MAKITA CORPORATION | ||||
(Registrant) | ||||
By: | /s/ Masahiko Goto | |||
Masahiko Goto | ||||
President and Representative Director | ||||
(1) | Adoption of simplified accounting methods: None. | |
(2) | Accounting policy changes since the year ended March 31, 2006: None. | |
(3) | Change in scope of consolidation and equity method: Consolidation (Excluded) 1: Makita Fastenings Corporation |
(1) CONSOLIDATED FINANCIAL RESULTS | |||||||||||||||||||||||||
Yen (million) | |||||||||||||||||||||||||
For the nine months | For the nine months | For the year ended | |||||||||||||||||||||||
ended December 31, 2005 | ended December 31, 2006 | March 31, 2006 | |||||||||||||||||||||||
% | % | % | |||||||||||||||||||||||
Net sales |
165,773 | 15.3 | 202,689 | 22.3 | 229,075 | 17.6 | |||||||||||||||||||
Operating income |
35,552 | 39.2 | 35,464 | (0.2 | ) | 45,778 | 45.8 | ||||||||||||||||||
Income before income taxes |
38,738 | 43.0 | 36,489 | (5.8 | ) | 49,143 | 50.7 | ||||||||||||||||||
Net income |
34,440 | 82.9 | 25,435 | (26.1 | ) | 40,411 | 82.6 | ||||||||||||||||||
Yen | |||||||||||||||||||||||||
Net income per share: |
|||||||||||||||||||||||||
Basic |
239.59 | 176.99 | 281.15 | ||||||||||||||||||||||
Diluted |
239.59 | 176.99 | 281.15 | ||||||||||||||||||||||
Notes: | 1. | Amounts of less than one million yen have been rounded. | |
2. | The table above shows the change in the percentage ratio of net sales, operating income, income before income taxes, and net income against the corresponding period of the previous year. |
1 |
(2) CONSOLIDATED FINANCIAL POSITION | ||||||||||||
Yen (million) | ||||||||||||
As of | As of | As of | ||||||||||
December 31, 2005 | December 31, 2006 | March 31, 2006 | ||||||||||
Total assets |
312,690 | 355,553 | 326,038 | |||||||||
Shareholders equity |
256,442 | 291,059 | 266,584 | |||||||||
Shareholders
equity ratio to total assets (%) |
82.0 | % | 81.9 | % | 81.8 | % | ||||||
Yen | ||||||||||||
Shareholders equity per share |
1,784.38 | 2,025.40 | 1,854.99 | |||||||||
Yen (million) | ||||||||||||
For the nine months | For the nine months | For the year ended | ||||||||||
ended December 31, 2005 | ended December 31, 2006 | March 31, 2006 | ||||||||||
Net cash provided by operating activities |
16,770 | 22,807 | 25,067 | |||||||||
Net cash provided by (used in)
investing activities |
6,320 | (20,805 | ) | 7,655 | ||||||||
Net cash used in financing activities |
(17,957 | ) | (6,301 | ) | (19,548 | ) | ||||||
Cash and cash equivalents, end of period |
30,863 | 36,289 | 39,054 | |||||||||
2 |
Yen (million) | ||||||||
For the year ending | ||||||||
March 31, 2007 | ||||||||
Consolidated Basis: |
||||||||
Net sales |
273,000 | |||||||
Operating income |
44,500 | |||||||
Income before income taxes |
46,000 | |||||||
Net income |
31,700 | |||||||
Net income per share (Yen) |
220.59 | |||||||
Non-consolidated Basis: |
||||||||
Net sales |
124,000 | |||||||
Operating income |
20,000 | |||||||
Ordinary profit |
32,500 | |||||||
Net income |
22,200 | |||||||
Net income per share (Yen) |
154.48 | |||||||
Assumption: |
