27th Jan 2011 11:22
27-Jan-11 | |||||
MARUWA CO., LTD. | |||||
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN | |||||
Consolidated financial results for the third quarter of Fiscal 2011 | |||||
MARUWA CO., LTD. today announced its consolidated financial results for the third quarter of Fiscal 2011 as follows; | |||||
I. Summary of Consolidated Financial Results | |||||
(1) Summary of consolidated operating results | |||||
| JPY million | ||||
3rd Quarter | 3rd Quarter | ||||
1 April - 31 Dec. | 1 April - 31 Dec. | ||||
2009 | 2010 | ||||
Net sales | 10,560 | 14,470 | |||
Operating income | 643 | 2,231 | |||
Income before income taxes | 745 | 2,167 | |||
Net income | 619 | 1,409 | |||
Net income per share: |
| JPY | |||
Basic | 57.69 | 131.08 | |||
Diluted | - | -- | |||
(2) Summary of consolidated financial condition | |||||
| JPY million | ||||
As of 31 March | As of 31 Dec. | ||||
2010 | 2010 | ||||
Total assets | 30,689 | 31,623 | |||
Total net assets | 26,560 | 27,230 | |||
Equity ratio | 86.5% | 86.0% | |||
JPY | |||||
Total net assets per share | 2,470.94 | 2,530.80 | |||
II. Dividends | |||||
| JPY per share | ||||
Fiscal 2010 | Fiscal 2011 | ||||
| (forecast) | ||||
Interim | 14 | 15 | |||
Year-end | 14 | 15 | |||
Annual | 28 | 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 2011 | |||||
The forecast figures for business results and dividends announced in 28 October 2010 are not changed. | |||||
\* 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 Third Quarter, though newly financial crisis of euro zone nation triggered credit impairment, world economy recovered more than originally expected. 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.
Though demand recovered strongly in emerging country, there is growing risk for future and remained some uncertainty in the outlook of Japanese economy due to sluggish personal consumption, and decline in auto sales due to reduction of consumer incentives by governments
In these circumstances, the electronic component market in this Third Quarter persisted strongly. This was due in part to a recovering demand for digital service items, such as handheld terminal, Smartphones and 3D TV in China and other Asian countries. This was also due to activation of capital expenditure for semiconductors influenced recovering demand of semiconductor.
Because of these factors, Maruwa's turnover for the Third Quarter was 14,470 million yen, an increase of 37.0% from the same period last year. Similarly, our operating profit was 2,231 million yen, an increase of 247.2% from the same period last year. This improvement has been due to sales increase and to cost reduction. Net income was 1,409 million yen, and increase of 127.7% from the same period last year.
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 Third Quarter sales total for the Ceramic Components Division was 13,605 million yen. This is a 40.7% increase from the same period last year, a sign of upward momentum. The operating profit increased 155.0% to 2,694 million yen. This exceeded prior period level, 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 Third Quarter were 865 million yen, with an operating loss of 32 million yen.
Quarterly sales results of Ceramic Components segment by product division
Review of Operations | ||||
Review of operating results by segment | ||||
|
| JPY million | ||
3rd Quarter | 3rd Quarter | |||
1 Apr. - 31 Dec. | 1 Apr. - 31 Dec. | |||
2009 | 2010 | |||
Ceramic Components: |
|
|
|
|
Net sales | 9,673 | 13,605 | ||
Operating income |
| 1,057 |
| 2,694 |
Lighting Equipment: | ||||
Net sales | 887 | 865 | ||
Operating income |
| (33) |
| (32) |
Total: | ||||
Net sales | 10,560 | 14,470 | ||
Operating income |
| 1,024 |
| 2,662 |
|
|
|
| |
Elimination: | ||||
Net sales |
| -- |
| -- |
Operating income |
| (381) |
| (430) |
Consolidated: | ||||
Net sales |
| 10,560 |
| 14,470 |
Operating income |
| 643 |
| 2,232 |
3. Financial Condition
Total assets as of the end of this Third Quarter were 31,623 million yen, up 3.0％ from the end of the previous quarter due to a 874 million yen increase in trade notes and accounts receivable.
Total liabilities increased 6.4% to 4,393 million yen from the end of previous quarter and this was due to a increase in trade notes and accounts payable.
Total net assets increased 2.5% to 27,230 million yen due to an increase in retained earnings.
As a result, equity ratio was 86.0%.
Cash and cash equivalents at the end of this Third Quarter were 8,971 million yen.
Cash provided by operating activities were 1,394 million yen. This is a 506 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 848 million yen due in particular to payments for purchase of property. There was a 31 million yen increase from the same period last year.
Net cash used in financing activities was 306 million yen. This was 63 million yen increase from the same period last year.
The forecast figures for business results announced in 28 October 2010 were not changed with current trend.
