1st Quarter Results

RNS Number : 1434Q
Maruwa Co Ld
29 July 2010
 



29-July-2009

MARUWA CO., LTD.

3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN

 

Consolidated financial results for the first quarter of Fiscal 2011

 

MARUWA CO., LTD. today announced its consolidated financial results for the first quarter of Fiscal 2011<1April 2010 - 30 June 2010> as follows;

I. Summary of Consolidated Financial Results

(1) Summary of consolidated operating results



JPY million



1st Quarter

1st Quarter

Change %


1 April - 30 June

1 April - 30 June



2009

2010


Net sales

2,952

4,587

55.4%

Operating income

(72)

634

-%

Income before income taxes

(12)

554

-%

Net income

(20)

375

-%





Net income per share:


JPY


  Basic

(2.04)

34.90

-%

  Diluted

-

--

--

 

(2) Summary of consolidated financial condition


As of 31 March

As of 30 June


2009

2010

Total assets

30,689

30,241

Total net assets

26,561

26,506

Equity ratio

86.5%

87.6%


 

JPY

Total net assets per share

2,470.94

2,464.31

 

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 <1 April 2010 - 31 March 2011>

The forecast figures for business results and dividends announced in 27 April 2010 were not changed.

 

*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 first quarter, there are strong indications that the world economy is recovering from the global recession. This recovery is in part due to strong market expansion in emerging countries, including China, as well as to individual governments having implemented strong economic stimulus measures.  However, because of unstable employment, sluggish personal consumption, deflation and the appreciation of the yen, there is still some uncertainty in the outlook of the both the Japanese and the world economy.

 

In these circumstances, demand for digital services market items, such as PCs and flat panel televisions, and for environmentally friendly hybrid cars has increased in Asian countries, particularly China. 

 

Because of these factors, Maruwa's turnover for this first quarter was 4,587 million yen, an increase of 55.4% from the previous quarter.  Similarly, our operating profit was 634 million yen, compared to a 72 million loss last year.  This improvement has been due to increased demand and to restructuring countermeasures, including closing and merging factories and offices and reducing costs and inventory.

 

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 first quarter sales total for the Ceramic Components Division was 4,360 million yen. This is a 58.7% increase over the same period last year, a sign of upward momentum.  The operating profit was 785 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 first quarter was 228 million yen, with an operating loss of 16 million yen.

 

 

 

 

 

 

Operating results by business segment

Review of operating results by segment









 


 

JPY million


1st Quarter

1st Quarter


1 April - 30 June

1 April - 30 June


2009

2010

Ceramic Components:

 

 

 

 

Net sales


2,748


4,360

Operating income

 

100

 

785






Lighting Equipment:





Net sales


204


228

Operating income

 

(41)

 

(16)






Total:





Net sales

2,952

4,588

Operating income

 

59

 

769


 

 

 

 

Elimination:





Net sales

 

--

 

--

Operating income

 

(131)

 

(135)






Consolidated:





Net sales

 

2,952

 

4,588

Operating income

 

(72)

 

634

 

 

Quarterly sales results of Ceramic Components segment by product division

 

3. Financial Condition

 

Total assets as of the end of this first quarter were 30,241 million yen, down 1.5from the end of last fiscal year .  This reflected that sales from the Lighting Equipment segment tend to be posted at fiscal year-end.  Total liabilities decreased 393 million yen to 3,735million yen from the previous year-end.  Total net assets decreased 54 million yen to 26,506 million yen because of an increase in foreign currency translation adjustments.

 

Cash and cash equivalents at the end of this first quarter were 8,385million yen.

Net income before income taxes was 553 million yen, and depreciation was 370 million yen.  As a result, net cash provided from operating activities was 118 million yen.

Net cash used in investing activities was 380 million yen due especially to payments for purchase of property, plant and equipment, 267 million yen.

Net cash used in financing activities was 142 million yen, mainly used for dividends paid by the parent company, 150 million yen.



