Last checked at 30 Jul 2014 14:21
30 July 2014 | |||
MARUWA CO., LTD. | |||
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN | |||
Consolidated financial results for the first quarter of Fiscal 2014 | |||
MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal 2014 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 | ||
2013 | 2014 |
| |
Net sales | 7,713 | 7,516 | -2.6% |
Operating income | 828 | 450 | -45.6% |
Income before income taxes | 977 | 564 | -42.3% |
Net income | 679 | 358 | -47.3% |
Net income per share: |
| JPY |
|
Basic | 55.10 | 28.98 | -47.4% |
Diluted | 55.04 | 28.97 | -47.4% |
(2) Summary of consolidated financial condition | |||
|
|
| |
As of 31 March | As of 30 June | Change % | |
2013 | 2014 |
| |
Total assets | 49,569 | 48,213 | -2.7% |
Total net assets | 40,016 | 40,205 | 0.5% |
Equity ratio | 80.7% | 83.4% | 2.7% |
JPY | |||
Total net assets per share | 3,239.88 | 3,255.25 |
|
| |||
II. Dividends | |||
| JPY per share | ||
Fiscal 2013 | Fiscal 2014 | ||
| (forecast) | ||
Interim | 17 | 18 | |
Year-end | 17 | 18 | |
Total | 34 | 36 | |
*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. | |||
Ⅲ. Outlook for the fiscal 2014 | |||
The forecast figures for business results and dividends announced in 13 May 2014 are changed on half year. | |||
million JPY | |||
Half year | Full year | ||
Net sales | 15,600 | 36,500 | |
Operating income | 1,180 | 4,300 | |
Net income | 780 | 2,700 | |
Net income per share | 63.16 | 218.62 | |
Review of Operations
1. Review of Operations
In this consolidated cumulative first quarter, it has gradually risen on growing expectations of the United States economic recovery due to a rising trend of capital investment and personal consumption. The European financial market turmoil has also regained stability and generally recovered. Meanwhile, emerging markets including China and South-East Asian countries has been under an uncertain condition because of concerns over slowdown in growth and frequent political unrest.
In the Japanese economy, market has generally recovered due to improvement of income environment by turnaround of corporate performance, depreciation of the yen and rising stock prices led by economic and fiscal policy of 'Abenomics'. However, the economic condition has still been uncertain because of reverse effect caused by a last-minute surge in demand due to the consumption tax hike, slowdown growth of export due to a stagnation of emerging markets and a high level price of raw materials from yen depreciation.
Under the uncertain market condition, the MARUWA Group's business results during this quarter has stayed firm especially in ceramic products for power modules related to energy-savings and environment which are one of our differentiated products in the ceramic components division. On the other hand, in the lighting equipment division, the plans of construction period will be delayed after the second half of the fiscal year and it seems to be difficult to achieve the prior forecast. This is because of soaring of personnel expense and material price due to the increase of demand for construction (i.g. reconstruction demand for Tohoku and facility maintenance for Tokyo Olympics).
The forecast of this fiscal year, however, remains unchanged from the prior forecast because it is expected to continue to steadily increase in the ceramic components division.
As a result, our consolidated sales were 7,516 million yen (decrease 2.6% year on year). Our operating income was 450 million yen (decrease 45.6% year on year). Ordinary profit was 550 million yen (decrease 42.2% year on year). Net income was 358 million yen (decrease 47.3% year on year).
2.Operating Results by Business Division
The Ceramic Components Division
The total sales for this business segment was 5,637 million yen (up 10.8% year on year).
Markets related to energy-saving and environment are still brisk and the sales of ceramic products for HEV and LED remained strong.
Lighting Equipment Division
The total sales for this business segment was 1,879 million yen (decrease 28.4% year on year).
The recording of sales and profits will be delayed after the second quarter because construction plans were delayed while orders were increased. An operating loss was 316 million yen (compared with an operating profit 37 million yen of the previous fiscal year).
Regarding profits, we are further strengthening the structure of YAMAGIWA and it steadily produces results. We will continue to develop and expand sales of ceramic LED modules and lighting equipment.
Review of Operations | ||||
Review of operating results by segment | ||||
|
| JPY million | ||
1st Quarter | 1st Quarter | |||
1 April - 30 June | 1 April - 30 June | |||
2013 | 2014 | |||
Ceramic Components: |
|
|
|
|
Net sales | 5,088 | 5,637 | ||
Operating income |
| 1,014 |
| 1,012 |
Lighting Equipment: | ||||
Net sales | 2,626 | 1,879 | ||
Operating income |
| 37 |
| (316) |
Total: | ||||
Net sales | 7,713 | 7,516 | ||
Operating income |
| 1,052 |
| 695 |
|
|
|
| |
Elimination: | ||||
Net sales |
| -- |
| -- |
Operating income |
| (224) |
| (245) |
Consolidated: | ||||
Net sales |
| 7,713 |
| 7,516 |
Operating income |
| 828 |
| 450 |
3. Financial Condition
Total assets as of the end of this first quarter were 48,213million yen, decrease 2.7％ from the end of last fiscal year. Total liabilities were 8,007 million yen, decrease 16.2% from the end of last fiscal year. Total net assets were 40,205 million yen ,increase 0.5% from the end of last fiscal year.
