UNITED STATES 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, 2012

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  þ      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  þ

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

 

 

 

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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, 2012

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Makita Corporation

Consolidated Financial Results

for the three months

ended June 30, 2012

(U.S. GAAP Financial Information)

(English translation of “KESSAN TANSHIN”

originally issued in Japanese)

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CONSOLIDATED FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2012 (Unaudited)

July 31, 2012

Makita Corporation

Stock code: 6586

URL: http://www.makita.co.jp/

Masahiko Goto, President, Representative Director & CEO

1. Summary operating results of the three months ended June 30, 2012 (From April 1, 2012 to June 30, 2012)

(1) CONSOLIDATED OPERATING RESULTS

		Yen (millions)
		For the three months ended June 30, 2011										For the three months ended June 30, 2012
						%										%
Net sales			76,078				17.4						74,942				(1.5	)
Operating income			13,011				28.4						11,979				(7.9	)
Income before income taxes			13,449				43.2						10,153				(24.5	)
Net income attributable to Makita Corporation			9,456				56.4						6,991				(26.1	)
Comprehensive income (loss)			7,616				—						(8,101	)			—
			Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			68.64										51.50

Notes:

1.

Amounts of less than one million yen have been rounded.

2.

The table above shows the changes in the percentage ratio of net sales, operating income, income before income taxes, and net income attributable to Makita Corporation against the corresponding period of the previous year.

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

		Yen (millions)
		As of March 31, 2012						As of June 30, 2012
Total assets			383,256						357,171
Total equity			323,778						307,938
Total Makita Corporation shareholders’ equity			321,253						305,635
Total Makita Corporation shareholders’ equity ratio to total assets (%)			83.8%						85.6%
2. Dividend Information
		Yen
		For the year ended March 31, 2012						For the year ending March 31, 2013 (Forecast)
Cash dividend per share:
Interim			15.00						15.00
Year-end			57.00						(Note	)
Total			72.00						(Note	)

Notes:

The forecast for cash dividend announced on April 27, 2012 has not been revised.

 

		1
English translation of “KESSAN TANSHIN” originally issued in Japanese

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3. Consolidated Financial Performance Forecast for the year ending March 31, 2013 (From April 1, 2012 to March 31, 2013)

		Yen (millions)
		For the six months ending September 30, 2012								For the year ending March 31, 2013
						%								%
Net sales			144,000				(5.9	)			280,000				(5.3	)
Operating income			21,600				(19.9	)			38,000				(21.7	)
Income before income taxes			19,200				(21.7	)			35,000				(25.5	)
Net income attributable to Makita Corporation			13,400				(21.7	)			24,000				(26.1	)
		Yen
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders			98.71								176.80

Notes:

The consolidated financial forecast for the year ending March 31, 2013 has been revised.

4. Other

(Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 5.)

(1)	Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the quarter): Not applicable

 

(2)	Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements: Yes

 

(3)	Changes in accounting policies, procedures and presentation rules applied in the preparation of the quarterly consolidated financial statements:

1.

Changes due to revisions to accounting standards:

2.

Changes due to other reasons: Not applicable

 

(4)	Number of shares outstanding (common stock)

 

Information regarding quarterly review

This consolidated financial results is not subject to a quarterly review stipulated under the Financial Instruments and Exchange Act. As of the release date of this document, the quarterly review under the Financial Instruments and Exchange Act has not been completed.

Explanation regarding proper use of business forecasts, and other significant matters

Regarding the assumptions for the forecasts and other matters, refer to [Qualitative Information and Financial Statements] Section 3 “Qualitative information on consolidated financial performance forecast” on page 4. The financial forecasts given above are based on information as available at the present time, and include potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecasts provided above.

 

		2
English translation of “KESSAN TANSHIN” originally issued in Japanese

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[Qualitative Information and Financial Statements]

1. Qualitative Information on Consolidated Operating Results

Looking at the global economic situation during the first three-month period of the fiscal year ending March 31, 2013, In Europe, Western Europe's economy remained sluggish due to the deterioration of the financial crisis in the region. However, the Russian economy was still solid due to the continuing high level of crude oil prices. In the United States, the economy remained weak because the housing market was still stagnant, though consumer spending showed some signs of recovery. In Asia, the economy expanded mainly in the Southeast Asia though the growth of the Chinese economy slowed down. The economy in Central and South America, which had been enjoying steady growth, started losing steam. Meanwhile, in Japan, the economy continued gradual recovery due to increasing demand for reconstruction from the Great East Japan Earthquake.

