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 January, 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
MAKITA CORPORATION CONSOLIDATED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2003
CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
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: January 28, 2004

(MAKITA CORPORATION LOGO)

Makita Corporation

Consolidated Financial Results
for the nine months
ended December 31, 2003
(U.S. GAAP Financial Information)

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

(MAKITA CORPORATION LOGO)

CONSOLIDATED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2003

January 28, 2004

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

Notes to consolidated financial statements for the nine months ended December 31, 2003

(1)

Accounting policy changes from the year ended March 31, 2003: None.

(2)

Change in scope of consolidation and equity method:

Consolidation: (Newly included) OOO. Makita (in Russia)

Results of the nine months ended December 31, 2003 (From April 1, 2003 to December 31, 2003)

(1)

CONSOLIDATED FINANCIAL RESULTS


		Yen (million)

		For the nine months					For the nine months				For the year
		ended December 31,					ended December 31,				ended March 31,
		2003					2002				2003

				%					%				%
Net sales			135,432		4.1			130,042		—		175,603		5.7
Operating income			9,378		(0.7	)		9,448		—		12,468		112.3
Income before income taxes			10,376		29.0			8,043		—		9,292		173.1
Net income			2,919		(45.4	)		5,346		—		6,723		4,954.9

		Yen

Earnings per share:
	Basic		20.14					35.81				45.29
	Diluted		19.94					34.91				44.20

Note:

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

[Qualitative information on consolidated financial results]

For the nine months ended December 31, 2003, we further shifted production to China and bolstered our sales network in Eastern Europe and Russia.

Net sales rose to 135.4 billion yen, a 4.1% increase from the same period of the previous year. This was mainly due to strong sales in Europe that countered sluggish sales in North America.

Operating Income amounted to 9.4 billion yen, down 0.7% from the same period of the previous year, reflecting improved gross margin, mainly due to such factors as an increased percentage of production in China and the strong Euro, offset by a 5.0 billion yen impairment loss in the current period related to a subsidiary’s golf course, as a result of the re-evaluation of asset realizability. Income before income taxes improved by 29.0% to 10.4 billion yen, mainly due to markedly decreased foreign currency losses. Net income declined to 2.9 billion yen or 45.4%. This was primarily due to the 100 per cent valuation allowance provided on the Deferred Income Tax asset on the impairment loss noted above.

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

(MAKITA CORPORATION LOGO)

(2)

CONSOLIDATED FINANCIAL POSITION


	Yen (million)

	As of			As of
	December 31, 2003			March 31, 2003

Total assets		274,139			278,600
Shareholders’ equity		181,626			182,400
Shareholders’ equity ratio to total assets (%)		66.3	%		65.5	%

	Yen

Shareholders’ equity per share		1,262.06			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 third quarter of the previous year.

[CONSOLIDATED CASH FLOWS]


	Yen (million)

	For the nine months			For the year
	ended			ended
	December 31, 2003			March 31, 2003

Net cash provided by operating activities		20,677			27,141
Net cash used in investing activities		(10,327	)		(9,659	)
Net cash used in financing activities		(5,833	)		(13,381	)
Cash and cash equivalents, end of period		23,898			20,370

Note:

The Company did not compile data for cash flows in the third quarter of the previous year.

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


	Yen (million)

	For the year ending
	March 31, 2004

Net sales		182,000
Income before income taxes		14,600
Net income		5,500

	Yen

Earnings per share		38.22

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

The above consolidated performance forecast has primarily been adjusted from the prior forecast on October 28, 2003 because of a changed exchange rate assumption, 112 yen to US$1 and 132 yen to 1 Euro for the year ending March 31, 2004. Also, we expect sales in Western European countries to exceed the earlier initial forecasts.

As information, the nonconsolidated performance estimate for the year ending March 31, 2004 that was announced on October 28, 2003 is unchanged as it has not been materially affected by the noted exchange rate assumption change.

