Last checked at 29 Jan 2010 09:24
29 January 2010
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the third quarter of Fiscal 2010
MARUWA CO., LTD. today announced its consolidated financial results for the second quarter of Fiscal 2010 as follows;
I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
|
| JPY million |
| |
|
| 3rd Quarter | 3rd Quarter | Change % |
| 2008 | 2009 |
| |
| Net sales | 13,493 | 10,560 | -21.7% |
| Operating income | 617 | 643 | -62.6% |
| Income before income taxes | 863 | 745 | -13.7% |
| Net income | 476 | 619 | -21.5% |
| Net income per share: |
| JPY | |
| Basic | 44.28 | 57.69 | |
| Diluted | - | -- |
(2) Summary of consolidated financial condition
|
| JPY million | |
|
| As of 31 Dec. | As of 31st March |
| 2009 | 2009 | |
| Total assets | 29,009 | 28,749 |
| Total net assets | 25,699 | 25,284 |
| Equity ratio | 88.6% | 87.9% |
| JPY | JPY | |
| Shareholders' equity per share | 2,391.68 | 2,358.54 |
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 2010 9 - 31 March 2010>
The forecast figures for business results and dividends announced in 8 May 2009 are changed as bellow. Net sales are increased because of an increase in orders much more than we had expected. Incomes are also increased due to restructuring countermeasures, including closing and merging factories and offices and reducing costs and inventory,
| JPY million | ||
|
|
| Full year |
| Net sales | 15,000 | |
| Operating income | 1,100 | |
| Net income | 900 | |
| Net income per share | 83.78 | |
Review of Operations
1. Review of Operations
The Japanese economy in the third quarter has been recovering from the world-wide recession. The world economy, also, is beginning to show signs of improvement.
However, it is still difficult to foresee the situation for the both the Japanese economy and the world economy for the next half year due to rising unemployment rates, decreased consumer spending and other problems.
In Maruwa's business sector, demand for the digital products market in Asian countries, including China, and for environmentally friendly hybrid cars has increased in Japan. Because of this, our turnover for these three quarters was 10,560 million yen, which is much more than we had expected. Similarly, operating profit was improved by 643 million yen, which is also much more than we had anticipated. These results were due to an increase in orders 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
The total sales for this business segment was 9,672 million yen, and our operating profit was 1,057 million yen, with sales increasing every month. Strong sales results, together with cost-cutting measures, resulted in an overall increase in profit.
Circuit Ceramics
Total sales of the Circuit Ceramics division for these three quarters was 4,078 million yen, and this third quarter increased 7.9% from the second quarter of this 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 these three quarters was 1,924 million yen. The upturn of the semiconductor equipment market, including LED products and Memory for PCs influenced the sales of quartz glass products.
Radio Frequency Products
Total sales of the Radio Frequency Products division for these three quarters was remained stable as 1,408 million yen. The new 3G mobile system market in China influenced the good turnover of these products.
EMC Components
Total sales of the EMC Components Division for these three quarters was 2,262 million yen, and this third quarter increased by 11.3% from the second quarter of this 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 Lighting Equipment segment for these three quarters was 887 million yen and operating loss was 33 million yen. Turnover for LED lighting devices has increased consistently in the public utilities markets in Japan. We are continuing to press forward with the development of new LED lighting products.