Consolidated Balance Sheet


 

JPY million


1st Quarter

(Reference)


As of 30 June

As of 31st March


2010

2010

ASSETS



Current assets:



Cash & deposits

8,924

9,305

Trade notes and accounts  receivable

5,413

5,314

Inventories:

2,921

2728

Deferred tax assets

223

294

Other current assets

182

114

Allowance for doubtful  accounts

(11)

(12)

Total current assets

17,652

17,743




Property, plant & equipment:



Land

3,154

3,161

Buildings & structures

3,865

3,941

Machinery & equipment

3,453

3,488

Other

284

280

Construction in progress

182

314

Total property, plant & equipment

10,938

11,184

Less, accumulated depreciation



Net property, plant & equipment

10,938

11,184




Investment & other assets:



Total investments & other assets

1,651

1,762




Total assets

30,241

30,689

 

 

 

 




LIABILITIES



Current liabilities:



Trade notes & accounts payable

1,573

1,727

Current portion of long-term debt

5

5

Accrued income taxes

137

265

Accrued bonus

158

313

Accrued bonus to directors

2

11

Notes payable for property acquisitions

369

352

Other

974

918

Total current liabilities

3,218

3,591




Long-term liabilities:



Long-term debt

119

120

Diferrred tax liabilities

138

158

Other

260

259

Total long-term liabilities

517

537




Total liabilities

3,735

4,128




NET ASSETS



Shareholders' equity:



Common stock

6,710

6,710

Capital surplus

9,747

9,747

Retained earnings

12,275

12,051

Treasury stock, at cost

(678)

(689)

Total shareholders' equity

28,054

27,819




Valuation and translation adjustments:



Net unrealized gains(losses)on available-for-sale securities

(58)

(128)

Foreign currency translation adjustments

(1,504)

(1,140)

Total valuation and translation adjustments

(1,562)

(1,268)




A subscription warrant and Minority stockholders share

14

10

Total shareholders' equity

14

10

Total net assets

26,506

26,561

Total liabilities and net assets

30,241

30,689



Consolidated Statement of Income


 

JPY million


1st Quarter

1st Quarter


1 April - 30 June

1 April - 30 June


2009

2010

Net sales

2,952

4,587

Cost of sales

2,298

3,033

Gross profit

654

1,554

Selling, general & administrative

726

920

 expenses



Operating income

(72)

634

Other income (expenses):



Interest & dividend income

13

9

Interest expenses

0

1

Rent income

30

29

Rent expenses on real estates for investments

(12)

(12)

Foreign exchange gain (loss), net

20

27

Amortization of negative goodwill

14

-

Gain on sales of property, plant and equipment

2

0

Loss on disposal or sales of property, plant and equipment

(15)

(9)

Loss on valuation of inventories securities

-

(137)

Other, net

8

12

Other income (expenses), net

60

(80)

Income before income taxes

(12)

554




Income taxes:



Current

11

121

Deferred

(3)

58

Total income taxes

8

179

Net income

(20)

375

 

 

 

 



Consolidated Statement of Cash Flows


JPY million

 


For year ended

For year ended


30th June

30th June


2009

2010

Cash flows from operating activities:



Income before income taxes

(12)

554

Adjustments for:



Depreciation

396

370

Amortization of negative goodwill

(14)

-

Decrease in allowance for doubtful accounts

(2)

(2)

Gain (Loss)on Valuation investment securities

-

137

Gain on disposal or sales of property, plant & equipment

13

8

Interest & dividend income

(15)

(10)

Foreign exchange (gain) loss

(14)

7

Decrease (increase) in trade notes & accounts receivable

860

(167)

Increase in inventories

303

(243)

Decrease in trade notes & accounts payable

(412)

(126)

Other

(174)

(161)

Sub-total

929

367

Interest & dividend income received

15

13

Interest expenses paid


(1)

Income taxes paid

(8)

(261)

Net cash provided by operating activities

936

118




Cash flows from investment activities:



Payments into time deposits

(18)

(137)

Payments for purchase of property, plant & equipment

(397)

(269)

Proceeds from sales of property, plant & equipment

49

2

Payments for purchase of investment securities

(118)

(48)

Payments for purchase of intangible assets

(1)

(1)

Other

143

72

Net cash used in investing activities

(342)

(381)




Cash flows from financing activities:



Payments of long-term debt

-1

-1

Cash dividends paid

-150

-150

Payments for purchase of treasury stock

4

9

Net cash used in financing activities

(147)

(142)




Effect of exchange rate changes on cash & cash equivalents

56

-73

Net increase (decrease) in cash & cash equivalents

503

(478)

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

7,565

8,386

 

 


This information is provided by RNS
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