 |
Other | 252 | 253 |
Total long-term liabilities | 573 | 570 |
Total liabilities | 5,305 | 5,543 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 6,710 | 6,710 |
Capital surplus | 9,747 | 9,747 |
Retained earnings | 14,276 | 13,750 |
Treasury stock, at cost | (679) | (679) |
Total shareholders' equity | 30,054 | 29,528 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | (62) | (50) |
Foreign currency translation adjustments | (1,598) | (1,401) |
Total valuation and translation adjustments | (1,660) | (1,451) |
A subscription warrant and Minority stockholders share | 34 | 29 |
Total shareholders' equity | 34 | 29 |
Total net assets | 28,428 | 28,106 |
Total liabilities and net assets | 33,733 | 33,649 |
Consolidated Statement of Income
| JPY million | |
1st Quarter | 1st Quarter | |
1 April - 30 June | 1 April - 30 June | |
2010 | 2011 | |
Net sales | 4,587 | 5,355 |
Cost of sales | 3,033 | 3,435 |
Gross profit | 1,554 | 1,920 |
Selling, general & administrative | 920 | 927 |
expenses | ||
Operating income | 634 | 993 |
Other income (expenses): | ||
Interest & dividend income | 9 | 8 |
Interest expenses | 1 | 0 |
Rent income | 29 | 27 |
Rent expenses on real estates for investments | (12) | (13) |
Foreign exchange gain (loss), net | 27 | 9 |
Gain on sales of property, plant and equipment | 0 | 8 |
Loss on disposal or sales of property, plant and equipment | (9) | (17) |
Loss on valuation of inventories securities | (137) | - |
Other, net | 12 | 8 |
Other income (expenses), net | (80) | 30 |
Income before income taxes | 554 | 1,023 |
Income taxes: | ||
Current | 121 | 238 |
Deferred | 58 | 98 |
Total income taxes | 179 | 336 |
Net income | 375 | 687 |