Edgar Filing: MAKITA CORP

MAKITA CORPORATION

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, 2004

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
CONSOLIDATED FINANCIAL RESULTS
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
OPERATING SEGMENT INFORMATION
SUPPORT DOCUMENTATION (CONSOLIDATION)

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)

		By:		/s/ Masahiko Goto
				(Signature)
				Masahiko Goto
				President

Date: July 29, 2004

(MAKITA LOGO)

Makita Corporation

Consolidated Financial Results
for the three months
ended June 30, 2004
(U.S. GAAP Financial Information)

(English translation of “ZAIMU/GYOSEKI NO GAIKYO”
originally issued in the Japanese language)

(MAKITA LOGO)

CONSOLIDATED FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2004

July 29, 2004

Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Masahiko Goto, President

1.		Notes to consolidated financial statements for the three months ended June 30, 2004

(1)		Adoption of simplified accounting methods: None.

(2)		Accounting policy changes from the year ended March 31, 2004: None.

(3)		Change in scope of consolidation and equity method: None.

2.		Results of the three months ended June 30, 2004 (From April 1, 2004 to June 30, 2004)

(1)		CONSOLIDATED FINANCIAL RESULTS



	Yen (million)
	For the three months				For the three months				For the year ended
	ended June 30,				ended June 30,				March 31,
	2003				2004				2004
			%				%				%
Net sales		42,918		4.4		46,575		8.5		184,117		4.8
Operating income		3,023		7.4		10,451		245.7		14,696		17.9
Income before income taxes		3,308		104.3		10,933		230.5		16,170		74.0
Net income		1,415		128.2		6,847		383.9		7,691		14.4

	Yen
Net income per share:
Basic		9.69				47.59				53.16
Diluted		9.51				45.95				51.92

Note:

The table above shows the change in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year.

[Qualitative information on consolidated financial results]

Net sales rose to 46,575 million yen, and 8.5% increase from the same period of the previous year. This increase was mainly due to strong sales in Europe and Asia that countered the effects of the appreciation of the yen against other currencies.

Operating income amounted to 10,451 million yen, and increase of 3.5 times versus the same period of the previous year. This increase was principally owing to the improved cost efficiency following the shift of a portion of our manufacturing process to factories in China, and a gain of 4,441 million yen arising from the return of the substitutional portion of the Company’s National Welfare Pension fund to the government. Income before income taxes was 10,933 million yen, 3.3 times higher than for the same period of the previous year, and net income for the quarter amounted to 6,847 million yen, an increase of 4.8 times over the same period of the previous year.


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			1

(MAKITA LOGO)

(2)

CONSOLIDATED FINANCIAL POSITION



	Yen (million)
	As of			As of			As of
	June 30, 2003			June 30, 2004			March 31, 2004
Total assets		280,040			280,500			278,116
Shareholders’ equity		186,342			203,796			193,348
Shareholders’ equity ratio to total assets (%)		66.5	%		72.7	%		69.5	%


	Yen
Shareholders’ equity per share		1,276.71	1,416.46	1,343.69

[CONSOLIDATED CASH FLOWS]



	Yen (million)
	For the three months			For the three months			For the year
	ended June 30,			ended June 30,			ended March 31,
	2003			2004			2004
Net cash provided by operating activities		3,334			1,752			28,941
Net cash used in investing activities		(211	)		(101	)		(17,262	)
Net cash used in financing activities		(755	)		(1,916	)		(6,596	)
Cash and cash equivalents, end of period.		22,254			24,892			24,576

[Qualitative information on consolidated cash flows]

Total cash and cash equivalents (“cash”) at the end of period amounted to 24,892 million yen, up 316 million yen from the previous year.

(Net Cash Provided by Operating Activities)

Net cash provided by operating activities amounted to 1,752 million yen, down 1,582 million yen from the level for the same period of the previous year. Although net income increased for the period, this was more than offset by an increase in inventories and a decrease in income taxes payable.

(Net Cash Used in Investing Activities)

Net cash used in investing activities totaled 101 million yen, down 110 million yen from the same period of the previous year. Factors accounting for this decline included a reduction in capital investments and the sale of a warehouse of the Company’s plant in the United Kingdom.

(Net Cash Used in Financing Activities)

Net cash used in financing activities was 1,916 million yen, up 1,161 million yen from the same period of the previous year. This mainly reflected the payment of cash dividends.


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			2

(MAKITA LOGO)

(Ref.)

