Final Results

RNS Number : 5410F

Maruwa Co Ld

27 April 2011

 



								27 Apr. 2011
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Final Results for Fiscal 2011
MARUWA CO., LTD. today announced its consolidated business results for the full fiscal year ended 31st March, 2011 as follows;
*The financial statements are prepared in conformity with the accounting principles generally accepted in Japan.
*US dollar amounts are converted for convenience only at the rate of US$1 = 83.15yen.
*Consolidated subsidiaries:11 companies  (Maruwa (Malaysia) Sdn. Bhd., Taiwan Maruwa Co., Ltd., MARUWA Electronics (Taiwan) Co., Ltd., Maruwa Europe Ltd., Maruwa America Corp., Maruwa Korea Co., Ltd., Maruwa (Shanghai) Trading Co., Ltd., MARUWA Electronic
I. Summary of Consolidated Results
(1) Summary of consolidated statement of income
				JPY million				USD thousand
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2010		2011				2011
Net sales		15,405		20,011		29.9%		166,391
Operating income		1,289		3,035		135.5%		25,236
Income before income taxes		1,231		2,898		135.4%		25,344
Net income		1,105		2,012		82.1%		17,977
				JPY				USD
Net income per share (Basic)		102.97		187.14		81.7%		2.25
(Diluted)		--		--		--		--
*Average number of issued shares		10,730,160		10,749,267
(2) Summary of consolidated financial condition
				JPY million				USD thousand
		As of 31st March		As of 31st March		Change %		As of 31st March
		2010		2011				2011
Total Assets		30,689		33,649		9.6%		286,789
Total net assets		26,560		28,105		5.8%		233,693
Equity ratio		86.5%		83.5%		-3.0%
				JPY				USD
Total net assets per share		2,470.94		2,611.82		5.7%		31.41
*Number of issued shares at the year end		10,745,230		10,749,937
(3) Summary of consolidated statement of cash flows
				JPY million				USD thousand
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2010		2011				2011
Net cash provided by operating activities		2,922		2,549		-12.8%		22,442
Net cash used in investing activities		(917)		(2,646)		-188.5%		(22,001)
Net cash used in financing activities		(248)		(307)		-23.8%		(2,553)
Cash and cash equivalents  at end of term		8,863		8,380		-5.4%		70,927
II. Dividends				III. Outlook for fiscal 2011 ending 31 March 2011
		JPY per share						JPY million
	Fiscal 2011	Fiscal 2012				Half year		Full year
		(forecast)		Net sales		9,600		23,100
Interim	15	15		Operating income		1,480		3,560
Year-end	15	15		Net income		938		2,210
Annual	30	30		Net income per share		87.26		205.58
*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 and Financial Condition
I. Operating Results
								JPY million
	Fiscal 2010				Fiscal 2011
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Net sales	2,952	3,655	3,953	4,845	4,587	4,989	4,894	5,541
Operating income	(72)	271	443	647	634	841	756	804
Net income	(22)	313	328	486	375	538	496	603
				JPY million
	Previous		Current
	For year ended		For year ended		change
	31st March 2010		31st March  2011		amount		%
Net sales	15,405		20,011		4,606		29.9%
Operating income	1,289		3,035		1,746		135.5%
Net income	1,105		2,012		907		82.1%

(1) Review of operations

　　　The world economy tended in general toward recovery in this fiscal year, though there is political instability in North Africa and Middle East and financial crisis in Euro zone nations triggered credit impairment. The trend toward recovery is in part due to the strong market expansion in emerging countries, particularly China, and the recovering American economy.

The recovery of the world economy caused an increase in production activity and profit in Japan. There was gradual recovery in terms of individual consumption, employment and income due to government-led economic policy. As a result of these factors, the Japanese economy in the first half was on a recovery trend.

However the economy has not attained a full-scale recovery in the second half due to a slowdown since autumn. This has been caused by the sharp rise and continuation of a strong yen. This has resulted in rising raw material costs, mainly in terms of crude oil. Additionally, economic conditions have deteriorated due to the occurrence of the devastating Tohoku Earthquake on 2011/3/11.

