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, 2005

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 þ Form 40-F o

[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 o No þ

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 26, 2005

(MAKITA LOGO)

Makita Corporation

Consolidated Financial Results
for the three months
ended June 30, 2005
(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, 2005

July 26, 2005

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

Notes to consolidated financial statements for the three months ended June 30, 2005

(1)		Adoption of simplified accounting methods: None.

(2)		Accounting policy changes from the year ended March 31, 2005: None.

(3)		Change in scope of consolidation and equity method: Consolidation (Excluded): 1 Joyama Kaihatsu Ltd.

Results of the three months ended June 30, 2005 (From April 1, 2005 to June 30, 2005)


(1) CONSOLIDATED FINANCIAL RESULTS


	Yen (million)
	For the three months				For the three months				For the year
	ended June 30,				ended June 30,				ended March 31,
	2004				2005				2005
			%				%				%
Net sales		46,575		8.5		50,221		7.8		194,737		5.8
Operating income		10,451		245.7		15,861		51.8		31,398		113.6
Income before income taxes		10,933		230.5		16,105		47.3		32,618		101.7
Net income		6,847		383.9		15,621		128.1		22,136		187.8

	Yen

Net income per share:
Basic		47.59				108.65				153.89
Diluted		45.95				—				148.78

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]

Owing to strong sales of new products in Japan as well as increases in sales in overseas markets, with the exception of Asia outside Japan, net sales were 7.8% higher than for the same quarter of the previous year and amounted to 50,221 million yen.

Profitwise, as a result of special factors, including exemption from a portion of the liabilities of a golf course management subsidiary that has undergone civil rehabilitation and has been sold, operating income rose 51.8% over the same quarter of the previous year, to 15,861 million yen; income before income taxes increased 47.3%, to 16,105 million yen; and net income rose 2.3 times, to 15,621 million yen.


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, 2004			June 30, 2005			March 31, 2005

Total assets		280,500			284,636			289,904
Shareholders’ equity		203,796			230,572			219,640
Shareholders’ equity ratio to total assets (%)		72.7	%		81.0	%		75.8	%

	Yen

Shareholders’ equity per share		1,416.46			1,603.85			1,527.64


[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,
	2004			2005			2005

Net cash provided by operating activities		1,752			2,448			16,842
Net cash provided by (used in) investing activities		(101	)		12,514			154
Net cash used in financing activities		(1,916	)		(9,917	)		(16,177	)
Cash and cash equivalents, end of period		24,892			30,447			25,384

[Qualitative information on consolidated cash flows]

Total cash and cash equivalents (“cash”) at the end of period amounted to 30,447 million yen, up 5,063 million yen from the previous year.

(Net Cash Provided by Operating Activities)

Net cash provided by operating activities amounted to 2,448 million yen for the quarter under review. This reflected net income of 15,621 million yen, the deduction of a gain of 8,479 million yen due to the exemption of liabilities of a golf course management subsidiary that did not result in an increase in cash, and an increase in inventories of 1,921 million yen.

(Net Cash Provided by Investing Activities)

Net cash provided by investing activities amounted to 12,514 million yen for the quarter under review. Although the Company made capital investments of 1,977 million yen, this was more than offset by proceeds from the sale of securities and the transfer of certain time deposits to cash accounts.

(Net Cash Used in Financing Activities)

Net cash used in financing activities was 9,917 million yen, reflecting the reimbursement of a portion of golf course members’ deposits in connection with civil rehabilitation of a golf course management subsidiary, the payment of dividends and other factors.

(Ref.)
[Qualitative information about the forecast for the year ending March 31, 2006]

The outlook for performance announced on April 28, 2005, has not been revised.

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		2

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS



	Yen (millions)
	As of			As of
	March 31,			June 30,			Increase
	2005			2005			(Decrease)

ASSETS
CURRENT ASSETS:
Cash and cash equivalents		25,384			30,447			5,063
Time deposits		7,867			3,950			(3,917	)
Marketable securities		58,015			49,576			(8,439	)
Trade receivables-
Notes		1,687			1,767			80
Accounts		38,997			36,638			(2,359	)
Less- Allowance for doubtful receivables		(1,178	)		(1,193	)		(15	)
Inventories		66,003			68,237			2,234
Deferred income taxes		3,831			6,356			2,525
Prepaid expenses and other current assets		7,286			8,027			741

Total current assets		207,892			203,805			(4,087	)


PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		17,673			17,550			(123	)
Buildings and improvements		51,085			51,117			32
Machinery and equipment		73,356			72,375			(981	)
Construction in progress		790			1,487			697