Revised outlook for consolidated performance during the interim period of fiscal 2005 (from April 1, 2004, to September 30, 2004)


							(Million yen, %)

				Income before
	Net sales			income taxes			Net income
Outlook announced previously (A)		92,400			13,500			7,500
Revised outlook (B)		94,500			15,500			9,600
Change (B-A)		2,100			2,000			2,100
Percentage revision		2.3	%		14.8	%		28.0	%
Actual results for the interim period of the previous fiscal year (ended September 30, 2003)		91,757			9,894			4,981

Revised outlook for non-consolidated performance during the interim period of fiscal 2005 (from April 1, 2004, to September 30, 2004)


							(Million yen, %)

	Net sales			Ordinary profit			Net income
Outlook announced previously (A)		42,700			4,300			6,600
Revised outlook (B)		48,500			6,600			8,000
Change (B-A)		5,800			2,300			1,400
Percentage revision		13.6	%		53.5	%		21.2	%
Actual results for the interim period of the previous fiscal year (ended September 30, 2003)		42,326			4,328			3,877

Revised outlook for consolidated performance during the fiscal 2005 (from April 1, 2004, to March 31, 2005)


							(Million yen, %)

				Income before
	Net sales			income taxes			Net income
Outlook announced previously (A)		185,000			23,000			12,800
Revised outlook (B)		188,000			26,000			16,000
Change (B-A)		3,000			3,000			3,200
Percentage revision		1.6	%		13.0	%		25.0	%
Actual results for the previous fiscal year (ended March 31, 2004)		184,117			16,170			7,691

Note: Net income per share for the fiscal year is projected to be 111.21 yen.

Revised outlook for non-consolidated performance during the fiscal 2005 (from April 1, 2004, to March 31, 2005)


							(Million yen, %)

	Net sales			Ordinary profit			Net income
Outlook announced previously (A)		86,500			8,300			9,000
Revised outlook (B)		88,500			9,800			9,700
Change (B-A)		2,000			1,500			700
Percentage revision		2.3	%		18.1	%		7.8	%
Actual results for the previous fiscal year (ended March 31, 2004)		88,335			9,444			5,668

Note: Net income per share for the fiscal year is projected to be 67.42 yen.


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			3

(MAKITA LOGO)

[Qualitative information about the forecast for the year ending March 31, 2005]

The above performance forecast has primarily been adjusted from the prior forecast on April 28, 2004 because of a changed exchange rate assumption, 106 yen to US$1 and 131 yen to 1 Euro for the year ending March 31, 2005 (outlook announced previously: 105 yen to US$1 and 125 yen to 1 Euro). The above figures include a gain arising from the transfer to the government of the substitutional portion of the employees’ pension fund managed by the Company that was reported in the first quarter. This transfer is as follows:


Consolidated:		An increase to operating income of 4,441 million yen (outlook announced previously: approximately 4,200 million yen)
Non-consolidated:		An increase to extraordinary income of 6,375 million yen (outlook announced previously: approximately 6,300 million yen)

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 “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			4

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS


	Yen (millions)
	As of			As of
	March 31,			June 30,			Increase
	2004			2004			(Decrease)

ASSETS
CURRENT ASSETS:
Cash and cash equivalents		24,576			24,892			316
Time deposits		4,050			4,938			888
Marketable securities		63,990			62,568			(1,422	)
Trade receivables-
Notes		2,254			2,571			317
Accounts		34,787			32,562			(2,225	)
Less- Allowance for doubtful receivables		(1,346	)		(1,416	)		(70	)
Inventories		54,326			58,127			3,801
Deferred income taxes		3,691			3,844			153
Prepaid expenses and other current assets		8,117			7,566			(551	)

Total current assets		194,445			195,652			1,207

PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		18,326			18,352			26
Buildings and improvements		50,648			50,953			305
Machinery and equipment		73,222			73,555			333

Less- Accumulated depreciation		(89,231	)		(90,091	)		(860	)

		52,965			52,769			(196	)

INVESTMENTS AND OTHER ASSETS:
Investment securities		22,139			22,128			(11	)
Deferred income taxes		880			261			(619	)
Other assets		7,687			9,690			2,003

		30,706			32,079			1,373

		278,116			280,500			2,384


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			5

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS


	Yen (millions)
	As of			As of
	March 31,			June 30,			Increase
	2004			2004			(Decrease)

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings		14,128			14,382			254
Trade notes and accounts payable		15,351			16,419			1,068
Accrued payroll		7,168			5,556			(1,612	)
Accrued expenses and other		3,830			4,010			180
Income taxes payable		6,093			3,156			(2,937	)
Deferred income taxes		53			55			2

Total current liabilities		46,623			43,578			(3,045	)

LONG-TERM LIABILITIES:
Long-term indebtedness		7,364			7,343			(21	)
Club members’ deposits		13,045			12,759			(286	)
Accrued retirement and termination benefits		15,905			5,505			(10,400	)
Deferred income taxes		235			5,846			5,611
Other liabilities		342			390			48

