Edgar Filing: MAKITA CORP

MAKITA CORPORATION FORM 6-K

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

For the month of July, 2003

MAKITA CORPORATION
(Translation of registrant’s name into English)

3-11-8, Sumiyoshi-cho, Anjo City, Aichi Prefecture, Japan
(Address of principal executive offices)

[ Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: ]


Form 20-F [X]		Form 40-F [ ]

[ Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. ]


Yes [ ]		No [X]

TABLE OF CONTENTS


SIGNATURES
Financial Results (Consolidated) for the three months ended June 30, 2003
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED STATEMENTS OF INCOME
SUPPORT DOCUMENTATION (CONSOLIDATED)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




		MAKITA CORPORATION

		(Registrant)




Date: July 31, 2003		By: /s/ Masahiko Goto

		(Signature)



		Masahiko Goto President

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)

July 31, 2003

MAKITA CORPORATION

URL: http://www.makita.co.jp/
Masahiko Goto, President

Financial Results (Consolidated)
for the three months ended June 30, 2003

1.		Notes to consolidated financial statements for the three months ended June 30, 2003

(1)		Accounting policy changes from the fiscal year ended March 31, 2003: No.

(2)		Change in scope of consolidation and equity method: No.

2.		Results of the first quarter ended June 30, 2003 (From April 1, 2003 to June 30, 2003)

(1)		FINANCIAL RESULTS


	Net sales				Operating income				Income before income taxes				Net income

	Million yen		%		Million yen		%		Million yen		%		Million yen		%

Three months ended June 30, 2003		42,918		4.4		3,023		7.4		3,308		104.3		1,415		128.2
Three months ended June 30, 2002		41,120		—		2,816		—		1,619		—		620		—

(Ref.) Year ended March 31, 2003		175,603		5.7		12,468		112.3		9,292		173.1		6,723		—


	Basic net		Diluted net
	income		income
	per share		per share

	Yen		Yen

Three months ended June 30, 2003		9.69		9.51
Three months ended June 30, 2002		4.14		4.14

(Ref.) Year ended March 31, 2003		45.29		44.20


Note:		Percent indicates the change against corresponding period of the previous year on Net sales, Operating income, Income before income taxes and Net income.

[Qualitative information about financial results]

During the three months under review, the Company proceeded with manufacturing cost-cutting measures, including the expansion of production by a subsidiary in China.

Net sales were weak in North America but strong in Europe and Southeast Asia, boosting consolidated net sales to 42,918 million yen, up 4.4% from the same period of the previous fiscal year.

Profitability was improved by such factors as a shift from exchange losses on foreign currency transactions to exchange gains on such transactions, causing income before income taxes to surge to 3,308 million yen, approximately twice the level in the same period of the previous fiscal year. Net income amounted to 1,415 million yen, approximately 2.3 times the level in the same period of the previous fiscal year.

(2)

FINANCIAL POSITION

Shareholders'

equity ratio to

equity

Total assets

equity

Total assets

per share

Million yen

Yen

As of June 30, 2003

280,040

186,342

66.5

1,276.71

(Ref.) As of March 31, 2003

278,600

182,400

65.5

1,249.59


Note:		The Company did not compile data for total assets, shareholders’ equity, shareholders’ equity ratio to total assets, and shareholders’ equity per share in the first quarter of the previous fiscal year.

[CASH FLOWS]


	Net cash provided		Net cash used in			Net cash used in			Cash and cash
	by operating		investing			financing			equivalents,
	activities		activities			activities			end of period

	Million yen		Million yen			Million yen			Million yen

Three months ended June 30, 2003		3,334		(211	)		(755	)		22,254

(Ref.) Year ended March 31, 2003		27,141		(9,659	)		(13,381	)		20,370


Note:		The Company did not compile data for cash flows in the first quarter of the previous fiscal year.

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)

Forecast for the fiscal year ending March 31, 2004 (From April 1, 2003 to March 31, 2004)


			Income before				Net income
	Net sales		income taxes		Net income		per share

	Million yen		Million yen		Million yen		Yen

For the six months ending September 30, 2003		87,000		8,200		4,000		27.41
For the year ending March 31, 2004		176,500		14,200		7,000		47.96

[Qualitative information about forecast for the fiscal year ending March 31, 2004]

The above consolidated performance has been adjusted for the fiscal year ending March 31, 2004; following the announcement of a previous forecast on April 25, 2003.