Consolidated Balance Sheet
| JPY million | |
3rd Quarter | (Reference) | |
As of 31 Dec. | As of 31 March | |
2010 | 2010 | |
ASSETS | ||
Current assets: | ||
Cash & deposits | 9,383 | 9,305 |
Trade notes and accounts receivable | 6,187 | 5,314 |
Inventories: | - | 2728 |
Merchandise and finished goods | 960 | - |
Work-in-process | 886 | - |
Raw materials | 1,478 | - |
Deferred tax assets | 134 | 294 |
Other current assets | 213 | 114 |
Allowance for doubtful accounts | (12) | (12) |
Total current assets | 19,229 | 17,743 |
Property, plant & equipment: | ||
Land | 3,148 | 3,161 |
Buildings & structures | 7,824 | 3,941 |
Machinery & equipment | 12,513 | 3,488 |
Other | 2,959 | 280 |
Construction in progress | 209 | 314 |
Total property, plant & equipment | 26,653 | 11,184 |
Less, accumulated depreciation | (15,909) | - |
Net property, plant & equipment | 10,744 | 11,184 |
Investment & other assets: | ||
Total investments & other assets | 1,650 | 1,762 |
Total assets | 31,623 | 30,689 |
LIABILITIES | ||
Current liabilities: | ||
Trade notes & accounts payable | 1,577 | 1,727 |
Current portion of long-term debt | 5 | 5 |
Accrued income taxes | 380 | 265 |
Accrued bonus | 156 | 313 |
Accrued bonus to directors | 3 | 11 |
Notes payable for property acquisitions | 430 | 352 |
Other | 1,262 | 918 |
Total current liabilities | 3,813 | 3,591 |
Long-term liabilities: | ||
Long-term debt | 117 | 120 |
Deferred tax liabilities | 209 | 158 |
Other | 254 | 259 |
Total long-term liabilities | 580 | 537 |
Total liabilities | 4,393 | 4,128 |
NET ASSETS | ||
Shareholders' equity: | ||
Common stock | 6,710 | 6,710 |
Capital surplus | 9,747 | 9,747 |
Retained earnings | 13,147 | 12,051 |
Treasury stock, at cost | (679) | (689) |
Total shareholders' equity | 28,925 | 27,819 |
Valuation and translation adjustments: | ||
Net unrealized gains(losses)on available-for-sale securities | (35) | (128) |
Foreign currency translation adjustments | (1,684) | (1,140) |
Total valuation and translation adjustments | (1,719) | (1,268) |
A subscription warrant and Minority stockholders share | 24 | 10 |
Total shareholders' equity | 24 | 10 |
Total net assets | 27,230 | 26,561 |
Total liabilities and net assets | 31,623 | 30,689 |
Consolidated Statements of Income | ||
| JPY million | |
3rd Quarter | 3rd Quarter | |
1 April - 31 Dec. | 1 April - 31 Dec. | |
2009 | 2010 | |
Net sales | 10,560 | 14,470 |
Cost of sales | 7,660 | 9,501 |
Gross profit | 2,900 | 4,969 |
Selling, general & administrative | 2,257 | 2,738 |
expenses | ||
Operating income | 643 | 2,231 |
Other income (expenses): | ||
Interest & dividend income | 45 | 38 |
Interest expenses | (2) | (1) |
Rent income | 86 | 83 |
Rent expenses on real estates for investments | (48) | (43) |
Securities operation profit | 1 | - |
Foreign exchange gain (loss), net | (19) | (26) |
Amortization of negative goodwill | 43 | - |
Gain on sales of property, plant and equipment | 3 | 4 |
Loss on valuation of inventories securities | - | (150) |
Loss on disposal or sales of property, plant and equipment | (46) | (21) |
Investment securities clearance profit and loss | 23 | 0 |
Extra retirement benefits | (16) | - |
Other, net | 32 | 52 |
Other income (expenses), net | 102 | (64) |
Income before income taxes | 745 | 2,167 |
Income taxes: | ||
Current | 171 | 529 |
Deferred | (45) | 229 |
Total income taxes | 126 | 758 |
Net income | 619 | 1,409 |
Consolidated Statement of Cash Flows | ||
| JPY million | |
3rd Quarter | 3rd Quarter | |
1 April - 31 Dec. | 1 April - 31 Dec. | |
2009 | 2010 | |
Cash flows from operating activities: | ||
Income before income taxes | 745 | 2,167 |
Adjustments for: | ||
Depreciation | 1211 | 1151 |
Amortization of negative goodwill | (43) | - |
Decrease in allowance for doubtful accounts | (6) | (10) |
Gain (Loss)on Valuation investment ｓecurities | (24) | 149 |
Gain on disposal or sales of property, plant & equipment | 43 | 17 |
Interest & dividend income | (44) | (38) |
Foreign exchange (gain) loss | 6 | 10 |
Decrease (increase) in trade notes & accounts receivable | (347) | (984) |
Increase in inventories | 355 | (674) |
Decrease in trade notes & accounts payable | (116) | (107) |
Other | 138 | 129 |
Sub-total | 1918 | 1810 |
Interest & dividend income received | 48 | 39 |
Interest expenses paid | (2) | (1) |
Income taxes paid | (64) | (454) |
Net cash provided by operating activities | 1900 | 1394 |
Cash flows from investment activities: | ||
Payments into time deposits | (55) | (135) |
Proceeds from withdrawal of time deposits | 128 | |
Payments for purchase of property, plant & equipment | (995) | (892) |
Proceeds from sales of property, plant & equipment | 81 | 22 |
Payments for purchase of investment securities | (226) | (153) |
Proceeds from sales of investment securities | 380 | 174 |
Payments for purchase of intangible assets | (20) | (7) |
Other | 17 | 15 |
Net cash used in investing activities | (818) | (848) |
Cash flows from financing activities: | ||
Payments of long-term debt | (4) | (4) |
Proceeds from clearance of treasury stock | 45 | 9 |
Cash dividends paid | (283) | (311) |
Net cash used in financing activities | (242) | (306) |
Effect of exchange rate changes on cash & cash equivalents | (3) | (133) |
Net increase (decrease) in cash & cash equivalents | 837 | 107 |
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 | 7899 | 8971 |
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Maruwa