|
|
|
| JPY million | |
|
| 3rd Quarter | 3rd Quarter | ||
|
|
| 1 April- 31 Dec. |
| 1 April- 31 Dec. |
|
| 2008 | 2009 | ||
| Ceramic Components: |
|
|
|
|
| Net sales | 12,730 | 9,673 | ||
| Operating income |
| 1,125 |
| 1,057 |
| Lighting Equipment: | ||||
| Net sales | 763 | 887 | ||
| Operating income |
| (127) |
| (33) |
| Total: | ||||
| Net sales | 13,493 | 10,560 | ||
| Operating income |
| 998 |
| 1,024 |
| Elimination: | ||||
| Net sales |
| -- |
| -- |
| Operating income |
| (381) |
| (381) |
| Consolidated: | ||||
| Net sales |
| 13,493 |
| 10,560 |
| Operating income |
| 617 |
| 643 |
Quarterly sales results of Ceramic Components segment by product division
| For year ended 31 March |
|
|
| ||||
| 2008 |
|
|
| 2009 |
|
| |
| 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |
| Circuit Ceramics | 1,868 | 1,907 | 1,239 | 813 | 1,201 | 1,384 | 1,493 |
| Machinery Ceramics | 1,164 | 1,116 | 865 | 473 | 471 | 753 | 700 |
| RF Products | 487 | 529 | 506 | 355 | 405 | 506 | 497 |
| EMC Components | 1,087 | 1,254 | 708 | 545 | 671 | 753 | 838 |
| Total | 4,606 | 4,806 | 3,318 | 2,186 | 2,748 | 3,396 | 3,528 |
3. Financial Condition
Total assets as of the end of this third quarter were 29,009 million yen, up 0.9 percent from the end of last fiscal year due especially to an increase in current assets. Inventory assets decrease 357 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 109 million yen to 3,310 million yen from the previous year-end.
Total net assets increased 415 million yen to 25,699 million yen. As a result, capital asset ratio became 88.6 percent
Cash and cash equivalents at the end of this third quarter were 7,899 million yen.
Cash flow from operating activities was 1,900 million yen, a decrease of 338 million yen compared to the last fiscal year. The main reason for the decreased cash flow was the increase of accounts receivable, which was due to an increase in orders. Cash flow from investment activities was 817 million yen. This was due primarily to payment for the acquisition of tangible fixed assets. Cash flow financing activities were 243 million yen.
| Consolidated Balance Sheet | ||
|
|
| JPY million |
|
| 3rd Quarter | (Reference) |
|
| As of 31 Dec. | As of 31st March |
|
| 2009 | 2009 |
| ASSETS |
|
|
| Current assets: | ||
| Cash & deposits | 8,404 | 7,505 |
| Trade notes and accounts receivable | 4,655 | 4,304 |
| Inventories: | ||
| Merchandise and finished goods | 972 | 1,105 |
| Work-in-process | 789 | 746 |
| Raw materials | 951 | 1,218 |
| Deferred tax assets | 147 | 156 |
| Other current assets | 138 | 264 |
| Allowance for doubtful accounts | (10) | (8) |
| Total current assets | 16,046 | 15,290 |
| Property, plant & equipment: | ||
| Land | 3,165 | 3,161 |
| Buildings & structures | 7,464 | 7,370 |
| Machinery & equipment | 12,007 | 11,944 |
| Other | 2,770 | 2,826 |
| Construction in progress | 707 | 443 |
| Total property, plant & equipment | 26,113 | 25,744 |
| Less, accumulated depreciation | (14,826) | (14,035) |
| Net property, plant & equipment | 11,287 | 11,709 |
| Investment & other assets: | ||
| Total investments & other assets | 1,676 | 1,750 |
| Total assets | 29,009 | 28,749 |
| LIABILITIES | ||
| Current liabilities: | ||
| Trade notes & accounts payable | 1,242 | 1,352 |
| Current portion of long-term debt | 5 | 5 |
| Accrued income taxes | 137 | 30 |
| Accrued bonus | 158 | 241 |
| Accrued bonus to directors | 4 | 3 |