		142,904			142,529			(375	)
Less- Accumulated depreciation		(90,080	)		(89,185	)		895

		52,824			53,344			520


INVESTMENTS AND OTHER ASSETS:
Investment securities		22,373			20,876			(1,497	)
Deferred income taxes		390			344			(46	)
Other assets		6,425			6,267			(158	)

		29,188			27,487			(1,701	)

		289,904			284,636			(5,268	)


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

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS



	Yen (millions)
	As of			As of
	March 31,			June 30,			Increase
	2005			2005			(Decrease)

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings		9,060			8,565			(495	)
Trade notes and accounts payable		10,574			10,551			(23	)
Accrued payroll		7,695			5,834			(1,861	)
Club members’ deposits		12,836			—			(12,836	)
Accrued expenses and other		12,248			12,958			710
Income taxes payable		5,695			3,074			(2,621	)
Deferred income taxes		118			133			15

Total current liabilities		58,226			41,115			(17,111	)


LONG-TERM LIABILITIES:
Long-term indebtedness		88			76			(12	)
Accrued retirement and termination benefits		5,126			4,968			(158	)
Deferred income taxes		4,538			5,494			956
Other liabilities		887			1,023			136

		10,639			11,561			922


MINORITY INTERESTS		1,399			1,388			(11	)


SHAREHOLDERS’ EQUITY:
Common stock		23,805			23,805			—
Additional paid-in capital		45,430			45,430			—
Legal reserve and retained earnings		163,171			173,616			10,445
Accumulated other comprehensive loss		(9,249	)		(8,728	)		521
Treasury stock, at cost		(3,517	)		(3,551	)		(34	)

		219,640			230,572			10,932

		289,904			284,636			(5,268	)


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

(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,
	2004						2005						(Decrease)						2005

	(Amount)			(%)			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)
NET SALES		46,575			100.0			50,221			100.0			3,646			7.8			194,737			100.0
Cost of sales		27,672			59.4			29,625			59.0			1,953			7.1			113,323			58.2

GROSS PROFIT		18,903			40.6			20,596			41.0			1,693			9.0			81,414			41.8
Selling, general, administrative and other expenses		8,452			18.2			4,735			9.4			(3,717	)		(44.0	)		50,016			25.7

OPERATING INCOME		10,451			22.4			15,861			31.6			5,410			51.8			31,398			16.1


OTHER INCOME (EXPENSES):
Interest and dividend income		329			0.7			317			0.6			(12	)		(3.6	)		1,157			0.6
Interest expense		(159	)		(0.3	)		(133	)		(0.3	)		26			16.4			(588	)		(0.3	)
Exchange gains (losses) on foreign currency transactions, net		(82	)		(0.2	)		(154	)		(0.3	)		(72	)		(87.8	)		37			0.0
Realized gains on securities, net		208			0.4			189			0.4			(19	)		(9.1	)		453			0.2
Other, net		186			0.5			25			0.1			(161	)		(86.6	)		161			0.1

Total		482			1.1			244			0.5			(238	)		(49.4	)		1,220			0.6

INCOME BEFORE INCOME TAXES		10,933			23.5			16,105			32.1			5,172			47.3			32,618			16.7


PROVISION FOR INCOME TAXES:		4,086			8.8			484			1.0			(3,602	)		(88.2	)		10,482			5.3

NET INCOME		6,847			14.7			15,621			31.1			8,774			128.1			22,136			11.4


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

(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,
	2004			2005			2005
Net cash provided by operating activities		1,752			2,448			16,842
Net cash provided by (used in) investing activities		(101	)		12,514			154
Net cash used in financing activities		(1,916	)		(9,917	)		(16,177	)
Effect of exchange rate changes on cash and cash equivalents		581			18			(11	)

Net change in cash and cash equivalents		316			5,063			808
Cash and cash equivalents, beginning of period		24,576			25,384			24,576

Cash and cash equivalents, end of period		24,892			30,447			25,384


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

(MAKITA LOGO)

OPERATING SEGMENT INFORMATION


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 three months ended June 30, 2005

	Yen (millions)
													Corporate
			North										and elimi-			Consoli-
	Japan		America		Europe		Asia		Other		Total		nations			dated
Sales:
(1) External customers		12,329		9,294		20,242		2,173		6,183		50,221		—			50,221
(2) Intersegment		10,924		604		1,553		8,527		55		21,663		(21,663	)		—

