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 second quarter of Fiscal 2014<1 April 2014 - 30 Sep 2014> as follows;
I. Summary of Consolidated Financial Results
(1) Summary of consolidated operating results
JPY million
1st Quarter
1st Quarter
Change %
1 April - 30 Sep
1 April - 30 Sep
2013
2014
Net sales
15,347
15,821
3.1%
Operating income
1,314
1,271
-3.3%
Income before income taxes
1,406
1,314
-6.5%
Net income
1,081
756
-30.1%
Net income per share:
JPY
Basic
87.66
61.20
-30.2%
Diluted
87.60
61.20
-30.1%
(2) Summary of consolidated financial condition
As of 31 March
As of 30 Sep
Change %
2013
2014
Total assets
49,569
50,024
0.9%
Total net assets
40,016
41,158
2.9%
Equity ratio
80.7%
82.3%
1.6%
JPY
Total net assets per share
3,239.88
3,332.35
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 anduncertainties. Due to a number of factors, actual results may differ significantly from these estimates.
. Outlook for the fiscal 2014<1 April 2014 - 30 Sep 2014>
The forecast figures for business results and dividends announced in 30July 2014 are not changed.
Review of Operations
1. Review of Operations
In this consolidated cumulative second 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 turmoil has also regained stability and generally recovered. 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 15,821 million yen (increase 3.1% year on year). Our operating income was 1,271 million yen (decrease 3.3% year on year). Ordinary profit was 1,508 million yen (increase 8.1% year on year). Net income was 756 million yen (decrease 30.1% year on year).
2.Operating Results by Business Division
The Ceramic Components Division
The total sales for this business segment was 11,125 million yen (increase 7.6% 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.
Operating income was 1,997 million yen (increase 2.1% year on year).
Lighting Equipment Division
The total sales for this business segment was 4,696 million yen (decrease 6.1% year on year).
The profit, we push forward constitution reinforcement of YAMAGIWA and result comes out smoothly. The recording of sales will be delayed because construction plans were delayed while orders were increased. An operating loss was 236 million yen (decrease 20.5% year on year).
Regarding profits, we are further strengthening the structure of YAMAGIWA and it steadily produces results. We will continue to develop and expand sales of ceramic LED modules and lighting equipment.
Review of Operations
Review of operating results by segment
JPY million
2nd Quarter
2nd Quarter
1 April - 30 Sep
1 April - 30 Sep
2013
2014
Ceramic Components:
Net sales
10,344
11,125
Operating income
1,955
1,997
Lighting Equipment:
Net sales
5,003
4,696
Operating income
(196)
(236)
Total:
Net sales
15,347
15,821
Operating income
1,759
1,761
Elimination:
Net sales
--
--
Operating income
(445)
(490)
Consolidated:
Net sales
15,347
15,821
Operating income
1,314
1,271
3. Financial Condition
Total assets as of the end of this second quarter were 50,024million yen, increase0.9 from the end of last fiscal year. Total liabilities were8,866 million yen, decrease 7.2% from the end of last fiscal year. Total net assets were 41,158million yen ,increase 2.9% from the end of last fiscal year.
The forecast figures for business results and dividends announced in 30July 2014 are not changed.
Consolidated Balance Sheet
JPY million
2nd Quarter
(Reference)
As of 30 Sep
As of 31 March
2014
2014
ASSETS
Current assets:
Cash & deposits
14,312
13,362
Trade notes and accounts receivable
7,913
8,870
Electronically recorded monetary claims-operating
340
374
Inventories:
6,970
6,025
Deferred tax assets
479
439
Other current assets
846
727
Allowance for doubtful accounts
(15)
(15)
Total current assets
30,845
29,782
Property, plant & equipment:
Land
3,518
3,512
Buildings & structures
4,805
4,981
Machinery & equipment
6,076
6,169
Other
555
543
Construction in progress
1,235
1,539
Total property, plant & equipment
16,189
16,744
Goodwill
571
716
Other
447
410
Total Intangible assets
1,018
1,126
Investment & other assets:
Total investments & other assets
1,972
1,917
Total assets
50,024
49,569
LIABILITIES
Current liabilities:
Trade notes & accounts payable
3,264
3,639
Current portion of long-term debt
470
445
Accrued income taxes
604
896
Accrued bonus
476
436
Accrued bonus to directors
5
10
Notes payable for property acquisitions
201
453
Other
2,213
1,726
Total current liabilities
7,233
7,605
Long-term liabilities:
Long-term debt
957
1,159
Diferrred tax liabilities
155
175
Provision for environmental measures
26
26
Other
495
589
Total long-term liabilities
1,633
1,949
Total liabilities
8,866
9,554
NET ASSETS
Shareholders' equity:
Common stock
8,647
8,647
Capital surplus
11,947
11,947
Retained earnings
19,918
19,372
Treasury stock, at cost
(47)
(47)
Total shareholders' equity
40,465
39,919
Valuation and translation adjustments:
Net unrealized gains(losses)on available-for-sale securities
95
48
Foreign currency translation adjustments
595
46
Total valuation and translation adjustments
690
94
A subscription warrantandMinority stockholders share
3
3
Total shareholders' equity
3
3
Total net assets
41,158
40,016
Total liabilities and net assets
50,024
49,569
Consolidated Statements of Income
JPY million
2nd Quarter
2nd Quarter
1 April - 30 Sep
1 April - 30 Sep
2013
2014
Net sales
15,347
15,821
Cost of sales
10,128
10,729
Gross profit
5,219
5,092
Selling, general & administrative
3,905
3,821
expenses
Operating income
1,314
1,271
Other income (expenses):
Interest & dividend income
26
23
Interest expenses
(4)
(7)
Rent income
57
51
Rent expenses on real estates for investments
(28)
(19)
Foreign exchange gain (loss), net
(5)
172
Gain on sales of noncurrent assets
0
1
Compensation income
65
-
Subsidy income
-
755
Loss on disposal or sales of property, plant and equipment
(22)
(5)
Loss on reduction of noncurrent assets
-
(738)
Provision for environmental measures
(26)
-
Gain on redemption of securities
7
21
Impairment loss
(12)
(192)
Other, net
34
(19)
Other income (expenses), net
92
43
Income before income taxes
1,406
1,314
Income taxes:
Current
585
560
Deferred
(260)
(2)
Total income taxes
325
558
Minority interests in income
0
0
Net income
1,081
756
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMBTTMBIJBMI
