Half Yearly Report

RNS Number : 1390R
Maruwa Co Ld
31 October 2011
 








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<1 April 2011 - 30 September 2011>  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<1 April 2011 - 31 March 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 10,976 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 2,148 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 38,991 million yen. This is a  15.9 up compared to the end of last fiscal year .  This is due to flotation to beef up equipments.

Total liabilities were 6,076 million yen. This is up to 9.6% compared to the previous year-end.  Total net assets were 32,915million yen. This is up to 17.1% 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

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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