UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

For the month of July, 2007

Commission file number 0-12602

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 Form 20-F or Form 40-F.

Form 20-F      X            Form 40-F         

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(1):     X    

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7):         

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    

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-        

 

 

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.

Date: July 31, 2007

Makita Corporation

Consolidated Financial Results
for the three months ended June 30, 2007
(U.S. GAAP Financial Information)

 
 

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

CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2007

July 31, 2007

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

(1) CONSOLIDATED FINANCIAL RESULTS

 

		Yen (million)
		For the three months ended												For the three months ended												For the year ended
		June 30, 2006												June 30, 2007												March 31, 2007
											%												%												%
Net sales			61,951								23.4				80,615								30.1				279,933								22.2
Operating income			10,480								(33.9	)			14,992								43.1				48,176								5.2
Income before income taxes			11,058								(31.3	)			15,417								39.4				49,323								0.4
Net income			7,820								(49.9	)			11,243								43.8				36,971								(8.5	)
		Yen
Net income per share:
Basic							54.41												78.24												257.27
Diluted							54.41												78.24												257.27

Notes:		1.		Amounts of less than one million yen have been rounded.
		2.		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.

(2) CONSOLIDATED FINANCIAL POSITION

 

		Yen (million)
		As of				As of				As of
		June 30, 2006				June 30, 2007				March 31, 2007
Total assets			321,780				386,361				368,494
Shareholders’ equity			267,556				316,071				302,675
Shareholders’ equity ratio to total assets (%)			83.1	%			81.8	%			82.1	%
		Yen
Shareholders’ equity per share			1,861.78				2,199.54				2,106.28
(3) CONSOLIDATED CASH FLOWS
		Yen (million)
		For the three months				For the three months				For the year ended
		ended June 30, 2006				ended June 30, 2007				March 31, 2007
Net cash provided by operating activities			2,368				3,337				32,360
Net cash provided by (used in) investing activities			2,252				6,157				(27,276	)
Net cash used in financing activities			(5,043	)			(7,928	)			(8,307	)
Cash and cash equivalents, end of period			38,859				39,602				37,128

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

2. Consolidated forecast for the year ending March 31, 2008 (From April 1, 2007 to March 31, 2008) (Ref.)

		Yen (million)
		For the six months ending												For the year ending
		September 30, 2007												March 31, 2008
										%												%
Net sales			162,000								22.8				320,000								14.3
Operating income			29,000								35.6				56,500								17.3
Income before income taxes			29,900								37.2				57,800								17.2
Net income			20,500								33.2				39,700								7.4
		Yen
Net income per share							142.66												276.27

3. Other

(1)		Changes in important subsidiaries during the term (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None.
(2)		Adoption of simplified accounting methods: None.
(3)		Accounting policy changes from the year ended March 31, 2007: None.

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

[Qualitative Information and Financial Statements]

1. Qualitative information on consolidated financial results

     Net sales rose 30.1% over the same quarter of the previous year, to 80,615 million yen. This performance was due to strong sales in Europe and other regions, and included a contribution from sales made by Fuji Robin Industries Ltd., which became a consolidated subsidiary in May of this year. Reflecting the weaker yen, sales also rose when currency conversions were performed.

     With regard to earnings, operating income amounted to 14,992 million yen (ratio of operating income to net sales; 18.6%), up 43.1% from the same quarter of the previous year, income before income taxes amounted to 15,417 million yen (ratio of income before income taxes to net sales; 19.1%), up 39.4% and net income for the quarter amounted to 11,243 million yen (ratio of net income to net sales; 13.9%), up 43.8%.

2. Qualitative information on consolidated financial position

     Total cash and cash equivalents (“cash”) at the end of period amounted to 39,602 million yen, up 2,474 million yen from the end of the previous year.

          (Net Cash Provided by Operating Activities)

     Net cash provided by operating activities amounted to 3,337 million yen, reflecting factors including favorable business performance.

          (Net Cash Provided by Investing Activities)

     Net cash provided by investing activities amounted to 6,157 million yen. Although the Company made capital expenditures, principally for the rebuilding of Head office and Okazaki plant, these cash outflows were more than offset by proceeds from the sale of securities.

          (Net Cash Used in Financing Activities)

     Net cash used in financing activities amounted to 7,928 million yen, reflecting the payment of cash dividends and other factors.

3. Qualitative information on consolidated forecast for the year ending March 31, 2008

     Consolidated performance during the fiscal 2008 is expected to exceed the earlier forecasts (as of May 8, 2007). In addition to strong sales in Eastern Europe and Russia for the quarter under review, weakness of the Japanese yen serves to increase both sales and earnings.

