Last checked at 31 Oct 2011 09:15
31 October 2011 | |||||
MARUWA CO., LTD. | |||||
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN | |||||
Consolidated financial results for the second quarter of Fiscal 2012 | |||||
MARUWA CO., LTD. today announced its consolidated financial results for the second quarter of Fiscal 2012 as follows; | |||||
I. Summary of Consolidated Financial Results | |||||
(1) Summary of consolidated operating results | |||||
| JPY million |
| |||
2nd Quarter | 2nd Quarter | Change % | |||
As of 30 Sep. | As of 30 Sep. | ||||
2010 | 2011 |
| |||
Net sales | 9,576 | 10,976 | 14.6% | ||
Operating income | 1,475 | 1,802 | 22.2% | ||
Income before income taxes | 1,353 | 1,852 | 36.9% | ||
Net income | 913 | 1,263 | 38.3% | ||
Net income per share: |
| JPY |
| ||
Basic | 84.98 | 114.81 | 35.1% | ||
Diluted | - | 114.64 | -- | ||
(2) Summary of consolidated financial condition | |||||
|
|
| |||
As of 31 March | As of 30 Sep. | Change % | |||
2011 | 2011 |
| |||
Total assets | 33,649 | 38,991 | 15.9% | ||
Total net assets | 28,106 | 32,915 | 17.1% | ||
Equity ratio | 83.4% | 84.3% | 0.9% | ||
JPY | |||||
Total net assets per share | 2,611.82 | 2,672.96 | 2.3% | ||
II. Dividends | |||||
| JPY per share | ||||
Fiscal 2011 | Fiscal 2012 | ||||
| (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. | |||||
II. Outlook for the fiscal 2012 | |||||
The forecast figures for business results announced in 27 April 2011 were changed with current trend. | |||||
\* 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 second quarter, the world economy tended in general toward recovery due to ongoing strong market expansion in emerging countries, including China. But on the other hand, there were rapid progress of strong yen due to credit impairment such as the concern of US economic slowdown, downgrade of US government bonds, the reactivation of a concern about expanding debt problem in Euro zone nations triggered by Greece and slowdown economic growth at emerging countries, including China.
There were indications that the Japanese economy was 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.
However the future of economy is still unclear due to a severity of employment situation, decrease of export involved by strong yen or slowdown of economic growth in overseas mainly the Americas and Europe, sluggish personal consumption by the end of consumption incentive and overseas transfer of domestic company.
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, mainly 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 10,975 million yen. (This is up 14.6% compared to same period 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 1,802 million yen. (This is up 22.1% compared to same period last year) Net income was 1,263 million yen. (This is up 38.3% compared to same period last year)
2.Operating Results by Business Division
The Ceramic Components Division
The second quarter turnover was 10,294 million yen. This is a 13.3% 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 2,147 million yen. This is up 18.8% compared to same period 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 second quarter was 682 million yen. This is a 33 million yen increase over the same period last year. Operating loss was 7 million yen.
Review of Operations | ||||
Review of operating results by segment | ||||
|
| JPY million | ||
2nd Quarter | 2nd Quarter | |||
As of 30 Sep. | As of 30 Sep. | |||
2010 | 2011 | |||
Ceramic Components: |
|
|
|
|
Net sales | 9,082 | 10,294 | ||
Operating income |
| 1,808 |
| 2,148 |
Lighting Equipment: | ||||
Net sales | 495 | 682 | ||
Operating income |
| (39) |
| (7) |
Total: | ||||
Net sales | 9,576 | 10,976 | ||
Operating income |
| 1,769 |
| 2,141 |
|
|
|
| |
Elimination: | ||||
Net sales |
| -- |
| -- |
Operating income |
| (293) |
| (339) |
Consolidated: | ||||
Net sales |
| 9,576 |
| 10,976 |
Operating income |
| 1,476 |
| 1,802 |
3. Financial Condition
Total assets as of the end of this second quarter were 39,053 million yen. This is a 16％ up compared to the end of last fiscal year . This is due to flotation to beef up equipments.
Total liabilities were 6,094 million yen. This is up to 9.9% compared to the previous year-end. Total net assets were 32,960million yen. This is up to 17.3% 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 84.3%.