In the first three-month period of the current fiscal year, our consolidated net sales decreased by 1.5% from a year earlier to 74,942 million yen. This was because demand slowed down in Europe and the yen became stronger against other major currencies compared to the same period in the previous year, although sales were solid in Japan. As for incomes, operating income decreased by 7.9% from a year earlier to 11,979 million yen (operating income ratio: 16.0%) due to a decline in the rate of operation at the plant compared to the previous year as well as a fall in net sales. Income before income taxes decreased by 24.5% from a year earlier to 10,153 million yen (income before income taxes ratio: 13.5%) due to an increase in non-operating expense, such as foreign exchange losses of 2,176 million yen because of the yen’s appreciation. Consequently, net income attributable to Makita Corporation plunged by 26.1% from a year earlier to 6,991 million yen (net income attributable to Makita Corporation ratio: 9.3%).

Net sales by region are as follows:

Net sales in Japan increased by 11.5% to 13,059 million yen compared to the same period of the previous year. This was because of the continuing favorable sales of lithium-ion battery products, mainly impact drivers.

Net sales in Europe decreased by 7.4% to 30,238 million yen compared to the same period of the previous year. This was due to sales in Western Europe declined because of the effects of the financial uncertainty and a sharp appreciation of the yen against the euro from a year earlier, though sales to Russia continued to be strong.

Net sales in North America decreased by 1.5% from a year earlier to 9,668 million yen, because the U.S. housing market did not show a full recovery, although sales of cordless tools with lithium-ion battery were strong.

Net sales in Asia increased by 2.8% from a year earlier to 7,451 million yen, because demands were robust in Southeast Asian countries, although sales stalled in China.

Sales situation in other regions are as follows: Net sales in Central and South America decreased by 16.7% from a year earlier to 5,056 million yen, because demand was on the wane. Net sales in Oceania dropped by 1.3% from a year earlier to 4,674 million yen. Meanwhile, net sales in the Middle East and Africa increased by 25.1% from a year earlier to 4,796 million yen, because demand was strong in the Persian Gulf countries.

2. Qualitative Information on Consolidated Financial Position

Total assets as of June 30, 2012 decreased by 26,085 million yen to 357,171 million yen compared to the balance as of March 31, 2012. The decrease was mainly due to a decline in “Inventories” and “Time deposits”.

Total liabilities as of June 30, 2012 decreased by 10,245 million yen to 49,233 million yen compared to the balance as of March 31, 2012. The decrease was mainly due to a decline in “Trade notes and accounts payable” and “Income taxes payable”.

Total equity as of June 30, 2012 decreased by 15,840 million yen to 307,938 million yen compared to the balance as of March 31, 2012. The decrease was mainly due to a change in foreign currency translation adjustment because the yen remained stronger against other currencies compared to March 31, 2012.

 

		3
English translation of “KESSAN TANSHIN” originally issued in Japanese

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3. Qualitative Information on Consolidated Financial Performance Forecast

Our sales during the first quarter of the current fiscal year as a whole were, although with some variations by regions, about the same level as we had expected. We revise our forecast, however, since the yen appreciation against foreign currencies including euro has been higher than our projection that was published on April 27, 2012.

Revised Forecast for Consolidated Performance during the fiscal 2012 (from April 1, 2012 to March 31, 2013)

		Yen (millions)																Yen
For the six months ending September 30, 2012
		Net sales				Operating income				Income before income taxes				Net income attributable to Makita Corporation				Earning per share (Basic) Net income attributable to Makita Corporation common shareholders
Outlook announced previously (A)			150,500				22,600				22,700				15,400				113.44
Revised forecast (B)			144,000				21,600				19,200				13,400				98.71
Change (B-A)			(6,500	)			(1,000	)			(3,500	)			(2,000	)			—
Percentage revision			(4.3%	)			(4.4%	)			(15.4%	)			(13.0%	)			—
Actual results for the previous period ended September 30, 2011			153,036				26,953				24,514				17,104				124.16

 

		Yen (millions)																Yen
For the year ending March 31, 2013
		Net sales				Operating income				Income before income taxes				Net income attributable to Makita Corporation				Earning per share (Basic) Net income attributable to Makita Corporation common shareholders
Outlook announced previously (A)			301,500				44,000				44,200				30,000				220.99
Revised forecast (B)			280,000				38,000				35,000				24,000				176.80
Change (B-A)			(21,500	)			(6,000	)			(9,200	)			(6,000	)			—
Percentage revision			(7.1%	)			(13.6%	)			(20.8%	)			(20.0%	)			—
Actual results for the previous period ended March 31, 2012			295,711				48,516				46,963				32,497				236.78

The above forecast is based on the assumption of exchange rates of 78 yen to the U.S. dollar and 93 yen to the euro for the nine months period ending March 31, 2013.