| Other | 1,209 | 1,180 |
| Total current liabilities | 2,755 | 2,811 |
| Long-term liabilities: | ||
| Long-term debt | 122 | 125 |
| Negative goodwill] | 15 | 57 |
| Other | 418 | 472 |
| Total long-term liabilities | 555 | 654 |
| Total liabilities | 3,310 | 3,465 |
| NET ASSETS | ||
| Shareholders' equity: | ||
| Common stock | 6,710 | 6,710 |
| Capital surplus | 9,747 | 9,747 |
| Retained earnings | 11,566 | 11,252 |
| Treasury stock, at cost | (693) | (742) |
| Total shareholders' equity | 27,330 | 26,967 |
| Valuation and translation adjustments: | ||
| Net unrealized gains(losses)on available-for-sale securities | (163) | (201) |
| Foreign currency translation adjustments | (1,473) | (1,482) |
| Total valuation and translation adjustments | (1,636) | (1,683) |
| A subscription warrant and Minority stockholders share | 5 | |
| Total net assets | 25,699 | 25,284 |
| Total liabilities and net assets | 29,009 | 28,749 |
| Consolidated Statements of Income | ||
|
|
| JPY million |
|
| 3rd Quarter | 3rd Quarter |
|
| 1 April- 31 Dec. | 1 April- 31 Dec. |
| 2008 | 2009 | |
| Net sales | 13,493 | 10,560 |
| Cost of sales | 10,265 | 7,660 |
| Gross profit | 3,228 | 2,900 |
| Selling, general & administrative | 2,611 | 2,257 |
| expenses | ||
| Operating income | 617 | 643 |
| Other income (expenses): | ||
| Interest & dividend income | 50 | 45 |
| Interest expenses | (3) | (2) |
| Rent income | 86 | 86 |
| Rent expenses on real estates for investments | (45) | (48) |
| Securities operation profit | - | 1 |
| Foreign exchange gain (loss), net | 122 | (19) |
| Amortization of negative goodwill | 62 | 43 |
| Gain on sales of property, plant and equipment | 56 | 3 |
| Loss on valuation of inventories securities | (5) | - |
| Loss on disposal or sales of property, plant and equipment | (53) | (46) |
| Loss on valuation of inventories | (28) | - |
| Investment securities clearance profit and loss | - | 23 |
| Extra retirement benefits | (23) | (16) |
| Other, net | 27 | 32 |
| Other income (expenses), net | 246 | 102 |
| Income before income taxes | 863 | 745 |
| Income taxes: | ||
| Current | 169 | 171 |
| Deferred | 218 | (45) |
| Total income taxes | 387 | 126 |
| Minority stockholders profit and loss | - | 0 |
| Net income | 476 | 619 |
| 7. Consolidated Statement of Cash Flows | ||
|
|
| JPY million |
|
| 3rd Quarter | 3rd Quarter |
|
| 1 April- 31 Dec. | 1 April- 31 Dec. |
|
| 2008 | 2009 |
| Cash flows from operating activities: | ||
| Income before income taxes | 863 | 745 |
| Adjustments for: | ||
| Depreciation | 1,469 | 1,211 |
| Amortization of negative goodwill | (62) | (43) |
| Decrease in allowance for doubtful accounts | 37 | (6) |
| Loss on sales of investment securities | 3 | (24) |
| Gain on disposal or sales of property, plant & equipment | (3) | 43 |
| Interest & dividend income | (50) | (44) |
| Foreign exchange (gain) loss | 111 | 6 |
| Decrease (increase) in trade notes & accounts receivable | 1,242 | (347) |
| Increase in inventories | (313) | 355 |
| Decrease in trade notes & accounts payable | (451) | (116) |
| Other | (467) | 138 |
| Sub-total | 2,379 | 1,918 |
| Interest & dividend income received | 52 | 48 |
| Interest expenses paid | (2) | (2) |
| Income taxes paid | (191) | (64) |
| Net cash provided by operating activities | 2,238 | 1,900 |
| Cash flows from investment activities: | ||
| Payments into time deposits | (347) | (55) |