||||||||
The above outlook is based on the assumption of exchange rates of 117 yen to US$1 and 150 yen to 1 Euro. |
3 |
For the year ended | For the year ending | |||||||
March 31, 2006 | March 31, 2007 | |||||||
(Results) | (Outlook) | |||||||
Cash dividend per share for the interim period |
19 yen | 19 yen | ||||||
(With a special dividend | (With a special dividend | |||||||
of 10 yen) | of 10 yen) | |||||||
Cash dividend per share for the second half |
38 yen | |||||||
(With a special dividend | (Note) | |||||||
of 29 yen) | ||||||||
Total cash dividend per share for the year |
57 yen | |||||||
(With a special dividend | (Note) | |||||||
of 39 yen) | ||||||||
Note: | The annual dividend will be set according to the Companys policy for distribution of earnings, which is to maintain a consolidated dividend payout ratio* of 30% or more. | |
In addition, the dividend for the second half of the fiscal year will be calculated by deducting the interim dividend from the annual dividend, and the final decision for the dividend will be made at the General Meeting of Shareholders to be held in June 2007. | ||
* | The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated net income per share (after adjustments for special factors) and 100 is multiplied. |
4 |
Yen (millions) | ||||||||||||
As of | As of | Increase | ||||||||||
March 31, 2006 | December 31, 2006 | (Decrease) | ||||||||||
ASSETS |
||||||||||||
CURRENT ASSETS: |
||||||||||||
Cash and cash equivalents |
39,054 | 36,289 | (2,765 | ) | ||||||||
Time deposits |
1,845 | 6,829 | 4,984 | |||||||||
Marketable securities |
47,773 | 55,977 | 8,204 | |||||||||
Trade receivables |
||||||||||||
Notes |
1,936 | 3,174 | 1,238 | |||||||||
Accounts |
46,074 | 48,239 | 2,165 | |||||||||
Less Allowance for doubtful receivables |
(1,016 | ) | (959 | ) | 57 | |||||||
Inventories |
79,821 | 91,938 | 12,117 | |||||||||
Deferred income taxes |
3,661 | 3,811 | 150 | |||||||||
Prepaid expenses and other current assets |
8,621 | 9,014 | 393 | |||||||||
Total current assets |
227,769 | 254,312 | 26,543 | |||||||||
PROPERTY, PLANT AND EQUIPMENT, at cost: |
||||||||||||
Land |
17,737 | 16,708 | (1,029 | ) | ||||||||
Buildings and improvements |
55,470 | 55,265 | (205 | ) | ||||||||
Machinery and equipment |
74,501 | 75,222 | 721 | |||||||||
Construction in progress |
2,340 | 5,606 | 3,266 | |||||||||
150,048 | 152,801 | 2,753 | ||||||||||
Less Accumulated depreciation |
(90,845 | ) | (90,301 | ) | 544 | |||||||
59,203 | 62,500 | 3,297 | ||||||||||
INVESTMENTS AND OTHER ASSETS: |
||||||||||||
Investment securities |
30,439 | 27,684 | (2,755 | ) | ||||||||
Deferred income taxes |
698 | 1,357 | 659 | |||||||||
Other assets |
7,929 | 9,700 | 1,771 | |||||||||
39,066 | 38,741 | (325 | ) | |||||||||
326,038 | 355,553 | 29,515 | ||||||||||
5 |
Yen (millions) | ||||||||||||
As of | As of | Increase | ||||||||||
March 31, 2006 | December 31, 2006 | (Decrease) | ||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
CURRENT LIABILITIES: |
||||||||||||
Short-term borrowings |
1,728 | 3,914 | 2,186 | |||||||||