In these circumstances, the electronic component market in the first half of the fiscal year was strong. This was due in part to a recovering consumer demand, fueled by the expansion of digital service items in China and other Asian countries. This was also due to activation of capital expenditure for semiconductors, which then influenced a recovering demand for semiconductors.

In the second half, though there was an impact from the slowdown of the recovering economy, we worked actively to build up new product lines in the areas of energy saving, ecology-related products, such as HEV, LED lighting and new products for information terminal markets, mainly for smartphone use.

Because of these factors, Maruwa's turnover for this fiscal year was 20,011 million yen. (This is up 29.9% compared to last year.) 

We improved 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 operating income was 3,035 million yen, up 135.4% compared to last year. Our net income was 2,012 million yen, an increase of 82.1% compared to last year.

(2) Review of operating results by business segment
				JPY million
			Current
	For year ended		For year ended
	31st March 2010		31st March 2011
Ceramic Components:
Net sales		13,587		18,061
Operating income		1,705		3,498
Lighting Equipment:
Net sales		1,818		1,950
Operating income		104		136
Total:
Net sales		15,405	20,011
Operating income		1,809	3,634
Elimination:
Net sales		--	--
Operating income		(520)	(599)
Consolidated:
Net sales		15,405	20,011
Operating income		1,289	3,035

　2. Review of operating results by business segment

Ceramic Components

The total sales for this business segment was 18,061 million yen, up 32.9% compared to last year. An increase in orders was sustained due to the recovering demand for digital consumer products in China and other Asian countries. Ceramics for power modules for the energy saving, ecology related market, such as HEV, EV and wind power generators, made good progress.

The operating income was 3,498 million yen(up 105.2% compared to last year) we exceeded the level of the previous year due to improvement in productivity of existing products, cost reduction and contribution of new product offerings with high added value.

Lighting Equipment

Total sales of the Lighting Equipment segment was 1,950 million yen, up 7.3 % compared to last year. Operating income was 136 million yen, up 31% compared to last year.

The sales of traditional lighting equipment are decreasing.

However, sales for LED lighting equipment are rising, and new product development in this area and expansion of sales are improving operational profit. There is increased demand for ecology related products, such as LED lighting.

(3) Outlook of the Full Fiscal 2011
				JPY million
		For year ended		For year ending	Change
		31st March 2011		31st March 2012	%
Net sales	20,011		23,100			15.4%
Operating income	3,035		3,560			17.3%
Net income	2,012		2,210			9.8%
Sales by segment				JPY million
		For year ended		For year ending	Change
		31st March 2011		31st March 2012	%
Ceramic Components		18,061		20,800		15.2%
Lighting Equipment		1,950		2,300		17.9%
Total		20,011		23,100		15.4%
*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.

3. Financial Condition

Total assets as of the end of this fiscal year were 33,649 million yen, up 9.6％from the end of previous year. 

Total liabilities increased 34.3% to 5,544 million yen from the end of previous year and this was due to a increase in trade notes, accounts payable and income tax payable.

Total net assets were 28,106 million yen.

As a result, equity ratio was 83.4%.

Cash and cash equivalents at the end of this fiscal year were 8,380 million yen.

Cash provided by operating activities were 2,549 million yen. This is a 373 million yen decrease from the previous year.

Net cash used in investing activities was 2,646 million yen due in particular to payments for purchase of property. There was a 1,729 million yen increase from the previous year.

Net cash used in financing activities was 307 million yen. This was 59 million yen increase from the previous year.