		36,891			31,843			(5,048	)

MINORITY INTERESTS		1,254			1,283			29

SHAREHOLDERS’ EQUITY:
Common stock		23,803			23,803			—
Additional paid-in capital		45,421			45,421			—
Legal reserve and retained earnings		144,488			149,464			4,976
Accumulated other comprehensive loss		(17,048	)		(11,552	)		5,496
Treasury stock, at cost		(3,316	)		(3,340	)		(24	)

		193,348			203,796			10,448

		278,116			280,500			2,384


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			6

(MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Yen (millions)
	For the three						For the three												For the
	months ended						months ended												year ended
	June 30,						June 30,						Increase						March 31,
	2003						2004						(Decrease)						2004

	(Amount)			(%)			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)
NET SALES		42,918			100.0			46,575			100.0			3,657			8.5			184,117			100.0
Cost of sales		26,783			62.4			27,672			59.4			889			3.3			110,322			59.9

GROSS PROFIT		16,135			37.6			18,903			40.6			2,768			17.2			73,795			40.1
Selling, general, administrative and other expenses		13,112			30.6			8,452			18.2			(4,660	)		(35.5	)		59,099			32.1

OPERATING INCOME		3,023			7.0			10,451			22.4			7,428			245.7			14,696			8.0

OTHER INCOME (EXPENSES) :
Interest and dividend income		175			0.4			329			0.7			154			88.0			869			0.5
Interest expense		(150	)		(0.3	)		(159	)		(0.3	)		(9	)		(6.0	)		(605	)		(0.3	)
Exchange gains (losses) on foreign currency transactions, net		144			0.3			(82	)		(0.2	)		(226	)		—			(202	)		(0.1	)
Realized gains on securities, net		22			0.1			208			0.4			186			845.5			555			0.3
Other, net		94			0.2			186			0.5			92			97.9			857			0.4

Total		285			0.7			482			1.1			197			69.1			1,474			0.8

INCOME BEFORE INCOME TAXES		3,308			7.7			10,933			23.5			7,625			230.5			16,170			8.8

PROVISION FOR INCOME TAXES		1,893			4.4			4,086			8.8			2,193			115.8			8,479			4.6

NET INCOME		1,415			3.3			6,847			14.7			5,432			383.9			7,691			4.2


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			7

(MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW



	Yen (millions)
	For the three			For the three			For the
	months ended			months ended			year ended
	June 30,			June 30,			March 31,
	2003			2004			2004
Net cash provided by operating activities		3,334			1,752			28,941
Net cash used in investing activities		(211	)		(101	)		(17,262	)
Net cash used in financing activities		(755	)		(1,916	)		(6,596	)
Effect of exchange rate changes on cash and cash equivalents		(484	)		581			(877	)

Net change in cash and cash equivalents		1,884			316			4,206
Cash and cash equivalents, beginning of period		20,370			24,576			20,370

Cash and cash equivalents, end of period		22,254			24,892			24,576


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			8

(MAKITA LOGO)

OPERATING SEGMENT INFORMATION

For the three months ended June 30, 2003


	Yen (millions)
														Corporate
			North											and elimi-			Consoli-
	Japan		America			Europe		Asia		Other		Total		nations			dated
Sales:
(1) External customers		11,405		9,750			15,420		1,700		4,643		42,918		—			42,918
(2) Intersegment		9,041		832			1,299		4,937		17		16,126		(16,126	)		—

Total		20,446		10,582			16,719		6,637		4,660		59,044		(16,126	)		42,918

Operating expenses		19,240		10,916			15,307		6,020		4,463		55,946		(16,051	)		39,895
Operating income		1,206		(334	)		1,412		617		197		3,098		(75	)		3,023

For the three months ended June 30, 2004


	Yen (millions)
													Corporate
			North										and elimi-			Consoli-
	Japan		America		Europe		Asia		Other		Total		nations			dated
Sales:
(1) External customers		12,441		8,904		17,833		1,974		5,423		46,575		—			46,575
(2) Intersegment		10,242		903		1,303		7,945		55		20,448		(20,448	)		—

Total		22,683		9,807		19,136		9,919		5,478		67,023		(20,448	)		46,575

Operating expenses		15,790		9,472		17,224		8,775		5,056		56,317		(20,193	)		36,124
Operating income		6,893		335		1,912		1,144		422		10,706		(255	)		10,451

For the year ended March 31, 2004


	Yen (millions)
													Corporate
			North										and elimi-			Consoli-
	Japan		America		Europe		Asia		Other		Total		nations			dated
Sales:
(1) External customers		48,413		41,699		67,110		6,612		20,283		184,117		—			184,117
(2) Intersegment		40,633		3,978		4,726		22,364		123		71,824		(71,824	)		—

Total		89,046		45,677		71,836		28,976		20,406		255,941		(71,824	)		184,117

Operating expenses		87,594		44,958		64,358		26,048		19,061		242,019		(72,598	)		169,421
Operating income		1,452		719		7,478		2,928		1,345		13,922		774			14,696

Note: Segment information is determined by the location of the Company and its relevant subsidiaries.