Assumption applied for adjusted forecast:

Exchange rates of 118 yen to US$1 and 131 yen to 1 Euro for the fiscal year ending March 31, 2004.

At present, the forecast of nonconsolidated performance for the fiscal year ending March 31, 2004 that was announced on April 25, 2003, has not been adjusted.


Notes:	(1)	Amount less than 1 million yen has been rounded up or down to the nearest million yen.
	(2)	These forecast, based on the Company’s current assumptions and beliefs in light of the information currently available, involve known and unknown risks and uncertainties.

FORWARD-LOOKING STATEMENTS

This document contains forward-looking statements based on Makita’s own projections and estimates. The power tools market, where Makita is mainly active, is subject to the effects of rapid shifts in economic conditions, demand for housing, currency exchange rates, changes in competitiveness, and other factors. Due to the risks and uncertainties involved, actual results could differ substantially from the content of these statements. Therefore, these statements should not be interpreted as representation that such objectives will be achieved.

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)

CONSOLIDATED BALANCE SHEETS


				Yen (millions)

				As of			As of
				June 30, 2003			March 31, 2003			Change

ASSETS
Current assets:
		Cash and cash equivalents			22,254			20,370			1,884
		Time deposits			5,285			4,520			765
		Marketable securities			37,142			39,193			(2,051	)
		Trade receivables-
			Notes		2,535			2,122			413
			Accounts		32,750			34,630			(1,880	)
			Less- Allowance for doubtful receivables		(1,485	)		(1,456	)		(29	)
		Inventories			64,039			62,606			1,433
		Deferred income taxes			2,839			3,515			(676	)
		Prepaid expenses and other current assets			8,011			8,065			(54	)

			Total current assets		173,370			173,565			(195	)

Property, plant and equipment, at cost:
		Land			21,609			21,497			112
		Buildings and improvements			69,538			66,738			2,800
		Machinery and equipment			79,108			78,221			887
		Construction in progress			168			2,165			(1,997	)

					170,423			168,621			1,802
		Less- Accumulated depreciation			(102,923	)		(100,823	)		(2,100	)

					67,500			67,798			(298	)

Investments and other assets:
		Investment securities			21,827			19,342			2,485
		Deferred income taxes			9,816			10,386			(570	)
		Other assets			7,527			7,509			18

					39,170			37,237			1,933

					280,040			278,600			1,440

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
		Short-term borrowings			3,201			2,892			309
		Trade notes and accounts payable			14,662			13,956			706
		Accrued payroll			5,497			7,162			(1,665	)
		Accrued expenses and other			3,536			3,535			1
		Income taxes payable			2,777			3,858			(1,081	)
		Deferred income taxes			309			403			(94	)

			Total current liabilities		29,982			31,806			(1,824	)

Long-term liabilities:
		Long-term indebtedness			20,320			19,843			477
		Club members’ deposits			13,709			14,207			(498	)
		Estimated retirement and termination allowances			27,674			27,778			(104	)
		Deferred income taxes			768			1,407			(639	)

					62,471			63,235			(764	)

MINORITY INTERESTS					1,245			1,159			86

SHAREHOLDERS’ EQUITY:
	Common stock				23,803			23,803			-
	Additional paid-in capital				45,419			45,419			-
	Legal reserve and retained earnings				143,523			143,422			101
	Accumulated other comprehensive loss				(21,281	)		(25,134	)		3,853
	Treasury stock, at cost				(5,122	)		(5,110	)		(12	)

					186,342			182,400			3,942

					280,040			278,600			1,440

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)

CONSOLIDATED STATEMENTS OF INCOME


			Yen (millions)

			For the three months ended June 30,

			2003						2002						Increase/Decrease

			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)

Net sales				42,918			100.0			41,120			100.0			1,798			4.4
	Cost of sales			26,783			62.4			25,987			63.2			796			3.1

Gross profit				16,135			37.6			15,133			36.8			1,002			6.6
	Selling, general and administrative expenses			13,112			30.6			12,317			30.0			795			6.5

