3rd Quarter Results

RNS Number : 2643E

Maruwa Co Ld

06 February 2015

 



			06 Feb 2015
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the third quarter of Fiscal 2014
MARUWA CO., LTD. today announced its consolidated financial results for the third quarter of Fiscal 2014<1 April 2014 - 31 Dec 2014>  as follows;
I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
		JPY million
	3rd Quarter	3rd Quarter	Change %
	1 April - 31 Dec	1 April - 31 Dec
	2013	2014
Net sales	24,157	24,227	0.3%
Operating income	2,321	2,002	-13.8%
Income before income taxes	2,663	2,197	-17.5%
Net income	1,890	1,390	-26.4%
Net income per share:		JPY
Basic	153.23	112.57	-26.5%
Diluted	153.15	112.56	-26.5%
(2) Summary of consolidated financial condition
	As of 31 March	As of 31 Dec	Change %
	2014	2014
Total assets	49,569	50,453	1.8%
Total net assets	40,016	41,991	4.9%
Equity ratio	80.7%	83.2%	2.5%
		JPY
Total net assets per share	3,239.88	3,399.84
II. Dividends
		JPY per share
	Fiscal 2013	Fiscal 2014
		(forecast)
Interim	17	18
Year-end	17	18
Total	34	36
*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.
Ⅲ. Outlook for the fiscal 2014<1 April 2014 - 31 Mar 2015>
The forecast figures for business results and dividends announced in 30　Jly 2014 are changed on full year.
		million JPY
		Full year
Net sales		32,000
Operating income		2,400
Net income		1,800
Net income per share		145.75

Review of Operations

1. Review of Operations

In this consolidated cumulative third quarter, it has gradually risen on growing expectations of the United States economic recovery due to a rising trend of capital investment and personal consumption. The European financial market, momentum of recovery and slow improvement of debt problem has become a weak standstill. Meanwhile, emerging markets including China and South-East Asian countries has been under an uncertain condition because of concerns over slowdown in growth and frequent political unrest.

In the Japanese economy, market has generally recovered due to improvement of income environment by turnaround of corporate performance, depreciation of the yen and rising stock prices led by economic and fiscal policy of 'Abenomics'. However, the economic condition has still been uncertain because of reverse effect caused by a last-minute surge in demand due to the consumption tax hike, slowdown growth of export due to a stagnation of emerging markets and a high level price of raw materials from yen depreciation.

Under the uncertain market condition, the MARUWA Group's business results during this quarter has stayed firm especially in ceramic products for power modules related to energy-savings and environment which are one of our differentiated products in the ceramic components division. On the other hand, in the lighting equipment division, the plans of construction period will be delayed after the fiscal year and it seems to be difficult to achieve the prior forecast. This is because of soaring of personnel expense and material price due to the increase of demand for construction (i.g. reconstruction demand for Tohoku and facility maintenance for Tokyo Olympics).

The forecast of this fiscal year, however, remains unchanged from the prior forecast because it is expected to continue to steadily increase in the ceramic components division.

As a result, our consolidated sales were 24,227 million yen (increase 0.3% year on year). Our operating income was 2,002 million yen (decrease 13.8% year on year). Ordinary profit was 2,494 million yen (decrease 6.9% year on year). Net income was 1,390 million yen (decrease 26.4% year on year).

2.Operating Results by Business Division

The Ceramic Components Division

The total sales for this business segment was 16,328 million yen (increase 2.9% year on year).

Markets related to energy-saving and environment are still brisk and the sales of ceramic products for HEV and LED remained strong.

About the profit side, we perform reviews of stock for the profitability improvement and the production facility with business withdrawal or a decrease in production of the communication terminal business in the main customer. Operating income was 2,748 million yen (decrease 7.1% year on year).

Lighting Equipment Division

The total sales for this business segment was 7,900 million yen (decrease 4.6% year on year).

We released new LED road lights and pushed forward active sales activities, but the high value-added illumination of YAMAGIWA decreased by having been behind the original order plan.

The profit, we push forward constitution reinforcement of YAMAGIWA and result comes out smoothly. An operating loss was 72 million yen.

We will make efforts in the rebuilding of the sales strategy which kept the strength of development, release and the product of the new illumination apparatus using ceramic LED module and them which let a ceramic technology cultivated in our group fuse alive in future.

