Final Results

RNS Number : 1597C

Maruwa Co Ld

26 April 2012

 



								27 April 2012
MARUWA CO., LTD.
3-83, Minamihonjigahara-cho, Owariasahi-city, Aichi-pref., 488-0044 JAPAN
Final Results for Fiscal Year 2011-2012
MARUWA CO., LTD. has announced its consolidated business results for the full fiscal year ended 31st March, 2012 as follows;
*The financial statements are prepared in accordance with the accounting principles generally accepted in Japan.
*US dollar amounts are converted by USD1 = JPY82.19  for your convenience only
*Number of consolidated subsidiaries: 13 companies  (Maruwa (Malaysia) Sdn. Bhd., Maruwa Melaka Sdn. Bhd., Maruwa Lightings 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 (India) Pvt.Ltd., MARUWA QUARTZ Co., Ltd., MARUWA SHOMEI Co., Ltd., and Hokko Denshi Co., Ltd.)
I. Summary of Consolidated Results
(1) Summary of consolidated statement of income
				million JPY				thousand USD
		For year ended		For year ended		Change %		For year ended
		31st March		31st March				31st March
		2011		2012				2012
Net sales		20,011		21,313		6.5%		259,314
Operating income		3,035		2,933		-3.4%		35,685
Income before income taxes		2,898		2,916		0.6%		35,479
Net income		2,012		2,105		4.6%		25,611
				JPY				USD
Net income per share (Basic)		102.97		187.14		81.7%		2.28
(Diluted)		--		--		--		--
*Average number of issued shares		10,749,267		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
		2011		2012				2012
Total Assets		33,649		40,808		21.3%		493,820
Total net assets		28,105		34,407		22.4%		418,626
Equity ratio		83.5%		84.3%		0.8%
				JPY				USD
Total net assets per share		2,470.94		2,611.82		5.7%		31.78
*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
		2011		2012				2012
Net cash provided by operating activities		2,549		1,908		-25.1%		23,215
Net cash used in investing activities		(2,646)		(4,435)		-67.6%		(53,960)
Net cash used in financing activities		(307)		4,255		1486.0%		51,770
Cash and cash equivalents  at end of term		8,380		10,074		20.2%		122,570
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
								million JPY
	FY 2011				FY 2012
	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Net sales	4,587	4,989	4,894	5,541	5,355	5,621	5,127	5,210
Operating income	634	841	756	804	993	809	671	460
Net income	375	538	496	603	687	576	461	381
				million JPY
	Previous		Current
	For year ended		For year ended		variance
	31st March 2011		31st March 2012		amount		%
Net sales	20,011		21,313		1,302		6.5%
Operating income	3,035		2,933		(102)		-3.4%
Net income	2,012		2,105		93		4.6%

(1)  Review of Operations

In this fiscal year, the steady economic growth in China has begun to slow, and the damage caused by the flooding in Thailand has been a trigger in a decelerating trend in the Asian economy.   After the second semester, the American economy has shown signs of an economic upturn due to a general increase in consumption, although economic risks due to the Middle East conflicts and Euro zone debt problem remain.

The Japanese economy has attempted to recover from the slump caused by the devastating Tohoku Earthquake, problems with nuclear power supply and flood damage in Thailand. However, the downward world economy and the strong yen have made recovery difficult.

In this sever economic situation, the MARUWA Group's business result during the first half of this fiscal year was extremely good due to an increase in the market for semiconductor machinery and an increase in the demand for digital equipment in the Asian market. But, in the second half of the semester, a drastic decline in the world economy influenced our business results, especially with respect to commodity products.  Conversely, the MARUWA group saw an increase in the market for environment-related products, including ceramics for power modules, LED lighting and components for smart phones.

As a result, our consolidated sales were 21,313 million yen. (This is up 6.5% compared to the same period last year)  Our operating income was 2,932 million yen. (This is down 3.4% compared to the same period last year)   Ordinary profit was 3,532 million yen (down 14.4%). Net income was 2,306 million yen (down 14.6%).