(Ref.) Revised outlook for consolidated performance during the fiscal 2008
		Yen (millions)
		For the six months ending September 30, 2007
										Income before
		Net sales				Operating income				income taxes				Net income
Outlook announced previously (A)			149,800				26,700				27,000				18,500
Revised outlook (B)			162,000				29,000				29,900				20,500
Change (B-A)			12,200				2,300				2,900				2,000
Percentage revision			8.1	%			8.6	%			10.7	%			10.8	%
Actual results for the previous period ended September 30, 2006			131,891				21,387				21,796				15,390

		Yen (millions)
		For the year ending March 31, 2008
										Income before
		Net sales				Operating income				income taxes				Net income
Outlook announced previously (A)			302,000				53,300				53,900				37,000
Revised outlook (B)			320,000				56,500				57,800				39,700
Change (B-A)			18,000				3,200				3,900				2,700
Percentage revision			6.0	%			6.0	%			7.2	%			7.3	%
Actual results for the previous year ended March 31, 2007			279,933				48,176				49,323				36,971

Assumptions:

     The above forecast is based on the assumption of exchange rates of 117 yen to US$1 and 163 yen to 1 Euro.

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

4. Other

     Changes in important subsidiaries during the term (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None.

(Ref.) Changes in scope of consolidation and equity method
		Consolidation		(Newly included)		2 subsidiaries (Fuji Robin Industries Ltd., etc.)
						2 equity method affiliates

Note:

     The name of Fuji Robin Industries Ltd. is scheduled to change to “Makita Numazu Corporation” on August 1, 2007.

(FORWARD-LOOKING STATEMENTS)

     This document contains forward-looking statements based on information available and rational assumptions as of this time. Actual results could differ substantially from the content of these statements, due to one or more of a variety of factors. Important factors deemed to have potential to significantly influence actual results are those noted below. Note that these are not the only factors that can influence actual performance.

	(1)		Makita’s sales are affected by the levels of construction activities and capital investments in its markets.
	(2)		Currency exchange rate fluctuations may adversely affect Makita’s financial results.
	(3)		The global intensified competition may adversely affect Makita’s sales results.
	(4)		If Makita is not able to develop attractive products, Makita’s sales activities may be adversely affected.
	(5)		Geographic concentration of Makita’s main facilities may have adverse effects on Makita’s business activities.
	(6)		Makita’s overseas activities and entry into overseas markets entail risks, which may have a material adverse effect on Makita’s business activities.
	(7)		If Makita fails to maintain cooperative relationships with significant customers, Makita’s sales may be seriously affected.
	(8)		If any of Makita’s suppliers fail to deliver materials or parts required for production as scheduled, Makita’s production activities may be adversely affected.
	(9)		When the procurement of raw materials used by Makita becomes difficult or prices of these raw materials rise sharply, this may have an adverse impact on performance.
	(10)		Product liability litigation or recalls may harm Makita’s financial statements and reputation.
	(11)		Fluctuations in stock market prices may adversely affect Makita’s financial statements.
	(12)		Violation of intellectual property rights may have an adverse impact on performance.
	(13)		Environmental or other government regulations may have a material adverse impact on Makita’s business activities.
	(14)		Investor confidence and the value of Makita’s ADRs and ordinary shares may be adversely impacted if Makita’s management concludes that Makita’s internal controls over financial reporting are not effective as of March 31, 2008, or if Makita’s independent registered public accounting firm is unable to attest to management’s assessment, or to provide unqualified opinion on the effectiveness of Makita’s internal controls over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act of 2002.

     Regarding the assumptions for the revised forecast, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative information on consolidated forecast for the year ending March 31, 2008” (on page 3).

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

5. Condensed Quarterly Consolidated Financial Statements

(1) CONDENSED CONSOLIDATED BALANCE SHEETS
		Yen (millions)
		As of March				As of June				Increase
		31, 2007				30, 2007				(Decrease)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			37,128				39,602				2,474
Time deposits			6,866				8,691				1,825
Marketable securities			58,217				45,546				(12,671	)
Trade receivables-
Notes			3,125				4,045				920
Accounts			54,189				58,034				3,845
Less- Allowance for doubtful receivables			(869	)			(982	)			(113	)
Inventories			92,800				104,632				11,832
Deferred income taxes			5,080				3,999				(1,081	)
Prepaid expenses and other current assets			9,963				11,715				1,752
Total current assets			266,499				275,282				8,783
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			16,732				19,050				2,318
Buildings and improvements			57,242				62,309				5,067
Machinery and equipment			74,087				78,269				4,182
Construction in progress			5,576				4,955				(621	)
			153,637				164,583				10,946
Less- Accumulated depreciation			(90,257	)			(93,287	)			(3,030	)
			63,380				71,296				7,916
INVESTMENTS AND OTHER ASSETS:
Investment securities			27,279				26,892				(387	)
Deferred income taxes			1,367				1,392				25
Other assets			9,969				11,499				1,530
			38,615				39,783				1,168
			368,494				386,361				17,867