Review of Operations
Review of operating results by segment
				JPY million
	3rd Quarter		3rd Quarter
	1 April - 31 Dec		1 April - 31 Dec
	2013		2014
Ceramic Components:
Net sales		15,873		16,328
Operating income		2,959		2,748
Lighting Equipment:
Net sales		8,284		7,900
Operating income		64		(72)
Total:
Net sales	24,157		24,227
Operating income		3,023		2,676
Elimination:
Net sales		--		--
Operating income		(702)		(674)
Consolidated:
Net sales		24,157		24,227
Operating income		2,321		2,002

3. Financial Condition

Total assets as of the end of this second quarter were 50,453 million yen, increase　1.8％ from the end of last fiscal year. Total liabilities were　8,462 million yen, decrease 11.4% from the end of last fiscal year. Total net assets were 41,991 million yen ,increase 4.9% from the end of last fiscal year.

The forecast figures for business results and dividends announced in 30　July 2014 are changed on full year.

Consolidated Balance Sheet
		JPY million
	3rd Quarter	(Reference)
	As of 31 Dec	As of 31 March
	2014	2014
ASSETS
Current assets:
Cash & deposits	13,561	13,362
Trade notes and accounts  receivable	8,610	8,870
Electronically recorded monetary claims-operating	317	374
Inventories:	7,408	6,025
Deferred tax assets	385	439
Other current assets	783	727
Allowance for doubtful  accounts	(15)	(15)
Total current assets	31,049	29,782
Property, plant & equipment:
Land	3,527	3,512
Buildings & structures	4,818	4,981
Machinery & equipment	6,198	6,169
Other	594	543
Construction in progress	1,195	1,539
Total property, plant & equipment	16,332	16,744
Goodwill	499	716
Other	449	410
Total Intangible assets	948	1,126
Investment & other assets:
Total investments & other assets	2,124	1,917
Total assets	50,453	49,569

LIABILITIES
Current liabilities:
Trade notes & accounts payable	3,333	3,639
Current portion of long-term debt	1,072	445
Accrued income taxes	124	896
Accrued bonus	265	436
Accrued bonus to directors	2	10
Notes payable for property acquisitions	309	453
Other	2,392	1,726
Total current liabilities	7,497	7,605
Long-term liabilities:
Long-term debt	295	1,159
Diferrred tax liabilities	190	175
Provision for environmental measures	26	26
Other	454	589
Total long-term liabilities	965	1,948
Total liabilities	8,462	9,554
NET ASSETS
Shareholders' equity:
Common stock	8,647	8,647
Capital surplus	11,947	11,947
Retained earnings	20,330	19,372
Treasury stock, at cost	(47)	(47)
Total shareholders' equity	40,877	39,919
Valuation and translation adjustments:
Net unrealized gains(losses)on available-for-sale securities	113	48
Foreign currency translation adjustments	998	46
Total valuation and translation adjustments	1,111	94
A subscription warrant　and　Minority stockholders share	3	3
Total shareholders' equity	3	3
Total net assets	41,991	40,016
Total liabilities and net assets	50,453	49,569

Consolidated Statements of Income
		JPY million
	3rd Quarter	3rd Quarter
	1 April - 31 Dec	1 April - 31 Dec
	2013	2014
Net sales	24,157	24,227
Cost of sales	15,997	16,527
Gross profit	8,160	7,700
Selling, general & administrative	5,839	5,698
expenses
Operating income	2,321	2,002
Interest & dividend income	37	28
Interest expenses	(6)	(10)
Rent income	87	73
Rent expenses on real estates for investments	(43)	(28)
Foreign exchange gain (loss), net	258	402
Gain on sales of noncurrent assets	1	3
Compensation income	65	-
Subsidy income	-	755
Non operating expenses	(19)	-
Loss on disposal or sales of property, plant and equipment	(51)	(15)
Loss on reduction of noncurrent assets	-	(738)
Provision for environmental measures	(26)	-
Loss on abandonment of inventories	-	(91)
Gain on redemption of securities	7	21
Impairment loss	(12)	(192)
Other, net	44	(13)
Other income (expenses), net	342	195
Income before income taxes	2,663	2,197
Income taxes:
Current	840	765
Deferred	(67)	41
Total income taxes	773	806
Minority interests in income	0	0
Net income	1,890	1,390

 

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