Trade notes and accounts payable |
13,908 | 14,146 | 238 | |||||||||
Accrued payroll |
8,224 | 6,940 | (1,284 | ) | ||||||||
Accrued expenses and other |
15,224 | 16,857 | 1,633 | |||||||||
Income taxes payable |
6,701 | 8,134 | 1,433 | |||||||||
Deferred income taxes |
176 | 68 | (108 | ) | ||||||||
Total current liabilities |
45,961 | 50,059 | 4,098 | |||||||||
LONG-TERM LIABILITIES: |
||||||||||||
Long-term indebtedness |
104 | 108 | 4 | |||||||||
Accrued retirement and termination benefits |
2,901 | 3,397 | 496 | |||||||||
Deferred income taxes |
7,923 | 7,907 | (16 | ) | ||||||||
Other liabilities |
930 | 1,053 | 123 | |||||||||
11,858 | 12,465 | 607 | ||||||||||
MINORITY INTERESTS |
1,635 | 1,970 | 335 | |||||||||
SHAREHOLDERS EQUITY: |
||||||||||||
Common stock |
23,805 | 23,805 | | |||||||||
Additional paid-in capital |
45,437 | 45,437 | | |||||||||
Legal reserve and retained earnings |
192,255 | 209,498 | 17,243 | |||||||||
Accumulated other comprehensive income |
5,345 | 12,605 | 7,260 | |||||||||
Treasury stock, at cost |
(258 | ) | (286 | ) | (28 | ) | ||||||
266,584 | 291,059 | 24,475 | ||||||||||
326,038 | 355,553 | 29,515 | ||||||||||
6 |
Yen (millions) | ||||||||||||||||||||||||||||||||
For the nine | For the nine | For the year | ||||||||||||||||||||||||||||||
months ended | months ended | Increase | ended | |||||||||||||||||||||||||||||
December 31, 2005 | December 31, 2006 | (Decrease) | March 31, 2006 | |||||||||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||||||||
NET SALES |
165,773 | 100.0 | 202,689 | 100.0 | 36,916 | 22.3 | 229,075 | 100.0 | ||||||||||||||||||||||||
Cost of sales |
95,926 | 57.9 | 117,595 | 58.0 | 21,669 | 22.6 | 132,897 | 58.0 | ||||||||||||||||||||||||
GROSS PROFIT |
69,847 | 42.1 | 85,094 | 42.0 | 15,247 | 21.8 | 96,178 | 42.0 | ||||||||||||||||||||||||
Selling, general,
administrative and other
expenses |
34,295 | 20.7 | 49,630 | 24.5 | 15,335 | 44.7 | 50,400 | 22.0 | ||||||||||||||||||||||||
OPERATING INCOME |
35,552 | 21.4 | 35,464 | 17.5 | (88 | ) | (0.2 | ) | 45,778 | 20.0 | ||||||||||||||||||||||
OTHER INCOME
(EXPENSES): |
||||||||||||||||||||||||||||||||
Interest and dividend
income |
843 | 0.5 | 965 | 0.5 | 122 | 14.5 | 1,301 | 0.6 | ||||||||||||||||||||||||
Interest expense |
(313 | ) | (0.2 | ) | (240 | ) | (0.1 | ) | 73 | (23.3 | ) | (364 | ) | (0.2 | ) | |||||||||||||||||
Exchange losses
on foreign currency
transactions, net |
(106 | ) | (0.0 | ) | (401 | ) | (0.2 | ) | (295 | ) | 278.3 | (258 | ) | (0.1 | ) | |||||||||||||||||
Realized gains
on securities, net |
2,902 | 1.8 | 951 | 0.5 | (1,951 | ) | (67.2 | ) | 2,918 | 1.3 | ||||||||||||||||||||||
Other, net |
(140 | ) | (0.1 | ) | (250 | ) | (0.2 | ) | (110 | ) | 78.6 | (232 | ) | (0.1 | ) | |||||||||||||||||
Total |
3,186 | 2.0 | 1,025 | 0.5 | (2,161 | ) | (67.8 | ) | 3,365 | 1.5 | ||||||||||||||||||||||
INCOME BEFORE
INCOME TAXES |
38,738 | 23.4 | 36,489 | 18.0 | (2,249 | ) | (5.8 | ) | 49,143 | 21.5 | ||||||||||||||||||||||
PROVISION FOR
INCOME TAXES |
4,298 | 2.6 | 11,054 | 5.5 | 6,756 | 157.2 | 8,732 | 3.9 | ||||||||||||||||||||||||