4. Outlook for FY2014 ending 31th March 2015
In the lighting equipment division, the plans of construction period will be delayed after the second half of the fiscal year and it seems to be difficult to achieve the prior forecast. This is because of soaring of personnel expense and material price due to the increase of demand for construction (i.g. reconstruction demand for Tohoku and facility maintenance for Tokyo Olympics).
The forecast of this fiscal year, however, remains unchanged from the prior forecast because it is expected to continue to steadily increase in the ceramic components division.
JPY million | ||||||
|
|
| Half year | Full year | ||
business division | First quarter | Before | After | Before | After | |
Net sales | Ceramic components | 5,637 | ― | 11,000 | 23,200 | 24,000 |
Lighting equipment | 1,879 | ― | 4,600 | 13,300 | 12,500 | |
total | 7,516 | 16,000 | 15,600 | 36,500 | 36,500 | |
operating income | Ceramic components | 1,012 | ― | 2,020 | 4,400 | 4,700 |
Lighting equipment | △316 | ― | △350 | 900 | 610 | |
total (after elimination) | 450 | 1,680 | 1,180 | 4,300 | 4,300 | |
The forecast figures for business results and dividends announced in 13 May 2014 are changed on half year.
Consolidated Balance Sheet | ||
| JPY million | |
1st Quarter | (Reference) | |
As of 30 June | As of 31 March | |
2014 | 2014 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 13,425 | 13,362 |
Trade notes and accounts receivable | 8,055 | 8,870 |
Electronically recorded monetary claims-operating | 335 | 374 |
Inventories: | 6,436 | 6,025 |
Deferred tax assets | 461 | 439 |
Other current assets | 617 | 726 |
Allowance for doubtful accounts | (15) | (15) |
Total current assets | 29,314 | 29,782 |
Property, plant & equipment: | ||
Land | 3,514 | 3,512 |
Buildings & structures | 4,642 | 4,981 |
Machinery & equipment | 6,093 | 6,169 |
Other | 555 | 543 |
Construction in progress | 1,050 | 1,539 |
Total property, plant & equipment | 15,853 | 16,744 |
Goodwill | 644 | 716 |
Other | 411 | 410 |
Total Intangible assets | 1,055 | 1,126 |
Investment & other assets: | ||
Total investments & other assets | 1,990 | 1,917 |
Total assets | 48,213 | 49,569 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 3,038 | 3,639 |
Current portion of long-term debt | 470 | 445 |
Accrued income taxes | 166 | 896 |
Accrued bonus | 237 | 436 |
Accrued bonus to directors | 2 | 10 |
Notes payable for property acquisitions | 353 | 453 |
Other | 1,941 | 1,727 |
Total current liabilities | 6,208 | 7,605 |
Long-term liabilities: | ||
Long-term debt | 1,034 | 1,159 |
Diferrred tax liabilities | 239 | 175 |
Provision for environmental measures | 26 | 26 |
Other | 500 | 587 |
Total long-term liabilities | 1,799 | 1,948 |
Total liabilities | 8,007 | 9,554 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 8,647 | 8,647 |
Capital surplus | 11,947 | 11,947 |
Retained earnings | 19,520 | 19,372 |
Treasury stock, at cost | (47) | (47) |
Total shareholders' equity | 40,067 | 39,919 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | 79 | 48 |
Foreign currency translation adjustments | 56 | 45 |
Total valuation and translation adjustments | 135 | 94 |
A subscription warrant and Minority stockholders share | 3 | 3 |
Total shareholders' equity | 3 | 3 |
Total net assets | 40,205 | 40,016 |
Total liabilities and net assets | 48,213 | 49,569 |
Consolidated Statements of Income | ||
| JPY million | |
1st Quarter | 1st Quarter | |
1 April - 30 June | 1 April - 30 June | |
2013 | 2014 | |
Net sales | 7,713 | 7,516 |
Cost of sales | 4,913 | 5,157 |
Gross profit | 2,801 | 2,359 |
Selling, general & administrative | 1,973 | 1,909 |
expenses | ||
Operating income | 828 | 450 |
Other income (expenses): | ||
Interest & dividend income | 10 | 8 |
Interest expenses | (3) | (3) |
Rent income | 24 | 22 |
Rent expenses on real estates for investments | (14) | (8) |
Foreign exchange gain (loss), net | 75 | 74 |
Gain on sales of noncurrent assets | - | 0 |
Compensation income | 65 | - |
Subsidy income | - | 755 |
Loss on disposal or sales of property, plant and equipment | (12) | (2) |
Loss on valuation of golf club membership | - | - |
Loss on reduction of noncurrent assets | - | (738) |
Provision for environmental measures | (26) | - |
Other, net | 31 | 7 |
Other income (expenses), net | 150 | 114 |
Income before income taxes | 977 | 564 |
Income taxes: | ||
Current | 204 | 93 |
Deferred | 94 | 113 |
Total income taxes | 298 | 206 |
Minority interests in income | 0 | 0 |
Net income | 679 | 358 |