Total		23,253		9,898		21,795		10,700		6,238		71,884		(21,663	)		50,221

Operating expenses		12,199		9,782		19,083		9,232		5,515		55,811		(21,451	)		34,360
Operating income		11,054		116		2,712		1,468		723		16,073		(212	)		15,861



For the year ended March 31, 2005

	Yen (millions)
													Corporate
			North										and elimi-			Consoli-
	Japan		America		Europe		Asia		Other		Total		nations			dated
Sales:
(1) External customers		50,955		38,607		75,864		7,378		21,933		194,737		—			194,737
(2) Intersegment		47,786		3,583		5,802		34,937		168		92,276		(92,276	)		—

Total		98,741		42,190		81,666		42,315		22,101		287,013		(92,276	)		194,737

Operating expenses		82,826		40,580		71,541		37,389		21,146		253,482		(90,143	)		163,339
Operating income		15,915		1,610		10,125		4,926		955		33,531		(2,133	)		31,398

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		7

(MAKITA LOGO)

SUPPORT DOCUMENTATION (CONSOLIDATION)


1. Consolidated results and forecast

	Yen (millions)
	For the three months					For the three months
	ended June 30,					ended June 30,
	2004					2005
	(Results)					(Results)
	(Amount)		(%)			(Amount)		(%)
Net sales		46,575		8.5			50,221		7.8
Domestic		8,896		(1.8	)		9,399		5.7
Overseas		37,679		11.3			40,822		8.3
Operating income		10,451		245.7			15,861		51.8
Income before income taxes		10,933		230.5			16,105		47.3
Net income		6,847		383.9			15,621		128.1
Net income per share (Yen)		47.59					108.65
Employees		8,499					8,427



	Yen (millions)
	For the year					For the six months					For the year
	ended March 31,					ending September 30,					ending March 31,
	2005					2005					2006
	(Results)					(Forecast)					(Forecast)
	(Amount)			(%)		(Amount)			(%)		(Amount)			(%)
Net sales		194,737			5.8		99,300			1.9		198,500			1.9
Domestic		39,379			0.6		19,300			1.4		39,000			(1.0	)
Overseas		155,358			7.2		80,000			2.0		159,500			2.7
Operating income		31,398			113.6		23,000			18.2		36,000			14.7
Income before income taxes		32,618			101.7		23,500			16.1		37,000			13.4
Net income		22,136			187.8		21,500			66.0		30,000			35.5
Net income per share (Yen)			153.89					149.54					208.66
Employees			8,560					—					—

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		8

(MAKITA LOGO)


2. 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,
	2004					2005					2005
	(Results)					(Results)					(Results)
	(Amount)		(%)			(Amount)		(%)			(Amount)		(%)
Japan		8,896		(1.8	)		9,399		5.7			39,379		0.6
North America		8,937		(8.1	)		9,184		2.8			38,490		(8.0	)
Europe		17,676		15.2			20,098		13.7			75,263		13.4
Asia		4,883		33.5			4,348		(11.0	)		16,341		14.7
Other regions		6,183		20.4			7,192		16.3			25,264		12.2
Total		46,575		8.5			50,221		7.8			194,737		5.8

Note:

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

3. Exchange rates

Yen

For the three

For the

months ended

year ended

year ending

June 30,

March 31,

2004

2005

2006

(Results)

(Forecast)

Yen/U.S. Dollar

109.63

107.73

107.55

105

Yen/Euro

132.15

135.47

135.17

135


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

	For the three
	months ended
	June 30, 2005
	(Results)
U.S.A.		4.5	%
Germany		4.4	%
U.K.		10.2	%
France		22.4	%
China		0.3	%
Australia		2.3	%


5. Production ratio (unit basis)

	For the three			For the three			For the
	months ended			months ended			year ended
	June 30,			June 30,			March 31,
	2004			2005			2005
	(Results)			(Results)			(Results)
Domestic		31.5	%		28.6	%		28.4	%
Overseas		68.5	%		71.4	%		71.6	%


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

(MAKITA LOGO)

6. 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,

2004

2005

2006

(Results)

(Forecast)

Capital expenditures

1,035

1,977

6,655

11,000

Depreciation and amortization

1,321

1,260

5,381

5,400

R&D cost

1,031

1,096

4,085

4,200

7. Consolidated cash flow

Yen (millions)

For the three

For the year

months ended

ended

June 30,

March 31,

2004

2005

(Results)

Net cash provided by operating activities

1,752

2,448

16,842

Net cash provided by (used in) investing activities

(101

)

12,514

154

Net cash used in financing activities

(1,916

)

(9,917

)

(16,177

)


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

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