Operating income				3,023			7.0			2,816			6.8			207			7.4

Other income (expenses):
	Interest and dividend income			175			0.4			383			0.9			(208	)		(54.3	)
	Interest expense			(150	)		(0.3	)		(215	)		(0.5	)		65			30.2
	Exchange gains (losses) on foreign currency transactions, net			144			0.3			(1,429	)		(3.5	)		1,573			—
	Other, net			116			0.3			64			0.2			52			81.3

		Total		285			0.7			(1,197	)		(2.9	)		1,482			—

Income before income taxes				3,308			7.7			1,619			3.9			1,689			104.3

Provision for income taxes				1,893			4.4			999			2.4			894			89.5

Net income				1,415			3.3			620			1.5			795			128.2

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)

SUPPORT DOCUMENTATION (CONSOLIDATED)


1. Results and forecast		(Left: amount, millions of yen Right: change)



		For the three			For the three				For the				For the six				For the
		months ended			months ended				year ended				months ending				year ending
		June 30, 2002			June 30, 2003				March 31, 2003				September 30, 2003				March 31, 2004
		(Results)			(Results)				(Results)				(Forecast)				(Forecast)

Net sales			41,120	—		42,918	4.4	%		175,603	5.7	%		87,000	-0.7	%		176,500	0.5	%
	Domestic		9,084	—		9,061	-0.3	%		38,781	-1.8	%		19,000	-1.4	%		38,200	-1.5	%
	Overseas		32,036	—		33,857	5.7	%		136,822	8.0	%		68,000	-0.6	%		138,300	1.1	%
Operating income			2,816	—		3,023	7.4	%		12,468	112.3	%		7,800	24.4	%		13,600	9.1	%
Income before income taxes			1,619	—		3,308	104.3	%		9,292	173.1	%		8,200	85.4	%		14,200	52.8	%
Net income			620	—		1,415	128.2	%		6,723	4,954.9	%		4,000	27.5	%		7,000	4.1	%
		Yen			Yen				Yen				Yen				Yen
Net income per share			4.14			9.69				45.29				27.41				47.96
Employees			8,148			8,310				8,344				—				—


2. Net sales by geographic area		(Left: amount, millions of yen Right: change)


	For the three months ended June 30, 2002 (Results)			For the three months ended June 30, 2003 (Results)

Japan		9,084	—		9,061	-0.3	%
North America		11,221	—		9,720	-13.4	%
Europe		12,699	—		15,345	20.8	%
Southeast Asia		3,327	—		3,657	9.9	%
Other regions		4,789	—		5,135	7.2	%

Total		41,120	—		42,918	4.4	%


3. Exchange rates		(Yen)


	For the three months ended June 30, 2002 (Results)		For the three months ended June 30, 2003 (Results)		For the year ended March 31, 2003 (Results)		For the year ending March 31, 2004 (Forecast)

U.S. Dollar		127.10		118.49		121.98		118
Euro		116.55		134.66		120.88		131

4. Sales growth in local currency basis (major countries)


U.S.A.	-8.9%	Germany	3.9%
U.K.	9.6%	France	2.2%
China	14.8%	Australia	18.2%

5. Production ratio (unit basis)


	For the three months ended June 30, 2003 (Results)			For the year ended March 31, 2003 (Results)

Domestic		36.7	%		36.9	%
Overseas		63.3	%		63.1	%

(English Translation of “GYOSEKI NO GAIKYO” originally issued in Japanese language)


6. Capital expenditures, depreciation and amortization, and R&D cost		(Millions of yen)


	For the three months ended June 30, 2003 (Results)		For the year ended March 31, 2003 (Results)		For the year ending March 31, 2004 (Forecast)

Capital expenditures		1,633		5,691		6,000
Depreciation and amortization		2,173		9,740		9,500
R&D cost		949		3,856		3,900


7. Cash flows		(Millions of yen)


		For the three months ended June 30, 2003 (Results)		For the year ended March 31, 2003 (Results)

Cash flows from:
	Operating activities		3,334		27,141
	Investing activities		-211		-9,659
	Financing activities		-755		-13,381

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