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

(MAKITA CORPORATION LOGO)

CONSOLIDATED BALANCE SHEETS


				Yen (millions)

				As of			As of
				December 31,			March 31,			Increase
				2003			2003			(Decrease)

ASSETS
	CURRENT ASSETS:
		Cash and cash equivalents			23,898			20,370			3,528
		Time deposits			5,154			4,520			634
		Marketable securities			46,546			39,193			7,353
		Trade receivables —
			Notes		2,376			2,122			254
			Accounts		31,460			34,630			(3,170	)
			Less — Allowance for doubtful receivables		(1,544	)		(1,456	)		(88	)
		Inventories			56,787			62,606			(5,819	)
		Deferred income taxes			3,301			3,515			(214	)
		Prepaid expenses and other current assets			7,612			8,065			(453	)

			Total current assets		175,590			173,565			2,025

	PROPERTY, PLANT AND EQUIPMENT, at cost:
		Land			19,316			21,497			(2,181	)
		Buildings and improvements			50,444			66,738			(16,294	)
		Machinery and equipment			74,759			78,221			(3,462	)
		Construction in progress			487			2,165			(1,678	)

					145,006			168,621			(23,615	)
		Less — Accumulated depreciation			(90,457	)		(100,823	)		10,366

					54,549			67,798			(13,249	)

	INVESTMENTS AND OTHER ASSETS:
		Investment securities			28,851			19,342			9,509
		Deferred income taxes			7,831			10,386			(2,555	)
		Other assets			7,318			7,509			(191	)

					44,000			37,237			6,763

					274,139			278,600			(4,461	)

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

(MAKITA CORPORATION LOGO)

CONSOLIDATED BALANCE SHEETS


				Yen (millions)

				As of			As of
				December 31,			March 31,			Increase
				2003			2003			(Decrease)

LIABILITIES AND SHAREHOLDERS’ EQUITY
	CURRENT LIABILITIES:
		Short-term borrowings			1,785			2,892			(1,107	)
		Trade notes and accounts payable			14,718			13,956			762
		Accrued payroll			5,592			7,162			(1,570	)
		Accrued expenses and other			4,431			3,535			896
		Income taxes payable			2,911			3,858			(947	)
		Deferred income taxes			280			403			(123	)

			Total current liabilities		29,717			31,806			(2,089	)

	LONG-TERM LIABILITIES:
		Long-term indebtedness			20,380			19,843			537
		Club members’ deposits			13,170			14,207			(1,037	)
		Estimated retirement and termination allowances			27,416			27,778			(362	)
		Deferred income taxes			565			1,407			(842	)

					61,531			63,235			(1,704	)

MINORITY INTERESTS					1,265			1,159			106

SHAREHOLDERS’ EQUITY:
	Common stock				23,803			23,803			—
	Additional paid-in capital				45,421			45,419			2
	Legal reserve and retained earnings				139,716			143,422			(3,706	)
	Accumulated other comprehensive loss				(24,022	)		(25,134	)		1,112
	Treasury stock, at cost				(3,292	)		(5,110	)		1,818

					181,626			182,400			(774	)

					274,139			278,600			(4,461	)

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

(MAKITA CORPORATION LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


			Yen (millions)

			For the						For the												For the
			nine months ended						nine months ended												year ended
			December 31,						December 31,						Increase						March 31,
			2003						2002						(Decrease)						2003

			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)			(Amount)			(%)
NET SALES				135,432			100.0	%		130,042			100.0	%		5,390			4.1	%		175,603			100.0	%
	Cost of sales			82,108			60.6	%		81,772			62.9	%		336			0.4	%		110,226			62.8	%

GROSS PROFIT				53,324			39.4	%		48,270			37.1	%		5,054			10.5	%		65,377			37.2	%
	Selling, general, administrative and other expenses			43,946			32.5	%		38,822			29.8	%		5,124			13.2	%		52,909			30.1	%

OPERATING INCOME				9,378			6.9	%		9,448			7.3	%		(70	)		(0.7	%)		12,468			7.1	%

OTHER INCOME (EXPENSES):
	Interest and dividend income			578			0.4	%		653			0.5	%		(75	)		(11.5	%)		786			0.4	%
	Interest expense			(453	)		(0.3	%)		(608	)		(0.5	%)		155			25.5	%		(665	)		(0.4	%)
	Exchange losses on foreign currency transactions, net			(31	)		(0.0	%)		(1,767	)		(1.4	%)		1,736			98.2	%		(1,460	)		(0.8	%)
	Realized gains (losses) on securities, net			345			0.3	%		(176	)		(0.1	%)		521			—			(2,590	)		(1.5	%)
	Other, net			559			0.4	%		493			0.4	%		66			13.4	%		753			0.5	%

		Total		998			0.8	%		(1,405	)		(1.1	%)		2,403			—			(3,176	)		(1.8	%)