Financial Condition
					JPY million		JPY million
		As of 31st March		As of 31st March			Change
		2010		2011			Amount	%
Total assets			30,689		33,649		2,960	9.6%
Total liabilities			4,128		5,544		1,416	34.3%
Total net assets			26,560		28,105		1,545	5.8%
Equity ratio			86.5%		83.5%		-3.0%
					JPY million		JPY million
		For year ended		For year ended			Change
		31st March 2010		31st March 2011			Amount	%
Net cash provided by  operating activities			2,922		2,549		-373	-12.8%
Net cash used in  investing activities			(917)		(2,646)		-1,729	-188.5%
Net cash used in  financing activities			(248)		(307)		-59	-23.8%
Cash and cash equivalents  at end of year			8,863		8,380		-483	-5.4%
Net sales			15,405		20,011		4,606	29.9%
Capital expenditure			1,209		1,585		376	31.1%
Depreciation			1,637		1,584		-53	-3.2%
Trends of cash-flows indices
							JPY million
		For year ended		For year ended		For year ended
		31st March 2009		31st March 2010		31st March 2011
Equity ratio			87.9%		86.5%		83.5%
Equity ratio at market value			36.4%		69.5%		86.1%
Interest-bearing  debt to cash flows ratio (year)			0.0		0.0		0.0
Interest coverage ratio			1,809.3		1,419.8		1,217.8

4. Outlook for the next fiscal year

The outlook for the future economy is characterized by a persistent wariness caused by the financial crisis in Euro zone nations triggering credit impairment and by political instability in North Africa and Middle East. However, a general trend toward recovery is predicted due to continuing upward momentum in America and economic growth in China and other emerging countries.

Meanwhile, the total scale of the damage caused by the 2011 Tohoku Earthquake is still uncertain, and an unpredictable atmosphere is expected to remain.

However, the energy saving, ecology related market in which we situate our growth strategy, is expected to grow at a solid rate.

Furthermore, new products for smartphone and other information terminal markets are expected to expand rapidly.

For capital investment, we will invest actively in the energy saving, ecology related market. We will also invest in new R&D, with increased staff, to work for the development of new products, with high added value.

We forecast that consolidated sales for the next fiscal year will be 23,100 million yen, up 15.4% compared to last year. In terms of operating income, net income is expected to be 3,560 million yen, up17.3%   compared to last year, 2,210 million yen (Up9.9% compared to last year).

We will strengthen the corporate structure and improve profitability, which will benefit all stakeholders, including shareholders.

Cautionary statements: The above forecasts are based on the present business environment and currently-available information, and include forward-looking statements involving risks and uncertainties. The reader is cautioned not to place reliance entirely on the above forecast for making investment decisions. Due to a number of factors, such as future economic situations and market environment changes, actual results may differ significantly from these estimates.

Consolidated Balance Sheets
	JPY million	JPY million		USD thousand
	As of 31st March	As of 31st March	Change	As of 31st March
	2010	2011		2011
ASSETS
Current assets:
Cash & deposits	9,305	8,923	(382)	76,402
Trade notes and accounts  receivable	5,314	6,540	1,226	43,816
Inventories	2,728	3,671	943	31,243
Deferred tax assets	294	221	(73)	1,598
Other current assets	114	311	197	2,687
Allowance for doubtful	(12)	(12)	0	(81)
accounts
Total current assets	17,743	19,654	1,911	155,665
Property, plant & equipment:
Land	3,161	3,155	(6)	32,169
Buildings & structures	3,941	3,782	(159)	38,644
Machinery & equipment	3,488	3,494	6	40,212
Other	280	384	104	3,665
Construction in progress	314	1,525	1,211	4,510
Net property, plant &	11,184	12,340	1,156	119,200
equipment	233	221
Investments & other assets:
Investment securities	427	337	(90)	2,802
Deferred tax assets	12	16	4	133
Property & equipment for investments	932	919	(13)	7,641
Other	184	175	(9)	1,455
Allowance for doubtful accounts	(26)	(13)	13	(108)
Total investments & other assets	1,529	1,434	(95)	11,924
Total assets	30,689	33,649	2,960	286,789