(2) Review of operating results by business segment
				million JPY
			Current
	For year ended		For year ended
	31st March 2011		31st March 2012
Ceramic Components:
Net sales		18,061		19,024
Operating income		3,498		3,412
Lighting Equipment:
Net sales		1,950		2,289
Operating income		136		247
Total:
Net sales		20,011	21,313
Operating income		3,634	3,659
Elimination:
Net sales		--	--
Operating income		(599)	(726)
Consolidated:
Net sales		20,011	21,313
Operating income		3,035		2,933

(2)  Operating Results by Business Division

1. The Ceramic Components Division

The total sales for this business segment was 19,024 million yen. (This is up 5.3% compared to the same period last year).

In the first half of this fiscal year, demand was very strong. Although this demand slowed down suddenly in the second half. The market for environment-related products, the power modules market and the smart phone market have remained strong.

Operating income was 3,411 million yen.

2. Lighting Equipment Division

The turnover was 2,289 million yen. This is a 17.3% increase over the same period last year.

Operating profit was 246 million yen, an 80.5% increase. This improvement is due to a consistent increase in inquiries and orders for LED lighting devices in the public utilities markets. New types of product were very successful. MARUWA is continuing to press forward with the development and promotion of new LED lighting products.

(

　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
				million JPY
		For year ended		For year ending	variance
		31st March 2012		31st March 2013	%
Net sales	21,313		24,000			12.6%
Operating income	2,933		3,360			14.6%
Net income	2,105		2,200			4.5%
Sales by segment				million JPY
		For year ended		For year ending	variance
		31st March 2012		31st March 2013	%
Ceramic Components		19,024		20,800		9.3%
Lighting Equipment		2,289		3,200		39.8%
Total		21,313		24,000		12.6%
*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. Outlook for the next fiscal year

The outlook for the future economy is still uncertain because of the prolonged and on-going economic problems in Europe and the world-wide rate of consumption remaining stagnant. On the other hand, the reconstruction demands created by the Tohoku Earthquake, public investment, equipment investment, home investment and continuing upward momentum in America and economic growth in China and other emerging countries will contribute basic support for the world economy. 

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 smartphones and other information terminal markets are expected to expand rapidly.

For capital investment, we will continue to 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 24,000 million yen, up 12.6% compared to last year. In terms of operating income, net income is expected to be 3,360 million yen, up 14.6% compared to last year, 2,200 million yen (Up4.6% 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.

Financial Condition
					million JPY		million JPY
		As of 31st March		As of 31st March			Change
		2011		2012			Amount	%
Total assets			33,649		40,808		7,159	21.3%
Total liabilities			5,544		6,401		857	15.5%
Total net assets			28,105		34,407		6,302	22.4%
Equity ratio			83.5%		84.3%		0.8%
					million JPY		million JPY
		For year ended		For year ended			Change
		31st March 2011		31st March 2012			Amount	%
Net cash provided by  operating activities			2,549		1,908		-641	-25.1%
Net cash used in  investing activities			(2,646)		(4,435)		-1,789	-67.6%
Net cash used in  financing activities			(307)		4,255		4,562	1486.0%
Cash and cash equivalents  at end of year			8,380		10,074		1,694	20.2%
Net sales			20,011		21,313		1,302	6.5%
Capital expenditure			1,585		5,717		4,132	260.7%
Depreciation			1,584		1,813		229	14.5%
Trends of cash-flows indices
							million JPY
		For year ended		For year ended		For year ended
		31st March 2010		31st March 2011		31st March 2012
Equity ratio			86.5%		83.5%		84.3%
Equity ratio at market value			69.5%		86.1%		110.8%
Interest-bearing  debt to cash flows ratio (year)			0.0		0.0		0.0
Interest coverage ratio			1,419.8		1,217.8		1,141.9

