Last checked at 12 Feb 2013 10:27
12 February 2013 | ||||
MARUWA CO., LTD. | ||||
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN | ||||
Consolidated financial results for the third quarter of Fiscal 2013 | ||||
MARUWA CO., LTD. today announced its consolidated financial results for the second quarter of Fiscal 2013 as follows; | ||||
I. Summary of Consolidated Financial Results | ||||
(1) Summary of consolidated operating results | ||||
| JPY million |
| ||
3rd Quarter | 3rd Quarter | Change % | ||
1 April - 31 Dec. | 1 April - 31 Dec. | |||
2011 | 2012 |
| ||
Net sales | 16,102 | 15,849 | -1.6% | |
Operating income | 2,473 | 1,710 | -30.9% | |
Income before income taxes | 2,436 | 1,936 | -20.5% | |
Net income | 1,725 | 1,233 | -28.5% | |
Net income per share: |
| JPY |
| |
Basic | 150.80 | 100.19 | -33.6% | |
Diluted | 150.57 | 100.16 | -- | |
(2) Summary of consolidated financial condition | ||||
As of 31 March | As of 31 Dec. | Change % | ||
2012 | 2012 |
| ||
Total assets | 40,808 | 43,111 | 5.6% | |
Total net assets | 34,407 | 35,812 | 4.1% | |
Equity ratio | 84.2% | 83.0% | -1.2% | |
| JPY |
| ||
Total net assets per share | 2,793.23 | 2,906.94 |
| |
II. Dividends | ||||
| JPY per share | |||
Fiscal 2012 | Fiscal 2013 | |||
| (forecast) | |||
Interim | 15 | 15 | ||
Year-end | 15 | 15 | ||
Total | 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. | ||||
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*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 2013 | ||||
The forecast figures for business results and dividends announced in 26 April 2012 are changed. | ||||
\* The financial statements are prepared in conformity with the accounting principles generally accepted in Japan. | ||||
*Consolidated subsidiaries: 13companies. | ||||
Review of Operations
1. Review of Operations
In this third quarter, the growth of the world economy has slowed due to the expanded Eurozone debt problem and to the rapidly developing economies in emerging countries, including China, rapidly losing steam, and in spite of an indication of economic recovery in the United States.
Despite a strong automotive market and the need for the reconstruction of the Tohoku area, the Japanese economy still has some uncertainty in its outlook because of unstable employment, sluggish personal consumption, instability in electric power supply, deflation, the appreciation of the yen and diplomatic problems.
In this severe economic situation, the MARUWA Group's business results during this third quarter of this fiscal year were in line with our plans due to a strong demand for ceramic substrate for power modules, new products for smart phone devices and LED lighting.
As a result, our consolidated sales were15,849 million yen. (This is down 1.6% compared to the same period last year) Our operating income was 1,710 million yen. (This is down 30.9% compared to the same period last year) Ordinary profit was 1,990million yen (down 22.5%). Net income was 1,233 million yen (down 28.5%).
MARUWA acquired 100% of outstanding shares of Yamagiwa Corporation, which is one of the leading lighting solution companies in Japan. As a result of this share acquisition, Yamagiwa will become a consolidated subsidiary of the Company. By welcoming Yamagiwa as one of the core companies of the Group and utilizing its strong brand recognition and its position as a leading company in the area of lighting solutions, the Company aims to further expand its business base in the booming LED lighting market and enhance its global business growth.
2.Operating Results by Business Division
The Ceramic Components Division
The total sales for this business segment was 14,451 million yen. (This is down 2.6% compared to the same period last year).
The market for environment-related products, the power modules market and the smart phone market have remained strong.
Operating income was 2,265 million yen.
Lighting Equipment Division
The turnover was 1,398 million yen. This is a 11.0% increase over the same period last year. Operating profit was 82million yen . (This is increase 63.0% compared to the same period last year).
This improvement is due to a consistent increase in inquiries and orders for LED lighting devices in the public utilities markets. New types of products were very successful. MARUWA is continuing to press forward with the development and promotion of new LED lighting products.
forward with the development and promotion of new LED lighting products.
Review of Operations | |||||
Review of operating results by segment | |||||
| JPY million | ||||
| 3rd Quarter | 3rd Quarter | |||
1 April - 31 Dec. | 1 April - 31 Dec. | ||||
2011 |
| 2012 | |||
Ceramic Components: |
|
|
|
| |
Net sales | 14,843 | 14,451 | |||
Operating income |
| 2,955 |
| 2,265 | |
Lighting Equipment: | |||||
Net sales | 1,259 | 1,398 | |||
Operating income |
| 50 |
| 82 | |
Total: | |||||
Net sales | 16,102 | 15,849 | |||
Operating income |
| 3,005 |
| 2,347 | |
|
|
|
| ||
Elimination: | |||||
Net sales |
| -- |
| -- | |
Operating income |
| (532) |
| (637) | |
Consolidated: | |||||
Net sales |
| 16,102 |
| 15,849 | |
Operating income |
| 2,473 |
| 1,710 | |
3. Financial Condition
Total assets as of the end of this second quarter were 43,111million yen. This is a 5.6% increase over compared to the end of last fiscal year.