LIABILITIES
Current liabilities:
Trade notes & accounts payable	1,727	2,105	378	17,503
Current portion of long-term debt	5	5	0	42
Accrued income taxes	265	598	333	4,972
Accrued bonus	313	345	32	2,869
Accrued bonus for directors	11	22	--	183
Notes payable for property acquisitions	352	669	317	5,563
Other current liabilities	918	1,229	311	10,219
Total current liabilities	3,591	4,973	1,382	41,350
Long-term liabilities:
Long-term debt	120	116	(4)	965
Deferred tax liabilities	158	201	43	1,671
Other	259	254	(5)	2,112
Total long-term liabilities	537	571	34	4,748
Total liabilities	4,128	5,544	1,416	46,098
NET ASSETS
Shareholders' equity:
Common stock	6,710	6,710	--	55,794
Capital surplus	9,747	9,747	--	81,046
Retained earnings	12,051	13,750	1,699	114,331
Treasury stock, at cost	(689)	(679)	10	(5,646)
Total shareholders' equity	27,819	29,528	1,709	245,525
Valuation and translation adjustments:
Net unrealized gains (losses)	(128)	(50)	78	(416)
on available-for-sale securities				0
Foreign currency  translation adjustment	(1,140)	(1,402)	(262)	(11,658)
Total valuation and translation  adjustments	(1,268)	(1,452)	(184)	(12,073)
A subscription warrant　and　Minority stockholders share	9	29	-	241
Total shareholders' equity	9	29	20	241
Total net assets	26,560	28,105	1,545	233,693
Total liabilities & net assets	30,688	33,649	2,961	279,791

Consolidated Statements of Income
	JPY million	JPY million		USD thousand
	For year ended	For year ended	Change	For year ended
	31st March	31st March		31st March
	2010	2011		2011
Net sales	15,405	20,011	4,606	166,391
Cost of sales	11,005	13,318	2,313	110,739
Gross profit	4,400	6,693	2,293	55,652
Selling, general & administrative expenses	3,111	3,658	547	30,416
Operating income	1,289	3,035	1,746	25,236
Other income (expenses):
Interest and dividend income	58	48	(10)	399
Interest expenses	(2)	(2)	0	(17)
Amortization of negative goodwill	58	--		0
Foreign exchange gain (loss), net	(102)	(89)	13	(740)
Gain on sales of property, plant and equipment	54	55		457
Loss on disposal or sales of property, plant and equipment	(165)	(20)		(166)
Gain on sales or valuation  of investment securities	25	0		0
Loss on valuation of inventories	--	(150)		(1,247)
Early extra retirement payments	(16)	--		0
Loss by the disaster	--	(26)		(216)
Other, net	32	47	15	391
Other income (expenses), net	(58)	(137)	(79)	(1,139)
Income before income taxes	1,231	2,898	1,667	24,097
Income tax expenses:
Current	288	750	462	6,236
Deferred	(162)	136	298	1,131
Total income taxes	126	886	760	7,367
Net income	1,105	2,012	907	16,730

Consolidated Statements of Changes in Net Assets
					JPY million
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2010	6,710	9,747	12,051	(689)	27,819
Effect of changes in accounting policies applied to foreign subsidiaries
Cash dividends			(312)		(312)
Net income			2,012		2,012
Change of scope of consolidation
Purchase of treasury stock				0	0
Disposal of treasury stock			(1)	10	9
Other changes
Total changes during the year			800	52	852
Balance at 31 March 2011	6,710	9,747	13,750	(679)	29,528

					JPY million
	Valuation and translation adjustment
	Net unrealized gains on available-for-sale securities	Foreign currency translation adjustment	Total valuation and translation adjustment	A subscription warrant　and　Minority stockholders share	Total net assets
Balance at 31 March 2010	(128)	(1,140)	(1,268)	9	26,560
Effect of changes in accounting policies applied to foreign subsidiaries					0
Cash dividends					(312)
Net income					2,012
Change of scope of consolidation
Purchase of treasury stock					0
Disposal of treasury stock					9
Other changes	79	(262)	183	19	(164)
Total changes during the year	72	342	415	10	1,276
Balance at 31 March 2011	(50)	(1,402)	(1,452)	29	28,105