(Reference) Our previous exchange rates that we announced on April 27, 2012 were 81 yen to the U.S. dollar and 107 yen to the euro.

The above forecast is based on information as available at the present time, and includes potential risks and uncertainties. As a consequence of the factors above and other, actual results may vary from the forecast provided above.

 

		4
English translation of “KESSAN TANSHIN” originally issued in Japanese

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4. Other

(1)	Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes in scope of consolidation during the quarter): None

 

(2)	Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements:

With regard to the income tax expenses, the Company computes interim income tax expense by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes for the reporting period.

 

(3)	Changes in accounting principles, procedures and presentations:

In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-05, Comprehensive Income (Accounting Standards Codification (ASC) Topic 220): Presentation of Comprehensive Income. ASU2011-05 requires an entity to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. The Company adopted ASU2011-05 for the three months ended in June 30, 2012. This adoption did not have an impact on the Company’s financial position and results of operations.

 

		5
English translation of “KESSAN TANSHIN” originally issued in Japanese

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5. Consolidated Financial Statements (Unaudited)

(1) Consolidated Balance Sheets

		Yen (millions)
		As of March 31, 2012								As of June 30, 2012
		Composition ratio								Composition ratio
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			44,812								42,936
Time deposits			13,504								8,936
Short-term investments			25,125								21,779
Trade receivables-
Notes			1,769								1,988
Accounts			48,445								45,175
Less- Allowance for doubtful receivables			(753	)							(690	)
Inventories			129,571								119,833
Deferred income taxes			5,898								5,341
Prepaid expenses and other current assets			8,392								8,601
Total current assets			276,763				72.2%				253,899				71.1%
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			20,498								20,129
Buildings and improvements			73,332								74,252
Machinery and equipment			75,460								74,175
Construction in progress			6,594								4,138
			175,884								172,694
Less- Accumulated depreciation			(98,146	)							(97,380	)
Total net property, plant and equipment			77,738				20.3%				75,314				21.1%
INVESTMENTS AND OTHER ASSETS:
Investments			19,154								17,663
Goodwill			721								721
Other intangible assets, net			4,515								4,485
Deferred income taxes			853								1,031
Other assets			3,512								4,058
Total investments and other assets			28,755				7.5%				27,958				7.8%
Total assets			383,256				100.0%				357,171				100.0%

 

		6
English translation of “KESSAN TANSHIN” originally issued in Japanese

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		Yen (millions)
		As of March 31, 2012												As of June 30, 2012
						Composition ratio								Composition ratio
LIABILITIES
CURRENT LIABILITIES:
Short-term borrowings							2,351												2,009
Trade notes and accounts payable							21,822												17,965
Other payables							4,313												5,063
Accrued expenses							6,314												4,916
Accrued payroll							7,803												5,732
Income taxes payable							5,293												2,123
Deferred income taxes							125												96
Other current liabilities							5,697												5,827
Total current liabilities							53,718				14.0%								43,731				12.3%
LONG-TERM LIABILITIES:
Long-term indebtedness							12												10
Accrued retirement and termination benefits							3,027												2,845
Deferred income taxes							130												117
Other liabilities							2,591												2,530
Total long-term liabilities							5,760				1.5%								5,502				1.5%
Total liabilities							59,478				15.5%								49,233				13.8%
EQUITY
MAKITA CORPORATION SHAREHOLDERS’
EQUITY:
Common stock							23,805												23,805
Additional paid-in capital							45,421												45,421
Legal reserve							5,669												5,669
Retained earnings							316,937												316,190
Accumulated other comprehensive income (loss)							(59,066	)											(73,936	)
Treasury stock, at cost							(11,513	)											(11,514	)
Total Makita Corporation shareholders’ equity							321,253				83.8%								305,635				85.6%
NONCONTROLLING INTEREST							2,525				0.7%								2,303				0.6%
Total equity							323,778				84.5%								307,938				86.2%
Total liabilities and equity							383,256				100.0%								357,171				100.0%