NET INCOME |
34,440 | 20.8 | 25,435 | 12.5 | (9,005 | ) | (26.1 | ) | 40,411 | 17.6 | ||||||||||||||||||||||
7 |
Yen (millions) | ||||||||||||
For the nine | For the nine | For the year | ||||||||||
months ended | months ended | ended | ||||||||||
December 31, 2005 | December 31, 2006 | March 31, 2006 | ||||||||||
Net cash provided by
operating activities |
16,770 | 22,807 | 25,067 | |||||||||
Net cash provided by (used in) investing activities |
6,320 | (20,805 | ) | 7,655 | ||||||||
Net cash used in
financing activities |
(17,957 | ) | (6,301 | ) | (19,548 | ) | ||||||
Effect of exchange rate changes
on cash and cash equivalents |
346 | 1,534 | 496 | |||||||||
Net change in cash
and cash equivalents |
5,479 | (2,765 | ) | 13,670 | ||||||||
Cash and cash equivalents,
beginning of period |
25,384 | 39,054 | 25,384 | |||||||||
Cash and cash equivalents,
end of period |
30,863 | 36,289 | 39,054 | |||||||||
8 |
For the nine months ended December 31, 2005 | ||||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
and elimi- | Consoli- | |||||||||||||||||||||||||||||||
Japan | Europe | North America | Asia | Other | Total | nations | dated | |||||||||||||||||||||||||
Sales: |
||||||||||||||||||||||||||||||||
(1) External
customers |
38,624 | 65,664 | 34,814 | 6,399 | 20,272 | 165,773 | | 165,773 | ||||||||||||||||||||||||
(2) Intersegment |
41,393 | 5,102 | 2,516 | 30,561 | 138 | 79,710 | (79,710 | ) | | |||||||||||||||||||||||
Total |
80,017 | 70,766 | 37,330 | 36,960 | 20,410 | 245,483 | (79,710 | ) | 165,773 | |||||||||||||||||||||||
Operating expenses |
60,496 | 61,270 | 36,202 | 32,461 | 18,304 | 208,733 | (78,512 | ) | 130,221 | |||||||||||||||||||||||
Operating income |
19,521 | 9,496 | 1,128 | 4,499 | 2,106 | 36,750 | (1,198 | ) | 35,552 | |||||||||||||||||||||||
For the nine months ended December 31, 2006 | ||||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
and elimi- | Consoli- | |||||||||||||||||||||||||||||||
Japan | Europe | North America | Asia | Other | Total | nations | dated | |||||||||||||||||||||||||
Sales: |
||||||||||||||||||||||||||||||||
(1) External
customers |
45,369 | 89,244 | 37,089 | 7,310 | 23,677 | 202,689 | | 202,689 | ||||||||||||||||||||||||
(2) Intersegment |
48,273 | 4,259 | 4,035 | 49,260 | 136 | 105,963 | (105,963 | ) | | |||||||||||||||||||||||
Total |
93,642 | 93,503 | 41,124 | 56,570 | 23,813 | 308,652 | (105,963 | ) | 202,689 | |||||||||||||||||||||||
Operating expenses |
80,096 | 80,997 | 38,927 | 48,490 | 21,043 | 269,553 | (102,328 | ) | 167,225 | |||||||||||||||||||||||
Operating income |
13,546 | 12,506 | 2,197 | 8,080 | 2,770 | 39,099 | (3,635 | ) | 35,464 | |||||||||||||||||||||||
For the year ended March 31, 2006 | ||||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||
and elimi- | Consoli- | |||||||||||||||||||||||||||||||
Japan | Europe | North America | Asia | Other | Total | nations | dated | |||||||||||||||||||||||||
Sales: |
||||||||||||||||||||||||||||||||
(1) External
customers |
53,788 | 91,249 | 47,979 | 8,645 | 27,414 | 229,075 | | 229,075 | ||||||||||||||||||||||||