INCOME BEFORE INCOME TAXES				10,376			7.7	%		8,043			6.2	%		2,333			29.0	%		9,292			5.3	%

PROVISION FOR INCOME TAXES				7,457			5.5	%		2,697			2.1	%		4,760			176.5	%		2,569			1.5	%

NET INCOME				2,919			2.2	%		5,346			4.1	%		(2,427	)		(45.4	%)		6,723			3.8	%

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

(MAKITA CORPORATION LOGO)

SUPPORT DOCUMENTATION (CONSOLIDATION)

Consolidated results and forecast


		Yen (millions)

		For the				For the
		nine months ended				nine months ended
		December 31,				December 31,
		2002				2003
		(Results)				(Results)

		(Amount)		(%)		(Amount)		(%)
Net sales			130,042		—		135,432		4.1	%
	Domestic		28,562		—		28,675		0.4	%
	Overseas		101,480		—		106,757		5.2	%
Operating income			9,448		—		9,378		(0.7	%)
Income before income taxes			8,043		—		10,376		29.0	%
Net income			5,346		—		2,919		(45.4	%)
EPS (Yen)			35.81				20.14
Employees			8,145				8,661


		Yen (millions)

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

		(Amount)		(%)			(Amount)		(%)			(Amount)		(%)
Net sales			175,603		5.7	%		91,757		4.7	%		182,000		3.6	%
	Domestic		38,781		(1.8	%)		19,244		(0.1	%)		39,000		0.6	%
	Overseas		136,822		8.0	%		72,513		6.0	%		143,000		4.5	%
Operating income			12,468		112.3	%		9,247		47.5	%		13,600		9.1	%
Income before income taxes			9,292		173.1	%		9,894		123.7	%		14,600		57.1	%
Net income			6,723		4,954.9	%		4,981		58.8	%		5,500		(18.2	%)
EPS (Yen)			45.29					34.25					38.22
Employees			8,344					8,471					—

Note:

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

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

(MAKITA CORPORATION LOGO)

Consolidated net sales by geographic area


		Yen (millions)

		For the				For the					For the					For the
		nine months ended				nine months ended					year ended					six months ended
		December 31,				December 31,					March 31,					September 30,
		2002				2003					2003					2003
		(Results)				(Results)					(Results)					(Results)

		(Amount)		(%)		(Amount)		(%)			(Amount)		(%)			(Amount)		(%)
Japan			28,562		—		28,675		0.4	%		38,781		(1.8	%)		19,244		(0.1	%)
North America			34,674		—		31,717		(8.5	%)		45,573		(5.7	%)		22,085		(8.7	%)
Europe			41,716		—		48,580		16.5	%		57,648		18.9	%		32,085		19.4	%
Southeast Asia			9,978		—		10,075		1.0	%		13,774		11.3	%		7,314		1.9	%
Other regions			15,112		—		16,385		8.4	%		19,827		13.5	%		11,029		8.8	%
	Total		130,042		—		135,432		4.1	%		175,603		5.7	%		91,757		4.7	%

Exchange rates

Yen

For the

nine months ended

December 31,

2002

2003

(Results)

Yen/U.S. Dollar

122.92

115.09

Yen/Euro

118.76

132.20

Yen

For the

year ended

six months ended

year ending

March 31,

September 30,

March 31,

2003

2004

(Results)

(Forecast)

Yen/U.S. Dollar

121.98

118.07

112

Yen/Euro

120.88

133.51

132

Sales growth in local currency basis (major countries)


	For the
	nine months ended
	December 31,
	2003
	(Results)

U.S.A.		(5.0	%)
Germany		5.2	%
U.K.		8.1	%
France		5.6	%
China		2.8	%
Australia		4.5	%

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

(MAKITA CORPORATION LOGO)

Production ratio (unit basis)

For the

nine months ended

year ended

six months ended

December 31,

March 31,

September 30,

2003

(Results)

Domestic

33.6

36.9

34.7

Overseas

66.4

63.1

65.3

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

Yen (millions)

For the

nine months ended

year ended

six months ended

year ending

December 31,

March 31,

September 30,

March 31,

2003

2004

(Results)

(Forecast)

Capital expenditures

3,067

5,691

2,270

4,000

Depreciation and amortization

6,380

9,740

4,330

8,000

R&D cost

2,954

3,856

1,954

3,900

7. Consolidated cash flow

Yen (millions)

For the

nine months ended

year ended

six months ended

December 31,

March 31,

September 30,

2003

(Results)

Net cash provided by operating activities

20,677

27,141

11,696

Net cash used in investing activities

(10,327

)

(9,659

)

(4,994

)

Net cash used in financing activities

(5,833

)

(13,381

)

(4,938

)

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

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