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

		Yen (millions)
		As of March				As of June				Increase
		31, 2007				30, 2007				(Decrease)
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings			1,892				3,146				1,254
Trade notes and accounts payable			16,025				21,069				5,044
Accrued payroll			8,571				7,012				(1,559	)
Accrued expenses and other			17,353				18,255				902
Income taxes payable			10,447				5,417				(5,030	)
Deferred income taxes			28				31				3
Total current liabilities			54,316				54,930				614
LONG-TERM LIABILITIES:
Long-term indebtedness			53				956				903
Accrued retirement and termination allowances			3,227				4,053				826
Deferred income taxes			4,976				5,720				744
Other liabilities			1,112				2,017				905
			9,368				12,746				3,378
MINORITY INTERESTS			2,135				2,614				479
SHAREHOLDERS’ EQUITY:
Common stock			23,805				23,805				—
Additional paid-in capital			45,437				45,437				—
Legal reserve and retained earnings			221,034				224,374				3,340
Accumulated other comprehensive income			12,697				22,764				10,067
Treasury stock, at cost			(298	)			(309	)			(11	)
			302,675				316,071				13,396
			368,494				386,361				17,867

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

(2) CONDENSED CONSOLIDATED STATEMENTS OF INCOME
		Yen (millions)
		For the three								For the three																For the year
		months ended								months ended								Increase								ended
		June 30, 2006								June 30, 2007								(Decrease)								March 31, 2007
		(Amount)				(%)				(Amount)				(%)				(Amount)				(%)				(Amount)				(%)
NET SALES			61,951				100.0				80,615				100.0				18,664				30.1				279,933				100.0
Cost of sales			36,374				58.7				47,862				59.4				11,488				31.6				163,909				58.6
GROSS PROFIT			25,577				41.3				32,753				40.6				7,176				28.1				116,024				41.4
Selling, general, administrative and other expenses			15,097				24.4				17,761				22.0				2,664				17.6				67,848				24.2
OPERATING INCOME			10,480				16.9				14,992				18.6				4,512				43.1				48,176				17.2
OTHER INCOME (EXPENSES) :
Interest and dividend income			342				0.6				585				0.7				243				71.1				1,364				0.5
Interest expense			(70	)			(0.1	)			(89	)			(0.1	)			(19	)			27.1				(316	)			(0.1	)
Exchange gains (losses) on foreign currency transactions, net			15				—				31				—				16				106.7				(418	)			(0.2	)
Realized gains on securities, net			339				0.5				12				—				(327	)			(96.5	)			918				0.3
Other, net			(48	)			(0.1	)			(114	)			(0.1	)			(66	)			137.5				(401	)			(0.1	)
Total			578				0.9				425				0.5				(153	)			(26.5	)			1,147				0.4
INCOME BEFORE INCOME TAXES			11,058				17.8				15,417				19.1				4,359				39.4				49,323				17.6
PROVISION FOR INCOME TAXES			3,238				5.2				4,174				5.2				936				28.9				12,352				4.4
NET INCOME			7,820				12.6				11,243				13.9				3,423				43.8				36,971				13.2

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

(3) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
		Yen (millions)
		For the three				For the three				For the year
		months ended				months ended				ended
		June 30, 2006				June 30, 2007				March 31, 2007
Net cash provided by operating activities			2,368				3,337				32,360
Net cash provided by (used in) investing activities			2,252				6,157				(27,276	)
Net cash used in financing activities			(5,043	)			(7,928	)			(8,307	)
Effect of exchange rate changes on cash and cash equivalents			228				908				1,297
Net change in cash and cash equivalents			(195	)			2,474				(1,926	)
Cash and cash equivalents, beginning of period			39,054				37,128				39,054
Cash and cash equivalents, end of period			38,859				39,602				37,128

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

(4) OPERATING SEGMENT INFORMATION

For the three months ended June 30, 2006
		Yen (millions)
																										Corporate
										North																and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			14,152				26,310				11,942				2,440				7,107				61,951				—				61,951
(2) Intersegment			14,354				1,313				1,311				15,089				48				32,115				(32,115	)			—
Total			28,506				27,623				13,253				17,529				7,155				94,066				(32,115	)			61,951
Operating expenses			24,636				24,231				12,909				14,822				6,231				82,829				(31,358	)			51,471
Operating income			3,870				3,392				344				2,707				924				11,237				(757	)			10,480

For the three months ended June 30, 2007
		Yen (millions)
																										Corporate
										North																and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			16,479				37,760				13,540				2,888				9,948				80,615				—				80,615
(2) Intersegment			15,924				1,476				1,217				22,030				49				40,696				(40,696	)			—
Total			32,403				39,236				14,757				24,918				9,997				121,311				(40,696	)			80,615
Operating expenses			27,056				33,079				14,143				21,518				8,666				104,462				(38,839	)			65,623
Operating income			5,347				6,157				614				3,400				1,331				16,849				(1,857	)			14,992