(2) Intersegment |
57,826 | 6,306 | 4,321 | 43,979 | 181 | 112,613 | (112,613 | ) | | |||||||||||||||||||||||
Total |
111,614 | 97,555 | 52,300 | 52,624 | 27,595 | 341,688 | (112,613 | ) | 229,075 | |||||||||||||||||||||||
Operating expenses |
87,468 | 85,505 | 50,437 | 46,162 | 25,048 | 294,620 | (111,323 | ) | 183,297 | |||||||||||||||||||||||
Operating income |
24,146 | 12,050 | 1,863 | 6,462 | 2,547 | 47,068 | (1,290 | ) | 45,778 | |||||||||||||||||||||||
9 |
1. Consolidated results and outlook | ||||||||||||||||
Yen (millions) | ||||||||||||||||
For the nine | For the nine | |||||||||||||||
months ended | months ended | |||||||||||||||
December 31, 2005 | December 31, 2006 | |||||||||||||||
(Results) | (Results) | |||||||||||||||
(Amount) | (%) | (Amount) | (%) | |||||||||||||
Net sales |
165,773 | 15.3 | 202,689 | 22.3 | ||||||||||||
Domestic |
29,827 | 4.2 | 34,508 | 15.7 | ||||||||||||
Overseas |
135,946 | 18.1 | 168,181 | 23.7 | ||||||||||||
Operating income |
35,552 | 39.2 | 35,464 | (0.2 | ) | |||||||||||
Income before income taxes |
38,738 | 43.0 | 36,489 | (5.8 | ) | |||||||||||
Net income |
34,440 | 82.9 | 25,435 | (26.1 | ) | |||||||||||
Net income per share (Yen) |
239.59 | 176.99 | ||||||||||||||
Employees |
8,550 | 9,008 | ||||||||||||||
Yen (millions) | ||||||||||||||||||||||||
For the year | For the six | For the year | ||||||||||||||||||||||
ended | months ending | ending | ||||||||||||||||||||||
March 31, 2006 | September 30, 2006 | March 31, 2007 | ||||||||||||||||||||||
(Results) | (Results) | (Outlook) | ||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||
Net sales |
229,075 | 17.6 | 131,891 | 23.7 | 273,000 | 19.2 | ||||||||||||||||||
Domestic |
41,600 | 5.6 | 22,927 | 14.5 | 46,500 | 11.8 | ||||||||||||||||||
Overseas |
187,475 | 20.7 | 108,964 | 25.8 | 226,500 | 20.8 | ||||||||||||||||||
Operating income |
45,778 | 45.8 | 21,387 | (17.4 | ) | 44,500 | (2.8 | ) | ||||||||||||||||
Income before income taxes |
49,143 | 50.7 | 21,796 | (17.8 | ) | 46,000 | (6.4 | ) | ||||||||||||||||
Net income |
40,411 | 82.6 | 15,390 | (40.4 | ) | 31,700 | (21.6 | ) | ||||||||||||||||
Net income per share (Yen) |
281.15 | 107.09 | 220.59 | |||||||||||||||||||||
Employees |
8,629 | 9,077 | | |||||||||||||||||||||
Note: | The table above shows the change in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year. |
10 |
2. Consolidated net sales by geographic area | ||||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
For the nine | For the nine | For the year | For the six | |||||||||||||||||||||||||||||
months ended | months ended | ended | months ended | |||||||||||||||||||||||||||||
December 31, 2005 | December 31, 2006 | March 31, 2006 | September 30, 2006 | |||||||||||||||||||||||||||||
(Results) | (Results) | (Results) | (Results) | |||||||||||||||||||||||||||||
(Amount) | (%) | (Amount) | (%) | (Amount) | (%) | (Amount) | (%) | |||||||||||||||||||||||||
Japan |
29,827 | 4.2 | 34,508 | 15.7 | 41,600 | 5.6 | 22,927 | 14.5 | ||||||||||||||||||||||||
Europe |
65,038 | 18.3 | 88,524 | 36.1 | 90,504 | 20.3 | 56,558 | 35.3 | ||||||||||||||||||||||||