 

		As of March 31, 2012				As of June 30, 2012
Total number of shares authorized			496,000,000				496,000,000
Number of shares issued			140,008,760				140,008,760
Number of shares issued (excluding treasury stock)			137,750,518				135,750,219
Number of treasury stock			4,258,242				4,258,541

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

      Consolidated Statements of Income

 

		Yen (millions)
		For the three months ended June 30, 2011								For the three months ended June 30, 2012
		Composition ratio								Composition ratio
NET SALES			76,078				100.0%				74,942				100.0%
Cost of sales			45,922				60.4%				46,034				61.4%
GROSS PROFIT			30,156				39.6%				28,908				38.6%
Selling, general, administrative and others, net			17,145				22.5%				16,929				22.6%
OPERATING INCOME			13,011				17.1%				11,979				16.0%
OTHER INCOME (EXPENSES):
Interest and dividend income			436								437
Interest expense			(21	)							(83	)
Exchange gains (losses) on foreign currency transactions, net			64								(2,176	)
Realized gains (losses) on securities, net			(41	)							(4	)
Total			438				0.6%				(1,826	)			(2.5)%
INCOME BEFORE INCOME TAXES			13,449				17.7%				10,153				13.5%
PROVISION FOR INCOME TAXES:
Current			2,850								2,560
Deferred			1,039								586
Total			3,889				5.1%				3,146				4.2%
NET INCOME			9,560				12.6%				7,007				9.3%
Less: Net income attributable to the noncontrolling interest			(104	)			(0.2)%				(16	)			(0.0)%
NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION			9,456				12.4%				6,991				9.3%

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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Consolidated Statements of Comprehensive Income

 

		Yen (millions)
		For the three months ended June 30, 2011				For the three months ended June 30, 2012
NET INCOME			9,560				7,007
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment			(1,825	)			(14,267	)
Unrealized holding gains (losses) on available-for- sale securities			(152	)			(910	)
Pension liability adjustment			33				69
Total			(1,944	)			(15,108	)
COMPREHENSIVE INCOME (LOSS)			7,616				(8,101	)
Less: Comprehensive income attributable to the non-controlling interest			83				(222	)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO MAKITA CORPORATION			7,533				(7,879	)

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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(3) Condensed Consolidated Statements of Cash Flows

		Yen (millions)
		For the three months ended June 30, 2011						For the three months ended June 30, 2012
Net cash used in operating activities			(4,277	)					(108	)
Net cash provided by investing activities			11,208						5,086
Net cash used in financing activities			(4,592	)					(7,142	)
Effect of exchange rate changes on cash and cash equivalents			(829	)					288
Net change in cash and cash equivalents			1,510						(1,876	)
Cash and cash equivalents, beginning of period			51,833						44,812
Cash and cash equivalents, end of period			53,343						42,936

(4) Note on the preconditions for a going concern: None

(5) Condensed Operating Segment Information

		Yen (millions)
		For the three months ended June 30, 2011
		Japan				Europe				North America				Asia				Other				Total				Elimi- nations				Consoli- dated
Sales:
(1) External customers			16,507				32,601				9,977				3,728				13,265				76,078				—				76,078
(2) Inter-segment			13,664				786				905				30,263				228				45,846				(45,846	)			—
Total			30,171				33,387				10,882				33,991				13,493				121,924				(45,846	)			76,078
Operating expenses			26,259				29,535				10,208				30,099				11,540				107,641				(44,574	)			63,067
Operating income			3,912				3,852				674				3,892				1,953				14,283				(1,272	)			13,011

 

		Yen (millions)
		For the three months ended June 30, 2012
		Japan				Europe				North America				Asia				Other				Total				Elimi- nations				Consoli- dated
Sales:
(1) External customers			18,506				30,808				9,600				3,314				12,714				74,942				—				74,942
(2) Inter-segment			10,824				1,008				620				26,927				14				39,393				(39,393	)			—
Total			29,330				31,816				10,220				30,241				12,728				114,335				(39,393	)			74,942
Operating expenses			26,218				28,575				9,701				26,752				10,955				102,201				(39,238	)			62,963
Operating income			3,112				3,241				519				3,489				1,773				12,134				(155	)			11,979

