Last checked at 28 Oct 2010 09:12
28-October-2010
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the second quarter of Fiscal 2011
MARUWA CO., LTD. today announced its consolidated financial results for the second quarter of Fiscal 2011 as follows;
I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
| JPY million | |
2nd Quarter | 2nd Quarter | |
1 April - 30 Sep. | 1 April - 30 Sep. | |
2009 | 2010 | |
Net sales | 6,607 | 9,576 |
Operating income | 199 | 1,475 |
Income before income taxes | 295 | 1,353 |
Net income | 290 | 913 |
Net income per share: |
| JPY |
Basic | 27.07 | 84.98 |
Diluted | - | -- |
(2) Summary of consolidated financial condition
| JPY million | |
As of 31 March | As of 30 Sep. | |
2009 | 2010 | |
Total assets | 30,689 | 30,938 |
Total net assets | 26,561 | 27,049 |
Equity ratio | 86.5% | 87.4% |
JPY | ||
Total net assets per share | 2,470.94 | 2,514.37 |
II. Dividends
JPY per share | ||
Fiscal 2010 | Fiscal 2011 | |
(forecast) | ||
Interim | 14 | 15 |
Year-end | 14 | 15 |
Annual | 28 | 30 |
III. Outlook for the fiscal 2011
The forecast figures for business results announced in 27 April 2010 were changed with current trend.
*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
In this Second Quarter, though the appreciation of yen progressed rapidly due to credit impairment in the EU area, there are strong indications that the world economy is recovering from the global recession. This recovery is in part due to the strong market expansion in emerging countries, including China, as well as to individual governments having implemented strong economic stimulus measures. However, because of sluggish personal consumption, the appreciation of the yen, and reduction of consumer incentives by governments there is still some uncertainty in the outlook of the both the Japanese and the world economy.
In these circumstances, the electronic component market in this Second Quarter was better than expected. This was due in part to a recovering demand for digital service items, such as Smartphones and LED televisions in China and other Asian countries. This was also due to activation of capital expenditure for semiconductors, and the expansion of the environment-related market, including domestic hybrid cars and LED lighting devices.
Because of these factors, Maruwa's turnover for the Second Quarter was 9,576 million yen, an increase of 44.9% from the same period last year. Similarly, our operating profit was 1,475 million yen, compared to a 199 million yen at same period last year. This improvement has been due to increased demand and to cost reduction. Net income was 913 million yen.
2. Operating Results by Business Division
The Ceramic Components Division
There is strong demand from China for ceramic substrates, EMC components and thin film circuit substrates, and from Asia for digital consumer products. There is also a large demand for hybrid cars, which use ceramic substrate for power modules.
The Second Quarter sales total for the Ceramic Components Division was 9,081 million yen. This is a 47.8% increase from the same period last year, a sign of upward momentum. The operating profit increased 260.0% to 1,808 million yen. This exceeded expectations, and was due to improved productivity, cost reduction measures and to the contribution of new product offerings with high added value.
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 total sales for the Lighting Equipment Division for this second quarter were 495 million yen, with an operating loss of 39 million yen.
Operating results by business segment
|
| JPY million | ||
2nd Quarter | 2nd Quarter | |||
1 April - 30 Sept. | 1 April - 30 Sept. | |||
2009 | 2010 | |||
Ceramic Components: |
|
|
|
|
Net sales | 6,144 | 9,082 | ||
Operating income |
| 502 |
| 1,808 |
Lighting Equipment: | ||||
Net sales | 463 | 495 | ||
Operating income |
| (53) |
| (39) |
Total: | ||||
Net sales | 6,607 | 9,577 | ||
Operating income |
| 449 |
| 1,769 |
|
|
|
| |
Elimination: | ||||
Net sales |
| -- |
| -- |
Operating income |
| (250) |
| (293) |
Consolidated: | ||||
Net sales |
| 6,607 |
| 9,577 |
Operating income |
| 199 |
| 1,476 |
Quarterly sales results of Ceramic Components segment by product division
3. Financial Condition
Total assets as of the end of this Second Quarter were 30,938 million yen, up 0.8％ from the end of the previous quarter due to a 421 million yen increase in trade notes and accounts receivable.
Total liabilities decreased 5.8% to 3,889 million yen from the end of previous quarter and this was due to a decrease in trade notes and accounts payable.
Total net assets increased 1.8% to 27,049 million yen due to an increase in retained earnings.
As a result, equity ratio was 87.4%.
Cash and cash equivalents at the end of this Second Quarter were 8,712 million yen.
Cash provided by operating activities were 614 million yen. This is a 733 million yen decrease from the same period last year. The main factor in the cash decrease is due to an increase in trade receivables.
Net cash used in investing activities was 533 million yen due in particular to payments for purchase of property. There was a 127 million yen decrease from the same period last year.
Net cash used in financing activities was 143 million yen. This was a million yen increase from the same period last year.