| Proceeds from withdrawal of time deposits | 20 | - |
| Payments for purchase of property, plant & equipment | (1,545) | (995) |
| Proceeds from sales of property, plant & equipment | 296 | 81 |
| Payments for purchase of investment securities | (164) | (226) |
| Proceeds from sales of investment securities | 21 | 380 |
| Payments for purchase of intangible assets | - | (20) |
| Purchase of investments in subsidiaries | (10) | - |
| Insrease in intangible fixed assets | (6) | - |
| Other | (27) | 17 |
| Net cash used in investing activities | (1,762) | (818) |
| Cash flows from financing activities: | ||
| Payments of long-term debt | (4) | (4) |
| Proceeds from clearance of treasury stock | - | 45 |
| Cash dividends paid | (255) | (283) |
| Payments for purchase of treasury stock | (102) | 0 |
| Net cash used in financing activities | (361) | (242) |
| Effect of exchange rate changes on cash & cash equivalents | (410) | (3) |
| Net increase (decrease) in cash & cash equivalents | (295) | 837 |
| 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 | 5,861 | 7,899 |
| Segment Information | ||||||
| (1) business segments | ||||||
| JPY million | ||||||
| 3rd Quarter | ||||||
| Ceramic Components | Lighting Equipment | Total | Eliminations or corporate | Consolidated | ||
| Net sales: | ||||||
| External customers | 12,730 | 763 | 13,493 | -- | 13,493 | |
| Inter-segment | 20 | - | 20 | (20) | -- | |
| Total net sales | 12,750 | 763 | 13,513 | (20) | 13,493 | |
| Operating income (loss) | 1,125 | (127) | 998 | (381) | 617 | |
| JPY million | ||||||
| 3rd Quarter | ||||||
| Ceramic Components | Lighting Equipment | Total | Eliminations or corporate | Consolidated | ||
| Net sales: |
|
| ||||
| External customers | 9,673 | 887 | 10,560 | -- | 10,560 | |
| Inter-segment | 33 | 5 | 38 | (38) | -- | |
| Total net sales | 9,706 | 892 | 10,598 | (38) | 10,560 | |
| Operating income (loss) | 1,057 | (33) | 1,024 | (381) | 643 | |
| (2) Geographic segments | ||||||
| JPY million | ||||||
| 3rd Quarter | ||||||
| Japan | Asia | Europe & America | Total | Eliminations or corporate | Consolidated | |
| Net sales: | ||||||
| External customers | 10,179 | 2,300 | 1,014 | 13,493 | -- | 13,493 |
| Inter-segment | 897 | 1,120 | 1 | 2,018 | (2,018) | -- |
| Total net sales | 11,076 | 3,420 | 1,015 | 15,511 | (2,018) | 13,493 |
| Operating income | 629 | 323 | 51 | 1,003 | (386) | 617 |
| JPY million | ||||||
| 3rd Quarter | ||||||
| Japan | Asia | Europe & America | Total | Eliminations or corporate | Consolidated | |
| Net sales: | ||||||
| External customers | 8,658 | 1,602 | 300 | 10,560 | -- | 10,560 |
| Inter-segment | 348 | 795 | 35 | 1,178 | (1,178) | -- |
| Total net sales | 9,006 | 2,397 | 335 | 11,738 | (1,178) | 10,560 |
| Operating income | 957 | 91 | (9) | 1,039 | (396) | 643 |
| (3) Net overseas sales by customer's geographic location | ||||||
| JPY million | ||||||
| 3rd Quarter | ||||||
| Asia | Europe | Other | Total | |||
| Overseas sales | 4,774 | 486 | 560 | 5,820 | ||
| Consolidated net sales |
|
|
| 13,493 | ||
| Percentage (%) | 35.4% | 3.6% | 4.2% | 43.1% | ||
| JPY million | ||||||
| 3rd Quarter | ||||||
| Asia | Europe | Other | Total | |||
| Overseas sales | 3,531 | 527 | 430 | 4,488 | ||
| Consolidated net sales |
|
|
| 10,560 | ||
| Percentage (%) | 33.4% | 5.0% | 4.1% | 42.5% | ||
| *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 | ||||||
| END | ||||||