For the year ended March 31, 2007
		Yen (millions)
																										Corporate
										North																and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			61,776				124,924				51,432				9,698				32,103				279,933				—				279,933
(2) Intersegment			64,040				5,709				5,297				67,021				149				142,216				(142,216	)			—
Total			125,816				130,633				56,729				76,719				32,252				422,149				(142,216	)			279,933
Operating expenses			108,403				112,577				54,217				66,815				28,786				370,798				(139,041	)			231,757
Operating income			17,413				18,056				2,512				9,904				3,466				51,351				(3,175	)			48,176

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

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

SUPPORT DOCUMENTATION (CONSOLIDATION)

1. Consolidated results and outlook
		Yen (millions)
		For the three months								For the three months
		ended June 30, 2006								ended June 30, 2007
		(Results)								(Results)
		(Amount)				(%)				(Amount)				(%)
Net sales			61,951				23.4				80,615				30.1
Domestic			10,777				14.7				12,090				12.2
Overseas			51,174				25.4				68,525				33.9
Operating income			10,480				(33.9	)			14,992				43.1
Income before income taxes			11,058				(31.3	)			15,417				39.4
Net income			7,820				(49.9	)			11,243				43.8
Net income per share (Yen)				54.41								78.24
Employees				8,708								9,443

		Yen (millions)
		For the year ended								For the six months								For the year ending
		March 31, 2007								ending September								March 31, 2008
		(Results)								30, 2007 (Outlook)								(Outlook)
		(Amount)				(%)				(Amount)				(%)				(Amount)				(%)
Net sales			279,933				22.2				162,000				22.8				320,000				14.3
Domestic			46,860				12.6				25,400				10.8				52,400				11.8
Overseas			233,073				24.3				136,600				25.4				267,600				14.8
Operating income			48,176				5.2				29,000				35.6				56,500				17.3
Income before income taxes			49,323				0.4				29,900				37.2				57,800				17.2
Net income			36,971				(8.5	)			20,500				33.2				39,700				7.4
Net income per share (Yen)				257.27								142.66								276.27
Employees				9,062								—								—

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.
		Please refer to page 3 for the qualitative information on the outlook for the six months and fiscal year.

2. Consolidated net sales by geographic area
		Yen (millions)
		For the three months								For the three months								For the year ended
		ended June 30, 2006								ended June 30, 2007								March 31, 2007
		(Results)								(Results)								(Results)
		(Amount)				(%)				(Amount)				(%)				(Amount)				(%)
Japan			10,777				14.7				12,090				12.2				46,860				12.6
Europe			26,131				30.0				37,632				44.0				124,020				37.0
North America			11,988				30.5				13,672				14.0				51,472				8.0
Asia			4,621				6.3				5,422				17.3				19,469				14.6
Other regions			8,434				17.3				11,799				39.9				38,112				18.0
The Middle East and Africa			2,931				16.4				4,038				37.8				13,064				19.6
Central and South America			2,749				35.8				3,828				39.3				12,704				20.6
Oceania			2,754				4.0				3,933				42.8				12,344				13.7
Total			61,951				23.4				80,615				30.1				279,933				22.2

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

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

3. Exchange rates

Yen

For the three months ended

For the three months ended

For the year ended

For the six months ending

For the year ending

June 30, 2006

June 30, 2007

March 31, 2007

September 30, 2007

March 31, 2008

(Results)

(Results)

(Results)

(Outlook)

(Outlook)

Yen/U.S. Dollar

114.50

120.82

116.97

119

118

Yen/Euro

143.82

162.75

150.02

163

163

4. Sales growth in local currency basis (major countries)
		For the three months ended
		June 30, 2007
		(Results)
U.S.A.			1.3	%
Germany			19.0	%
U.K.			28.9	%
France			16.9	%
China			37.5	%
Australia			18.4	%

5. Production ratio (unit basis)
		For the three months ended				For the three months ended				For the year ended
		June 30, 2006				June 30, 2007				March 31, 2007
		(Results)				(Results)				(Results)
Domestic			28.5	%			24.7	%			27.4	%
Overseas			71.5	%			75.3	%			72.6	%

6. Consolidated capital expenditures, depreciation and amortization, and R&D cost
		Yen (millions)
		For the three months ended				For the three months ended				For the year ended				For the year ending
		June 30, 2006				June 30, 2007				March 31, 2007				March 31, 2008
		(Results)				(Results)				(Results)				(Outlook)
Capital expenditures			2,443				3,961				12,980				17,700
Depreciation and amortization			1,484				1,802				8,773				8,700
R&D cost			1,260				1,403				5,460				5,800

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