3rd Quarter Results

RNS Number : 4614Z

Maruwa Co Ld

06 February 2014

 



			6th February 2014
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Consolidated financial results for the Second quarter of Fiscal 2014
MARUWA CO., LTD. today announced its consolidated financial results for the third quarter of Fiscal 2013<1 April 2013 - 31 Dec 2013>  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
	2012	2013
Net sales	15,849	24,157	52.4%
Operating income	1,710	2,321	35.7%
Income before income taxes	1,936	2,663	37.6%
Net income	1,233	1,890	53.3%
Net income per share:		JPY
Basic	100.19	153.23	52.9%
Diluted	100.16	153.15	52.9%
(2) Summary of consolidated financial condition
	As of 31 March	As of 31 Dec	Change %
	2013	2013
Total assets	45,610	48,227	5.7%
Total net assets	37,141	39,484	6.3%
Equity ratio	81.4%	81.9%	0.5%
		JPY
Total net assets per share	3,014.90	3,198.31
II. Dividends
		JPY per share
	Fiscal 2013	Fiscal 2014
Interim	15	17
Year-end	15	(forecast)  17
Total	30	(forecast)  34
*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 2013<1 April 2013 - 31 Dec 2013>
The forecast figures for business results and dividends announced in 15　May 2013 are not changed.
*The financial statements are prepared in conformity with the accounting principles generally accepted in Japan.
*Consolidated subsidiaries: 14companies.

Review of Operations

1. Review of Operations

In this third quarter , the growth of the world economy has slowed due to the little clear expanded Eurozone debt problem and to the rapidly developing economies in emerging countries, including China, rapidly losing steam, and in spite of an indication of economic recovery in the United States.

The Japanese economy has attempted after new government appointment, the drop in the value of the yen and the positive stock market makes Japanese economy recover slowly.

In this severe economic situation, the MARUWA Group's business results during this first quarter of this fiscal year were in line with our plans due to a strong demand for ceramic substrate for power modules, new products for smart phone devices and LED lighting.

As a result, our consolidated sales were 24,179 million yen. (This is up 52.4% compared to the same period last year)  Our operating income was 2,321 million yen. (This is up 35.8% compared to the same period last year)  Ordinary profit was 2,680 million yen (This is up 34.7% compared to the same period last year). Net income was 1,890 million yen (This is up 53.3% compared to the same period last year).

2.Operating Results by Business Division

The Ceramic Components Division

The total sales for this business segment was 15,873 million yen. (This is up 9.8% compared to the same period last year).

The market for environment-related products, the power modules market and quartz glass have remained strong.

Operating income was 2,959 million yen.

Lighting Equipment Division

The turnover was 8,284 million yen.  This is a 492.5% increase over the same period last year.   Operating income was 64 million yen. This is a 21.3% decrease over the same period last year. The consolidated sales in this business is large by YAMAGIWA which became the subsidiary in last December having been connected. included a review of transportation, the distribution, an office, a warehouse, the rationalization expense including the showroom move that the new YAMAGIWA system started in April and planned earnings structure reinforcement. Therefore we improved a loss for the operating income.

This improvement is due to a consistent increase in inquiries and orders for LED lighting devices in the public utilities markets. New types of products were very successful. MARUWA is continuing to press forward with the development and promotion of new LED lighting products. 

Review of Operations
Review of operating results by segment
				JPY million
	3rd Quarter		3rd Quarter
	1 April - 31 Dec		1 April - 31 Dec
	2012		2013
Ceramic Components:
Net sales		14,450		15,873
Operating income		2,265		2,959
Lighting Equipment:
Net sales		1,398		8,284
Operating income		82		64
Total:
Net sales	15,848		24,157
Operating income		2,347		3,023
Elimination:
Net sales		--		--
Operating income		(637)		(702)
Consolidated:
Net sales		15,848		24,157
Operating income		1,710		2,321

3. Financial Condition

Total assets as of the end of this second quarter were 48,227million yen, up　5.7％ from the end of last fiscal year .  Total liabilities were 8,743 million yen up 3.2% from the previous year-end.Total net assets were 39,484 million yen, up 6.3% from the end of last fiscal year.

Consolidated Balance Sheet
			JPY million
	3rd Quarter		(Reference)
	As of 31 Dec		As of 31 March
	2013		2013
ASSETS
Current assets:
Cash & deposits	12,525		11,312
Trade notes and accounts  receivable	8,302		8,560
Electronically recorded monetary claims-operating	246		32
Inventories:	6,175		5,493
Deferred tax assets	416		260
Other current assets	766		619
Allowance for doubtful  accounts	(23)		(23)
Total current assets	28,407		26,253
Property, plant & equipment:
Land	3,515		3,625
Buildings & structures	4,148		4,039
Machinery & equipment	6,491		6,447
Other	592		622
Construction in progress	1,907		1,792
Total property, plant & equipment	16,653		16,525
Goodwill	789		1,006
Other	419		368
Net property, plant & equipment	17,861		17,899
Investment & other assets:
Total investments & other assets	1,959		1,458
Total assets	48,227		45,610
LIABILITIES
Current liabilities:
Trade notes & accounts payable		2,859		3,086
Current portion of long-term debt		339		339
Accrued income taxes		513		607
Accrued bonus		252		391
Accrued bonus to directors		2		5
Notes payable for property acquisitions		661		315
Other		1,846		1,718
Total current liabilities		6,472		6,461
Long-term liabilities:
Long-term debt		1,363		789
Diferrred tax liabilities		286		104
Provision for retirement benefits		-		876
Provision for environmental measures		26		-
Other		596		239
Total long-term liabilities		2,271		2,008
Total liabilities		8,743		8,469
NET ASSETS
Shareholders' equity:
Common stock		8,647		8,647
Capital surplus		11,940		11,909
Retained earnings		18,677		17,181
Treasury stock, at cost		(62)		(134)
Total shareholders' equity		39,202		37,603
Valuation and translation adjustments:
Net unrealized gains(losses)on available-for-sale securities		66		16
Foreign currency translation adjustments		208		(511)
Total valuation and translation adjustments		274		(495)
A subscription warrant　and　Minority stockholders share		8		33
Total shareholders' equity		8		33
Total net assets		39,484		37,141
Total liabilities and net assets		48,227		45,610

Consolidated Statements of Income
		JPY million
	3rd Quarter	3rd Quarter
	1 April - 31 Dec	1 April - 31 Dec
	2012	2013
Net sales	15,849	24,157
Cost of sales	11,387	15,997
Gross profit	4,462	8,160
Selling, general & administrative	2,752	5,839
expenses
Operating income	1,710	2,321
Other income (expenses):
Interest & dividend income	29	37
Interest expenses	(2)	(6)
Rent income	72	87
Rent expenses on real estates for investments	(39)	(43)
Environmental expenses	(19)	-
Foreign exchange gain (loss), net	213	258
Gain on sales of property, plant and equipment	1	1
Compensation income	-	65
Provision for environmental measures	-	(26)
Non operating expenses	-	(19)
Loss on disposal or sales of property, plant and equipment	(51)	(44)
Gain on valuation of inventories securities	2	7
State subsidy	207	-
Loss on reduction of noncurrent assets	(207)	-
Other, net	20	25
Other income (expenses), net	226	342
Income before income taxes	1,936	2,663
Income taxes:
Current	585	840
Deferred	118	(67)
Total income taxes	703	773

 

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