Total liabilities were 7,299 million yen. This is increase over to 14.0% compared to the previous year-end. Total net assets were 35,812 million yen. This is increase over to 4.1% compared to previous year-end. This is due to increase of funds, capital surplus and retained earnings by flotation. As a result, capital ratio is 83.0%
Consolidated Balance Sheet
| JPY million | |
2nd Quarter | (Reference) | |
As of 31 Dec. | As of 31 March | |
2012 | 2012 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 9,733 | 10,649 |
Trade notes and accounts receivable | 7,489 | 6,373 |
Inventories: | 5,795 | 5,591 |
Deferred tax assets | 128 | 219 |
Other current assets | 745 | 716 |
Allowance for doubtful accounts | (23) | (2) |
Total current assets | 23,867 | 23,546 |
Property, plant & equipment: | ||
Land | 3,621 | 3,789 |
Buildings & structures | 4,006 | 3,965 |
Machinery & equipment | 6,304 | 4,567 |
Other | 610 | 533 |
Construction in progress | 1,708 | 2,747 |
Total property, plant & equipment | 16,249 | 15,601 |
Intangible assets: | ||
Goodwill | 1,079 | - |
Other | 358 | 221 |
Total Intangible assets | 1,437 | 221 |
Investment & other assets: | 1,558 | 1,440 |
Total noncurrent assets | 19,244 | 17,262 |
|
| |
Total assets | 43,111 | 40,808 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 2,475 | 2,230 |
Current portion of long-term debt | 336 | 5 |
Accrued income taxes | 233 | 739 |
Accrued bonus | 199 | 322 |
Accrued bonus to directors | 2 | 14 |
Notes payable for property acquisitions | 404 | 1,457 |
Other | 1,549 | 1,270 |
Total current liabilities | 5,198 | 6,037 |
Long-term liabilities: | ||
Long-term debt | 776 | 111 |
Diferrred tax liabilities | 9 | 17 |
Provision for retirement benefits | 1,058 | - |
Other | 258 | 236 |
Total long-term liabilities | 2,101 | 364 |
Total liabilities | 7,300 | 6,401 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 8,647 | 8,647 |
Capital surplus | 11,909 | 11,906 |
Retained earnings | 16,374 | 15,510 |
Treasury stock, at cost | (134) | (141) |
Total shareholders' equity | 36,796 | 35,922 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | (7) | 13 |
Foreign currency translation adjustments | (1,009) | (1,562) |
Total valuation and translation adjustments | (1,016) | (1,549) |
A subscription warrant and Minority stockholders share | 32 | 34 |
Total shareholders' equity | 32 | 34 |
Total net assets | 35,812 | 34,407 |
Total liabilities and net assets | 43,111 | 40,808 |
Consolidated Statements of Income | ||
| JPY million | |
3rd Quarter | 3rd Quarter | |
1 April - 31 Dec. | 1 April - 31 Dec. | |
2011 | 2012 | |
Net sales | 16,102 | 15,849 |
Cost of sales | 10,791 | 11,387 |
Gross profit | 5,311 | 4,462 |
Selling, general & administrative | 2,838 | 2,752 |
expenses | ||
Operating income | 2,473 | 1,710 |
Other income (expenses): | ||
Interest & dividend income | 21 | 29 |
Interest expenses | (2) | (2) |
Rent income | 82 | 72 |
Rent expenses on real estates for investments | (37) | (39) |
Environmental expenses | - | (19) |
Foreign exchange gain (loss), net | 20 | 213 |
Stock issuance cost | (26) | - |
Gain on sales of property, plant and equipment | 12 | 3 |
Loss on disposal or sales of property, plant and equipment | (63) | (44) |
Loss on reduction of noncurrent assets | - | (207) |
State subsidy | - | 207 |
Loss on valuation of inventories securities | (80) | - |
Other, net | 36 | 13 |
Other income (expenses), net | (37) | 226 |
Income before income taxes | 2,436 | 1,936 |
Income taxes: | ||
Current | 711 | 585 |
Deferred | 0 | 118 |
Total income taxes | 711 | 703 |
Net income | 1,725 | 1,233 |