Consolidated Balance Sheet
| JPY million | |
2nd Quarter | (Reference) | |
As of 30 Sep. | As of 31st March | |
2010 | 2010 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 9,239 | 9,305 |
Trade notes and accounts receivable | 5,735 | 5,314 |
Inventories: | 3,097 | 2728 |
Deferred tax assets | 263 | 294 |
Other current assets | 171 | 114 |
Allowance for doubtful accounts | (11) | (12) |
Total current assets | 18,494 | 17,743 |
Property, plant & equipment: | ||
Land | 3,154 | 3,161 |
Buildings & structures | 3,809 | 3,941 |
Machinery & equipment | 3,321 | 3,488 |
Other | 333 | 280 |
Construction in progress | 186 | 314 |
Total property, plant & equipment | 10,803 | 11,184 |
Less, accumulated depreciation | ||
Net property, plant & equipment | 10,803 | 11,184 |
Investment & other assets: | ||
Total investments & other assets | 1,641 | 1,762 |
Total assets | 30,938 | 30,689 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 1,291 | 1,727 |
Current portion of long-term debt | 5 | 5 |
Accrued income taxes | 407 | 265 |
Accrued bonus | 307 | 313 |
Accrued bonus to directors | 5 | 11 |
Notes payable for property acquisitions | 444 | 352 |
Other | 892 | 918 |
Total current liabilities | 3,351 | 3,591 |
Long-term liabilities: | ||
Long-term debt | 118 | 120 |
Deferred tax liabilities | 161 | 158 |
Other | 259 | 259 |
Total long-term liabilities | 538 | 537 |
Total liabilities | 3,889 | 4,128 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 6,710 | 6,710 |
Capital surplus | 9,747 | 9,747 |
Retained earnings | 12,814 | 12,051 |
Treasury stock, at cost | (679) | (689) |
Total shareholders' equity | 28,592 | 27,819 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | (54) | (128) |
Foreign currency translation adjustments | (1,508) | (1,140) |
Total valuation and translation adjustments | (1,562) | (1,268) |
A subscription warrant and Minority stockholders share | 19 | 10 |
Total shareholders' equity | 19 | 10 |
Total net assets | 27,049 | 26,561 |
Total liabilities and net assets | 30,938 | 30,689 |
Consolidated Statement of Income
| JPY million | |
2nd Quarter | 2nd Quarter | |
1 April - 30 Sep. | 1 April - 30 Sep. | |
2009 | 2010 | |
Net sales | 6,607 | 9,576 |
Cost of sales | 4,950 | 6,281 |
Gross profit | 1,657 | 3,295 |
Selling, general & administrative | 1,458 | 1,820 |
expenses | ||
Operating income | 199 | 1,475 |
Other income (expenses): | ||
Interest & dividend income | 33 | 26 |
Interest expenses | (1) | (1) |
Rent income | 58 | 56 |
Rent expenses on real estates for investments | (34) | (27) |
Securities operation profit | 1 | - |
Foreign exchange gain (loss), net | 1 | (41) |
Amortization of negative goodwill | 29 | - |
Gain on sales of property, plant and equipment | 3 | 0 |
Loss on disposal or sales of property, plant and equipment | (21) | (13) |
Loss on valuation of inventories securities | - | (150) |
Investment securities clearance profit and loss | 14 | 0 |
Other, net | 13 | 28 |
Other income (expenses), net | 96 | (122) |
Income before income taxes | 295 | 1,353 |
Income taxes: | ||
Current | 69 | 393 |
Deferred | (64) | 47 |
Total income taxes | 5 | 440 |
Net income | 290 | 913 |
Consolidated Statement of Cash Flows
JPY million |
| |
For year ended | For year ended | |
30th Sep. | 30th Sep. | |
2009 | 2010 | |
Cash flows from operating activities: | ||
Income before income taxes | 295 | 1,353 |
Adjustments for: | ||
Depreciation | 792 | 750 |
Amortization of negative goodwill | (29) | - |
Decrease in allowance for doubtful accounts | (6) | (9) |
Gain (Loss)on Valuation investment ｓecurities | (16) | 150 |
Gain on disposal or sales of property, plant & equipment | 17 | 13 |
Interest & dividend income | (33) | (26) |
Foreign exchange (gain) loss | 11 | 8 |
Decrease (increase) in trade notes & accounts receivable | 370 | (492) |
Increase in inventories | 451 | (416) |
Decrease in trade notes & accounts payable | (557) | (404) |
Other | 43 | (58) |
Sub-total | 1338 | 869 |
Interest & dividend income received | 36 | 27 |
Interest expenses paid | (1) | (1) |
Income taxes paid | (26) | (281) |
Net cash provided by operating activities | 1347 | 614 |
Cash flows from investment activities: | ||
Payments into time deposits | (53) | (131) |
Payments for purchase of property, plant & equipment | (830) | (438) |
Proceeds from sales of property, plant & equipment | 81 | 12 |
Payments for purchase of investment securities | (165) | (134) |
Proceeds from sales of investment securities | 311 | 155 |
Payments for purchase of intangible assets | (16) | (7) |
Other | 12 | 10 |
Net cash used in investing activities | (660) | (533) |
Cash flows from financing activities: | ||
Payments of long-term debt | -2 | -2 |
Proceeds from clearance of treasury stock | 10 | 9 |
Cash dividends paid | -150 | -150 |
Net cash used in financing activities | (142) | (143) |
Effect of exchange rate changes on cash & cash equivalents | -38 | -90 |
Net increase (decrease) in cash & cash equivalents | 507 | (152) |
Cash and cash equivalents at beginning of year | 7062 | 8864 |
Increase in cash and cash equivalents | ||
from newly consolidated subsidiary | - | - |
Cash and cash equivalents at end of year | 7,569 | 8,712 |