Consolidated Balance Sheet
| JPY million | |
2nd Quarter | (Reference) | |
As of 30 Sep. | As of 31 March | |
2011 | 2011 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 11,955 | 8,923 |
Trade notes and accounts receivable | 6,669 | 6,540 |
Inventories: | 4,562 | 3,671 |
Deferred tax assets | 221 | 221 |
Other current assets | 541 | 311 |
Allowance for doubtful accounts | (13) | (12) |
Total current assets | 23,935 | 19,654 |
Property, plant & equipment: | ||
Land | 3,975 | 3,155 |
Buildings & structures | 4,000 | 3,782 |
Machinery & equipment | 3,652 | 3,494 |
Other | 460 | 384 |
Construction in progress | 1,419 | 1,525 |
Total property, plant & equipment | 13,506 | 12,340 |
Intangible Assets | 200 | 221 |
Net property, plant & equipment | 13,706 | 12,561 |
Investment & other assets: | ||
Total investments & other assets | 1,350 | 1,434 |
Total assets | 38,991 | 33,649 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 2,034 | 2,105 |
Current portion of long-term debt | 5 | 5 |
Accrued income taxes | 587 | 598 |
Accrued bonus | 365 | 345 |
Accrued bonus to directors | 5 | 22 |
Notes payable for property acquisitions | 1,306 | 669 |
Other | 1,234 | 1,229 |
Total current liabilities | 5,536 | 4,973 |
Long-term liabilities: | ||
Long-term debt | 115 | 116 |
Deferred tax liabilities | 181 | 201 |
Other | 244 | 253 |
Total long-term liabilities | 540 | 570 |
Total liabilities | 6,076 | 5,543 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 8,647 | 6,710 |
Capital surplus | 11,901 | 9,747 |
Retained earnings | 14,853 | 13,750 |
Treasury stock, at cost | (152) | (679) |
Total shareholders' equity | 35,249 | 29,528 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | (86) | (50) |
Foreign currency translation adjustments | (2,286) | (1,401) |
Total valuation and translation adjustments | (2,372) | (1,451) |
A subscription warrant and Minority stockholders share | 38 | 29 |
Total shareholders' equity | 38 | 29 |
Total net assets | 32,915 | 28,106 |
Total liabilities and net assets | 38,991 | 33,649 |
Consolidated Statement of Income
| JPY million | |
2nd Quarter | 2nd Quarter | |
1 April - 30 Sep. | 1 April - 30 Sep. | |
2010 | 2011 | |
Net sales | 9,576 | 10,976 |
Cost of sales | 6,281 | 7,304 |
Gross profit | 3,295 | 3,672 |
Selling, general & administrative | 1,820 | 1,870 |
expenses | ||
Operating income | 1,475 | 1,802 |
Other income (expenses): | ||
Interest & dividend income | 26 | 13 |
Interest expenses | (1) | (1) |
Rent income | 56 | 54 |
Rent expenses on real estates for investments | (27) | (26) |
Foreign exchange gain (loss), net | (41) | 56 |
Stock issuance cost | - | (24) |
Gain on sales of property, plant and equipment | 0 | 10 |
Loss on disposal or sales of property, plant and equipment | (13) | (45) |
Loss on valuation of inventories securities | (150) | (4) |
Other, net | 28 | 17 |
Other income (expenses), net | (122) | 50 |
Income before income taxes | 1,353 | 1,852 |
Income taxes: | ||
Current | 393 | 581 |
Deferred | 47 | 8 |
Total income taxes | 440 | 589 |
Net income | 913 | 1,263 |
Consolidated Statement of Cash Flows | ||
JPY million |
| |
For year ended | For year ended | |
30th Sep. | 30th Sep. | |
2010 | 2011 | |
Cash flows from operating activities: | ||
Income before income taxes | 1,353 | 1,852 |
Depreciation | 750 | 843 |
Decrease in allowance for doubtful accounts | (9) | (4) |
Gain (Loss)on Valuation investment ｓecurities | 150 | 6 |
Gain on disposal or sales of property, plant & equipment | 13 | 35 |
Interest & dividend income | (26) | (13) |
Foreign exchange (gain) loss | 8 | 6 |
Decrease (increase) in trade notes & accounts receivable | (492) | (343) |
Increase in inventories | (416) | (1060) |
Decrease in trade notes & accounts payable | (404) | (10) |
Other | (58) | (116) |
Sub-total | 869 | 1196 |
Interest & dividend income received | 27 | 15 |
Interest expenses paid | (1) | (1) |
Income taxes paid | (281) | (587) |
Net cash provided by operating activities | 614 | 623 |
Cash flows from investment activities: | ||
Payments into time deposits | (131) | (95) |
Payments for purchase of property, plant & equipment | (438) | (1872) |
Proceeds from sales of property, plant & equipment | 12 | 67 |
Payments for purchase of investment securities | (134) | (112) |
Proceeds from sales of investment securities | 155 | 109 |
Payments for purchase of intangible assets | (7) | (8) |
Other | 10 | 38 |
Net cash used in investing activities | (533) | (1873) |
Cash flows from financing activities: | ||
Increase in short-term loans payable | - | 0 |
Proceeds from long-term loans payable | - | 1 |
Payments of long-term debt | (2) | (2) |
Proceeds from clearance of treasury stock | 9 | 745 |
Proceeds from issuance of common stock | - | 3850 |
Purchase of treasury stock | - | (1) |
Cash dividends paid | (150) | (161) |
Net cash used in financing activities | (143) | 4,432 |
Effect of exchange rate changes on cash & cash equivalents | -90 | -171 |
Net increase (decrease) in cash & cash equivalents | (152) | 3,011 |
Cash and cash equivalents at beginning of year | 8864 | 8380 |
Increase in cash and cash equivalents | ||
from newly consolidated subsidiary | - | - |
Cash and cash equivalents at end of year | 8,712 | 11,391 |