North America |
34,572 | 21.0 | 37,172 | 7.5 | 47,673 | 23.9 | 24,513 | 18.7 | ||||||||||||||||||||||||
Asia |
12,696 | 0.7 | 14,268 | 12.4 | 16,993 | 4.0 | 9,776 | 15.4 | ||||||||||||||||||||||||
Other regions |
23,640 | 24.7 | 28,217 | 19.4 | 32,305 | 27.9 | 18,117 | 15.4 | ||||||||||||||||||||||||
The Middle East and Africa |
7,856 | 25.9 | 9,622 | 22.5 | 10,921 | 28.7 | 6,203 | 21.2 | ||||||||||||||||||||||||
Central and South America |
7,782 | 61.8 | 9,488 | 21.9 | 10,530 | 58.9 | 5,931 | 16.4 | ||||||||||||||||||||||||
Oceania |
8,002 | 1.3 | 9,107 | 13.8 | 10,854 | 6.9 | 5,983 | 9.1 | ||||||||||||||||||||||||
Total |
165,773 | 15.3 | 202,689 | 22.3 | 229,075 | 17.6 | 131,891 | 23.7 | ||||||||||||||||||||||||
Note: | The table above sets forth Makitas consolidated net sales by geographic area based on customers location for the periods presented. |
3. Exchange rates | ||||||||
Yen | ||||||||
For the nine | For the nine | |||||||
months ended | months ended | |||||||
December 31, 2005 | December 31, 2006 | |||||||
(Results) | (Results) | |||||||
Yen/U.S. Dollar |
112.11 | 116.19 | ||||||
Yen/Euro |
136.88 | 147.98 | ||||||
Yen | ||||||||||||
For the year | For the six | For the year | ||||||||||
ended | months ended | ending | ||||||||||
March 31, 2006 | September 30, 2006 | March 31, 2007 | ||||||||||
(Results) | (Results) | (Outlook) | ||||||||||
Yen/U.S. Dollar |
113.32 | 115.38 | 117 | |||||||||
Yen/Euro |
137.83 | 146.01 | 150 | |||||||||
4. Sales growth in local basis (major countries) | ||||
For the nine | ||||
months ended | ||||
December 31, 2006 | ||||
(Results) | ||||
U.S.A. |
(1.5 | %) | ||
Germany |
30.3 | % | ||
U.K. |
15.1 | % | ||
France |
21.5 | % | ||
China |
2.2 | % | ||
Australia |
9.9 | % | ||
11 |
5. Production ratio (unit basis) | ||||||||||||||||
For the nine | For the nine | For the year | For the six | |||||||||||||
months ended | months ended | ended | months ended | |||||||||||||
December 31, 2005 | December 31, 2006 | March 31, 2006 | September 30, 2006 | |||||||||||||
(Results) | (Results) | (Results) | (Results) | |||||||||||||
Domestic |
29.8 | % | 27.7 | % | 29.4 | % | 27.9 | % | ||||||||
Overseas |
70.2 | % | 72.3 | % | 70.6 | % | 72.1 | % | ||||||||
6. Consolidated capital expenditures, depreciation and amortization, and R&D cost | ||||||||
Yen (millions) | ||||||||
For the nine | For the nine | |||||||
months ended | months ended | |||||||
December 31, 2005 | December 31, 2006 | |||||||
(Results) | (Results) | |||||||
Capital expenditures |
7,931 | 9,146 | ||||||
Depreciation and amortization |
4,201 | 5,505 | ||||||
R&D cost |
3,575 | 3,959 | ||||||
Yen (millions) | ||||||||||||
For the year | For the six | For the year | ||||||||||
ended | months ended | ending | ||||||||||
March 31, 2006 | September 30, 2006 | March 31, 2007 | ||||||||||
(Results) | (Results) | (Outlook) | ||||||||||
Capital expenditures |
11,383 | 4,873 | 14,500 | |||||||||
Depreciation and amortization |
5,922 | 3,715 | 7,300 | |||||||||
R&D cost |
4,826 | 2,605 | 5,200 | |||||||||
12 |