Consolidated Balance Sheets
	million JPY	million JPY		thousand USD
	As of 31st March	As of 31st March	variance	As of 31st March
	2011	2012		2012
ASSETS
Current assets:
Cash & deposits	8,923	10,649	1,726	129,566
Trade notes and accounts  receivable	6,540	6,373	(167)	77,540
Inventories	3,671	5,591	1,920	68,025
Deferred tax assets	221	219	(2)	2,665
Other current assets	311	716	405	8,712
Allowance for doubtful	(12)	(2)	10	(24)
accounts
Total current assets	19,654	23,546	3,892	286,484
Property, plant & equipment:
Land	3,155	3,789	634	46,100
Buildings & structures	3,782	3,965	183	48,242
Machinery & equipment	3,494	4,567	1,073	55,566
Other	384	533	149	6,485
Construction in progress	1,525	2,747	1,222	33,423
Net property, plant &	12,340	15,601	3,261	189,816
equipment	221	221
Investments & other assets:
Investment securities	337	318	(19)	3,869
Deferred tax assets	16	85	69	1,034
Property & equipment for investments	919	906	(13)	11,023
Other	175	136	(39)	1,655
Allowance for doubtful accounts	(13)	(5)	8	(61)
Total investments & other assets	1,434	1,440	6	17,520
Total assets	33,649	40,808	7,159	493,820

LIABILITIES
Current liabilities:
Trade notes & accounts payable	2,105	2,230	125	27,132
Current portion of long-term debt	5	5	0	61
Accrued income taxes	598	739	141	8,991
Accrued bonus	345	322	(23)	3,918
Accrued bonus for directors	22	14	--	170
Notes payable for property acquisitions	669	1,457	788	17,727
Other current liabilities	1,229	1,270	41	15,452
Total current liabilities	4,973	6,037	1,064	73,451
Long-term liabilities:
Long-term debt	116	111	(5)	1,351
Deferred tax liabilities	201	17	(184)	207
Negative goodwill	-	-	-	0
Other	254	236	(18)	2,871
Total long-term liabilities	571	364	(207)	4,429
Total liabilities	5,544	6,401	857	77,880
NET ASSETS
Shareholders' equity:
Common stock	6,710	8,647	--	105,207
Capital surplus	9,747	11,906	--	144,859
Retained earnings	13,750	15,510	1,760	188,709
Treasury stock, at cost	(679)	(141)	538	(1,716)
Total shareholders' equity	29,528	35,922	6,394	437,059
Valuation and translation adjustments:
Net unrealized gains (losses)	(50)	13	63	158
on available-for-sale securities				0
Foreign currency  translation adjustment	(1,402)	(1,562)	(160)	(19,005)
Total valuation and translation  adjustments	(1,452)	(1,549)	(97)	(18,847)
A subscription warrant　and　Minority stockholders share	29	34	-	414
Total shareholders' equity	29	34	5	414
Total net assets	28,105	34,407	6,302	418,626
Total liabilities & net assets	33,649	40,808	7,159	496,506

Consolidated Statements of Income
	million JPY	million JPY		thousand USD
	For year ended	For year ended	variance	For year ended
	31st March	31st March		31st March
	2011	2012		2012
Net sales	20,011	21,313	1,302	259,314
Cost of sales	13,318	14,567	1,249	177,236
Gross profit	6,693	6,746	53	82,078
Selling, general & administrative expenses	3,658	3,813	155	46,393
Operating income	3,035	2,933	(102)	35,685
Other income (expenses):
Interest and dividend income	48	40	(8)	487
Interest expenses	(2)	(2)	0	(24)
Amortization of negative goodwill	--	--		0
Foreign exchange gain (loss), net	(89)	144	233	1,752
Gain on sales of property, plant and equipment	55	48		584
Loss on disposal or sales of property, plant and equipment	(20)	(63)		(767)
Gain on sales or valuation  of investment securities	0	0		0
Loss on valuation of inventories	(150)	(278)		(3,382)
Early extra retirement payments	--	--		0
Loss by the disaster	(26)	--		0
Other, net	47	94	47	1,144
Other income (expenses), net	(137)	(17)	120	(206)
Income before income taxes	2,898	2,916	18	35,479
Income tax expenses:
Current	750	1,071	321	13,031
Deferred	136	(260)	(396)	(3,163)
Total income taxes	886	811	(75)	9,868
Net income	2,012	2,105	93	25,611