(6) Note in case there is any significant change in the shareholders’ equity: None

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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SUPPORT DOCUMENTATION (CONSOLIDATED)

1. Consolidated Financial Results and Forecast

										Yen (millions)
										For the three months ended June 30, 2011								For the three months ended June 30, 2012
											(%)								(%)
Net sales											76,078				17.4				74,942				(1.5	)
Domestic											11,708				14.8				13,059				11.5
Overseas											64,370				17.8				61,883				(3.9	)
Operating income											13,011				28.4				11,979				(7.9	)
Income before income taxes											13,449				43.2				10,153				(24.5	)
Net income attributable to Makita Corporation											9,456				56.4				6,991				(26.1	)
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders (Yen)											68.64								51.50
Number of employees											11,856								12,501
		Yen (millions)
		For the year ended March 31, 2012								For the six months ending September 30, 2012 (Forecast)								For the year ending March 31, 2013 (Forecast)
			(%)								(%)								(%)
Net sales			295,711				8.5				144,000				(5.9	)			280,000				(5.3	)
Domestic			53,175				15.4				26,500				4.9				54,700				2.9
Overseas			242,536				7.0				117,600				(8.0	)			225,300				(7.1	)
Operating income			48,516				15.8				21,600				(19.9	)			38,000				(21.7	)
Income before income taxes			46,963				9.9				19,200				(21.7	)			35,000				(25.5	)
Net income attributable to Makita Corporation			32,497				8.7				13,400				(21.7	)			24,000				(26.1	)
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders (Yen)			236.78								98.71								176.80
Number of employees			12,563								—								—

Notes:

1.	The table above shows the changes in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income attributable to Makita Corporation against the corresponding period of the previous year.

2.	Please refer to page 4 for the qualitative information on consolidated financial forecast for the six months and fiscal year 2013.

 

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English translation of “KESSAN TANSHIN” originally issued in Japanese

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2. Consolidated Net Sales by Geographic Area

		Yen (millions)
		For the three months ended June 30, 2011								For the three months ended June 30, 2012								For the year ended March 31, 2012
		(%)								(%)								(%)
Japan			11,708				14.8				13,059				11.5				53,175				15.4
Europe			32,665				18.3				30,238				(7.4	)			123,251				6.3
North America			9,816				6.4				9,668				(1.5	)			37,475				1.0
Asia			7,249				36.4				7,451				2.8				26,013				12.7
Other regions			14,640				17.5				14,526				(0.8	)			55,797				10.7
Central and South America			6,073				38.9				5,056				(16.7	)			23,370				15.2
Oceania			4,734				21.5				4,674				(1.3	)			17,780				15.6
The Middle East and Africa			3,833				(8.5	)			4,796				25.1				14,647				(0.5	)
Total			76,078				17.4				74,942				(1.5	)			295,711				8.5

Note:

The table above sets forth Makita's consolidated net sales by geographic area based on the customer’s location for the periods presented. Accordingly, it differs from operating segment information on page 10. The table above shows the changes in the percentage ratio of Net sales against the corresponding period of the previous year.

3. Exchange Rates

		Yen
		For the three months ended June 30, 2011				For the three months ended June 30, 2012				For the year ended March 31, 2012				For the six months ending September  30, 2012 (Forecast)		For the year ending March 31, 2013 (Forecast)
Yen/U.S. Dollar		81.71				80.18				79.06				79		79
Yen/Euro		117.38				102.84				109.00				98		95
4. Production Ratio (unit basis)
										For the three months ended June 30, 2011				For  the three months ended June 30, 2012		For the year  ended March 31, 2012
										Composition ratio				Composition ratio		Composition ratio
Domestic										12.9%				11.2%		12.2%
Overseas										87.1%				88.8%		87.8%
5. Consolidated Capital Expenditures, Depreciation and Amortization, and R&D cost
		Yen (millions)
						For the three months ended June  30, 2011				For the three months  ended June 30, 2012				For the year ended March 31, 2012		For the year ending March 31, 2013 (Forecast)
Capital expenditures						2,530				2,200				13,481		14,000
Depreciation and amortization						1,715				1,754				7,237		7,800
R&D cost						1,935				2,048				7,603		8,500

 

		12
English translation of “KESSAN TANSHIN” originally issued in Japanese