					USD thousand
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2010	55,794	81,046	100,204	(5,729)	231,315
Effect of changes in accounting policies applied to foreign subsidiaries
Cash dividends			(2,793)		(2,793)
Net income			10,280		10,280
Change of scope of consolidation
Purchase of treasury stock			--	(3)	(3)
Disposal of treasury stock			(50)	83	446
Other changes
Total changes during the year			7,437	490	7,930
Balance at 31 March 2011	55,794	81,046	114,331	(5,646)	245,525

					USD thousand
	Valuation and translation adjustment
	Net unrealized gains on available-for-sale securities	Foreign currency translation adjustment	Total valuation and translation adjustment	A subscription warrant　and　Minority stockholders share	Total net assets
Balance at 31 March 2010	(1,064)	(9,479)	(10,543)	9	220,846
Effect of changes in accounting policies applied to foreign subsidiaries					0
Cash dividends					(2,594)
Net income					16,730
Change of scope of consolidation					0
Purchase of treasury stock					0
Disposal of treasury stock					75
Other changes	674	3,184	3,858	90	3,871
Total changes during the year	674	3,184	3,858	90	10,610
Balance at 31 March 2011	(416)	(11,658)	(12,073)	241	233,693

Consolidated Statement of Cash Flows
	JPY million	JPY million		USD thousand
	For year ended	For year ended	Change	For year ended
	31st March	31st March		31st March
	2010	2011		2011
Cash flows from operating activities:
Income before income taxes	1,231	2,898	1,667	24,097
Adjustments for:
Depreciation	1,637	1,584	(53)	13,171
Amortization of negative goodwill	(58)	--	58	0
Decrease in allowance for doubtful accounts	(5)	(13)	(8)	(108)
Loss on disposal of property, plant & equipment	72	20	(52)	166
Interest & dividend income	(58)	(48)	10	(399)
Foreign exchange (gain) loss	5	8	3	67
Gain on sales of investment securities	(14)	0	14	0
Loss on valuation of inventories	--	150	150	1,247
Decrease (increase) in trade notes & accounts receivable	(948)	(1,272)	(324)	(10,577)
Increase in inventories	393	(979)	(1,372)	(8,140)
Decrease in trade notes & accounts payable	355	409	54	3,401
Other	226	211	(15)	1,754
Sub-total	2,836	2,968	132	24,679
Interest & dividend income received	59	48	(11)	399
Interest expenses paid	(3)	(2)	1	(17)
Income taxes paid	(58)	(465)	(407)	(3,866)
The amount of corporation tax return	88	--	-	0
Net cash provided by operating activities	2,922	2,549	(373)	21,195
Cash flows from investment activities:
Payments into time deposits	(57)	(165)	(108)	(1,372)
Proceeds from withdrawal of time deposits	78	35	--	291
Payments for purchase of	(1,196)	(2,542)	(1,346)	(21,137)
Proceeds from sales of	162	9	(153)	75
Payments for purchase of	(282)	(176)	106	(1,463)
investment securities				0
Proceeds from sales of	412	196	(216)	1,630
Purchase of intangible assets	(51)	(9)	42	(75)
Other	17	6	(11)	50
Net cash used in investing activities	(917)	(2,646)	(1,729)	(22,001)
Cash flows from financing activities:
Payments of long-term debt	(5)	(5)	0	(42)
Cash dividends paid	(300)	(312)	(12)	(2,594)
An income by the publication of the subscription warrant	9	--	0	0
Payments for purchase of treasury stock	0	0	0	0
Proceeds from sales of treasury stock	48	10		83
Net cash used in financing activities	(248)	(307)	(59)	(2,553)
Effect of exchange rate	44	(79)	(123)	(657)
changes on cash & cash equivalents
Net increase (decrease) in	1,801	(483)	(2,284)	(4,016)
cash & cash equivalents
Cash and cash equivalents	7,062	8,863	1,801	73,696
at beginning of year				0
Cash and cash equivalents at end of year	8,863	8,380	(483)	69,680

 

END

 

 

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