Consolidated Statement of Cash Flows
	million JPY	million JPY		thousand USD
	For year ended	For year ended	variance	For year ended
	31st March	31st March		31st March
	2011	2012		2012
Cash flows from operating activities:
Income before income taxes	2,898	2,916	18	35,479
Adjustments for:
Depreciation	1,584	1,813	229	22,059
Amortization of negative goodwill	--	--	0	0
Impairment loss	--	--		0
Decrease in allowance for doubtful accounts	(13)	(18)	(5)	(219)
Loss on disposal of property, plant & equipment	20	76	56	925
Interest & dividend income	(48)	(47)	1	(572)
Foreign exchange (gain) loss	8	0	(8)	0
Gain on sales of investment securities	0	0	0	0
Loss on valuation of inventories	150	86	(64)	1,046
Decrease (increase) in trade notes & accounts receivable	(1,272)	125	1,397	1,521
Increase in inventories	(979)	(1,917)	(938)	(23,324)
Decrease in trade notes & accounts payable	409	187	(222)	2,275
Other	211	(404)	(615)	(4,915)
Sub-total	2,968	2,817	(151)	34,275
Interest & dividend income received	48	49	1	596
Interest expenses paid	(2)	(2)	0	(24)
Income taxes paid	(465)	(956)	(491)	(11,632)
The amount of corporation tax return	--	--	-	0
Net cash provided by operating activities	2,549	1,908	(641)	23,215
Cash flows from investment activities:
Payments into time deposits	(165)	(66)	99	(803)
Proceeds from withdrawal of time deposits	35	0	--	0
Payments for purchase of	(2,542)	(5,075)	(2,533)	(61,747)
Proceeds from sales of	9	693	684	8,432
Payments for purchase of	(176)	(115)	61	(1,399)
investment securities				0
Proceeds from sales of	196	109	(87)	1,326
Purchase of intangible assets	(9)	(18)	(9)	(219)
Other	6	37	31	450
Net cash used in investing activities	(2,646)	(4,435)	(1,789)	(53,960)
Cash flows from financing activities:
Payments of long-term debt	(5)	(5)	0	(61)
Cash dividends paid	(312)	(346)	(34)	(4,210)
An income by the publication of the subscription warrant	0	0	0	0
Payments for purchase of treasury stock	0	0	0	0
Proceeds from sales of treasury stock	10	4,606		0
Net cash used in financing activities	(307)	4,255	4,562	(4,271)
Effect of exchange rate	(79)	(34)	45	(414)
changes on cash & cash equivalents
Net increase (decrease) in	(483)	1,694	2,177	(35,430)
cash & cash equivalents
Cash and cash equivalents	8,863	8,380	(483)	101,959
at beginning of year				0
Cash and cash equivalents at end of year	8,380	10,074	1,694	66,529

Consolidated Statements of Changes in Net Assets
					million JPY
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2011	6,710	9,747	13,750	(679)	29,528
Increase in legal capital	1,937	1,937			3,874
Cash dividends			(346)		(346)
Net income			2,105		2,105
Change of scope of consolidation					0
Purchase of treasury stock				0	0
Disposal of treasury stock		223		538	761
Other changes					0
Total changes during the year	1,937	2,160	1,759	538	6,394
Balance at 31 March 2012	8,647	11,906	15,510	(141)	35,922

				million JPY
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
(50)	(1,402)	(1,452)	29	28,105
				3,874
				(346)
				2,105
				0
				0
				761
62	(160)	(98)	6	(92)
62	(160)	(98)	6	6,302
13	(1,562)	(1,549)	34	34,407

					thousand USD
	Shareholders' equity
	Common stock	Capital surplus	Retained earnings	Treasury stock	Total shareholders' equity
Balance at 31 March 2011	62,430	90,686	127,930	(6,317)	274,729
Increase in legal capital	23,567	23,567	0	0	47,135
Cash dividends	0	0	(4,210)	0	(4,210)
Net income	0	0	25,611	0	25,611
Change of scope of consolidation	0	0	0	0	0
Purchase of treasury stock	0	0	0	0	0
Disposal of treasury stock	0	2,713	0	6,546	9,259
Other changes	0	0	0	0	0
Total changes during the year
Balance at 31 March 2012	105,207	144,859	188,709	(1,716)	437,059

				thousand USD
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
(465)	(13,044)	(13,509)	29	261,489
0	0	0	0	47,135
0	0	0	0	(4,210)
0	0	0	0	25,611
0	0	0	0	0
0	0	0	0	0
0	0	0	0	9,259
754	(1,947)	(1,192)	73	(1,119)
				58,634
158	(19,005)	(18,847)	414	418,626

 

END

 

 

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