MAKITA CORPORATION
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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)


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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.

     
    MAKITA CORPORATION
   
    (Registrant)
     
     
  By: /s/ Masahiko Goto
   
    (Signature)         
Masahiko Goto
President         

Date: January 28, 2004

 


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(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)

 


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(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

1.   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)

2.   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.


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(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.


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(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 )
   
 
   
     
     
 


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(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 )
   
 
   
     
     
 


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(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 %
 
   
     
     
     
     
     
     
     
 


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SUPPORT DOCUMENTATION (CONSOLIDATION)

1.   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.


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2.   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 %

3.   Exchange rates
                         
            Yen
           
            For the   For the
            nine months ended     nine months ended
            December 31,   December 31,
            2002   2003
            (Results)   (Results)
           
 
Yen/U.S. Dollar
    122.92       115.09  
Yen/Euro
    118.76       132.20  
 
    Yen
   
    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)
   
 
 
Yen/U.S. Dollar
    121.98       118.07       112  
Yen/Euro
    120.88       133.51       132  

4.   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 %


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5.   Production ratio (unit basis)
                                 
            For the   For the   For the
            nine months ended   year ended   six months ended
            December 31,   March 31,   September 30,
            2003   2003   2003
            (Results)   (Results)   (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   For the   For the   For the
    nine months ended   year ended   six months ended   year ending
    December 31,   March 31,   September 30,   March 31,
    2003   2003   2003   2004
    (Results)   (Results)   (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   For the   For the
            nine months ended   year ended       six months ended
            December 31,   March 31,   September 30,
            2003   2003   2003
            (Results)   (Results)   (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 )


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