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			9

(MAKITA LOGO)

SUPPORT DOCUMENTATION (CONSOLIDATION)

Consolidated results and forecast


	Yen (millions)
	For the three months						For the three months
	ended June 30,						ended June 30,
	2003						2004
	(Results)						(Results)
	(Amount)			(%)			(Amount)			(%)
Net sales		42,918			4.4			46,575			8.5
Domestic		9,061			(0.3	)		8,896			(1.8	)
Overseas		33,857			5.7			37,679			11.3
Operating income		3,023			7.4			10,451			245.7
Income before income taxes		3,308			104.3			10,933			230.5
Net income		1,415			128.2			6,847			383.9
Net income per share (Yen)			9.69						47.59
Employees			8,310						8,499



	Yen (millions)
	For the year					For the six months					For the year
	ended March 31,					ending September 30,					ending March 31,
	2004					2004					2005
	(Results)					(Forecast)					(Forecast)
	(Amount)			(%)		(Amount)			(%)		(Amount)			(%)
Net sales		184,117			4.8		94,500			3.0		188,000			2.1
Domestic		39,142			0.9		19,300			0.3		38,700			(1.1	)
Overseas		144,975			6.0		75,200			3.7		149,300			3.0
Operating income		14,696			17.9		15,500			67.6		26,000			76.9
Income before income taxes		16,170			74.0		15,500			56.7		26,000			60.8
Net income		7,691			14.4		9,600			92.7		16,000			108.0
Net income per share (Yen)			53.16					66.72					111.21
Employees			8,433					—					—

Note:

The table above shows the change in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year.


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			10

(MAKITA LOGO)

Consolidated net sales by geographic area


	Yen (millions)
	For the three					For the three					For the
	months ended					months ended					year ended
	June 30,					June 30,					March 31,
	2003					2004					2004
	(Results)					(Results)					(Results)
	(Amount)		(%)			(Amount)		(%)			(Amount)		(%)
Japan		9,061		(0.3	)		8,896		(1.8	)		39,142		0.9
North America		9,720		(13.4	)		8,937		(8.1	)		41,853		(8.2	)
Europe		15,345		20.8			17,676		15.2			66,369		15.1
Asia		3,657		9.9			4,883		33.5			14,245		3.4
Other regions		5,135		7.2			6,183		20.4			22,508		13.5
Total		42,918		4.4			46,575		8.5			184,117		4.8

Note: The table above sets forth Makita’s consolidated net sales by geographic area based on customers location for the periods presented.

Exchange rates

Yen

For the three

For the

months ended

year ended

June 30,

March 31,

2003

2004

2005

(Results)

(Forecast)

Yen/U.S. Dollar

118.49

109.63

113.19

106

Yen/Euro

134.66

132.15

132.65

131

Sales growth in local currency basis (major countries)


	For the three
	months ended
	June 30,
	2004
	(Results)
U.S.A.		(1.6	%)
Germany		9.3	%
U.K		15.0	%
France		15.7	%
China		11.5	%
Australia		(5.3	%)

Production ratio (unit basis)


	For the three			For the three			For the
	months ended			months ended			year ended
	June 30,			June 30,			March 31,
	2003			2004			2004
	(Results)			(Results)			(Results)
Domestic		36.7	%		31.5	%		32.3	%
Overseas		63.3	%		68.5	%		67.7	%


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			11

(MAKITA LOGO)

Consolidated capital expenditures, depreciation and amortization, and R&D cost

Yen (millions)

For the three

For the year

months ended

ended

ending

June 30,

March 31,

2003

2004

2005

(Results)

(Forecast)

Capital expenditures

1,633

1,035

4,494

6,000

Depreciation and amortization

2,173

1,321

7,963

6,400

R&D cost

949

1,031

4,086

4,200

Consolidated cash flow


	Yen (millions)
	For the three			For the three			For the year
	months ended			months ended			ended
	June 30,			June 30,			March 31,
	2003			2004			2004
	(Results)			(Results)			(Results)
Net cash provided by operating activities		3,334			1,752			28,941
Net cash used in investing activities		(211	)		(101	)		(17,262	)
Net cash used in financing activities		(755	)		(1,916	)		(6,596	)


English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese language			12

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents