Furusato Announces Financial Results for the First Quarter Ended June 30, 2018[Japan GAAP]

Transcription

1 FOR IMMEDIATE RELEASE: Furusato Announces Financial Results for the First Quarter Ended June 30, 2018[Japan GAAP] Osaka, Japan, July 30, 2018 Furusato Industries, Ltd. announced its consolidated financial results for the three months ended June 30, 2018, the first quarter of the year ending March 31, All financial information has been prepared in accordance with accounting principles generally accepted in Japan. The following summary of the financial results is unaudited and for reference only. Securities Traded : The First Section of the Tokyo Stock Exchange Securities Code : 8087 CONSOLIDATED FINANCIAL RESULTS 1. Business Results All figures are rounded down to the nearest million yen. Three Months Ended June 30, 2018 Three Months Ended June 30, 2017 Operating Results: (Millions of Yen) (Millions of Yen) Net Sales \ 24,665 \ 21,921 Operating Income Ordinary Income Net Income Attributable to Owners of Parent Per Share Data: (Yen) (Yen) Net Income Attributable to Owners of Parent \ \ As of June 30, 2018 As of March 31, 2018 Financial Position: (Millions of Yen) (Millions of Yen) Total Assets \ 61,915 \ 63,283 Net Assets 38,722 39,085 Net Assets to Total Assets 62.5% 61.8% Per Share Data: (Yen) (Yen) Net Assets \ 2, \ 2, Notes: 1. Comprehensive income Three months ended June 30, million, (27.2)% Three months ended June 30, million, 124.7% 2. Changes in major subsidiaries during the period under review (Change in specific subsidiaries due to changes in the scope of consolidation): No 3. Adoption of special accounting methods for the preparation of quarterly consolidated financial statements: No 4. Changes in accounting principles, changes in accounting estimates, and retrospective restatements 1) Changes in accounting principles resulting from revisions in accounting standards: No 2) Changes other than those in 1) above: No 3) Changes in accounting estimates: No 1/8 CONSOLIDATED

2 4) Retrospective restatements: No 5. Number of shares issued and outstanding (common stock) 1) Number of shares issued and outstanding at the end of period (including treasury stock) June 30, 2018: 14,574,366 shares March 31, 2018: 14,574,366 shares 2) Number of treasury stock at the end of period June 30, 2018: 77,422 shares March 31, 2018: 77,367 shares 3) Weighted average number of shares issued and outstanding for the period (consolidated, cumulative) June 30, 2018: 14,496,971 shares June 30, 2017: 14,497,334 shares FURUSATO INDUSTRIES 2. Dividends Dividends Per Share (Yen) 1Q 2Q 3Q Year-end Annual Fiscal Year Ended March 31, Fiscal Year Ending March 31, Fiscal Year Ending March 31, 2019 (Forecast) CONSOLIDATED EARNINGS FORECAST FOR FISCAL 2018, ENDING MARCH 31, 2019 Six Months Ending September 30, 2018 Year Ending March 31, 2019 Operating Results: (Millions of Yen) (Millions of Yen) Net Sales \ 48,600 \ 101,500 Operating Income 1,400 3,400 Ordinary Income 1,500 3,700 Net Income Attributable to Owners of Parent 950 2,400 Per Share Data: (Yen) (Yen) Net Income Attributable to Owners of Parent \ \ *The forecasts involve our management s assumptions, prospects and plans based on the information currently available. Actual results may differ materially from the expectations depending on various factors. 2/8 CONSOLIDATED

3 RESULTS OF OPERATIONS (THREE MONTHS ENDED JUNE 30, 2018) 1. Analysis of Operating Results (1) Overview of Results During the three months ended June 30, 2018, the Japanese economy continued its moderate recovery trend overall, while there was growing economic uncertainty due mainly to downside risks for the global economy like heightened tension from trade conflicts triggered by rising protectionism pressure. The capital investment increased moderately, and accordingly, the Statistics of Orders Received for Machine Tools recorded a double-digit year-over-year growth even though there were signs of a slowdown in growth. The Index of Industrial Production continued a year-over-year growth. Meanwhile, regarding the steel frame building construction, the floor area of new construction starts remained flat, reflecting a short of supply capacity. Under this environment, this fiscal year is the middle-year of the medium-term management plan, Design the Future 2020, which is a key point to achieve the target (net sales 108 billion, operating income 4 billion) in the year ending March 31, During the period under review, consolidated net sales increased by 12.5% year over year to 24,665 million due to sales growth in all segments, led by the Machine and Facility Segment. Gross profit increased by 13.2% year over year based on improved profitability, while selling, general and administrative expenses increased by 2.9% year over year due mainly to an increase in personnel expenses. Accordingly, operating income increased by 88.3% year over year to 674 million, and ordinary income increased by 81.8% year over year to 800 million. Consequently, net income attributable to owners of parent was 500 million, up 95.9% year over year. (2) Analysis of Results by Segment 1) Equipment and Tools Segment In the Equipment and Tools Segment, the Industrial Equipment Business and the Machine and Tools for Automotive Business recorded a double-digit year-over-year growth in sales, up 10.4% and 16.7%, respectively, due mainly to favorable demand showed in the Index of Industrial Production. Meanwhile, the Housing Equipment Business decreased by 2.0% year over year, negatively impacted by sluggish demand for newly-built houses and remodeling. Accordingly, overall net sales increased by 7.9% year over year to 12,100 million. Overall operating income was 234 million, up 79.1% year over year. 2) Machine and Facility Segment In the Machine and Facility Segment, there was no improvement in a delivery situation of machine tools, which resulted in a slowdown in orders received for machine tools. Regarding net sales by business, the Machine Tools Business increased by 31.9% year over year, and Factory Automation Business increased by 20.1% year over year. Accordingly, overall net sales increased 30.1% year over year to 4,666 million. Overall operating income was 57 million, up 235.6% year over year. 3) Construction and Piping Products Segment In the Construction and Piping Products Segment, the Steel Frame Building Supplies Business increased by 13.7% year over year, backed by favorable demand for steel frame buildings while the Piping Products Business increased by 1.4% year over year. Accordingly, net sales increased by 10.9% year over year to 7,898 million. Consequently, overall operating income was 351 million, up 56.6% year over year. (3) Earnings Forecast for fiscal 2018, ending March 31, 2019 The earnings forecast is unchanged from the forecast announced on May 7, /8 CONSOLIDATED

4 CONSOLIDATED BALANCE SHEETS (UNAUDITED) Assets Current assets: March 31, 2018 Thousands of Yen June 30, 2018 Cash and deposits \ 11,112,150 \ 11,176,888 Notes and accounts receivable-trade 24,810,510 23,369,016 Electronically recorded monetary claims-operating 3,196,343 3,476,490 Securities 200,000 - Merchandise and finished goods 3,737,181 3,901,736 Work in process 310, ,641 Raw materials and supplies 140, ,444 Other 778, ,394 Allowance for doubtful accounts (12,956) (9,783) Total current assets 44,272,565 43,137,829 Noncurrent assets: Property, plant and equipment: Buildings and structures, net 3,831,013 3,847,911 Machinery, equipment and vehicles, net 822, ,987 Land 7,203,691 7,203,691 Construction in progress 601, ,873 Other, net 171, ,670 Total property, plant and equipment 12,629,494 12,669,134 Intangible assets: Total intangible assets 204, ,846 Investments and other assets: Investment securities 4,430,343 4,092,770 Net defined benefit asset 770, ,915 Other 1,063,684 1,117,052 Allowance for doubtful accounts (87,888) (89,658) Total investments and other assets 6,176,708 5,900,079 Total noncurrent assets 19,010,810 18,778,061 Total assets \ 63,283,376 \ 61,915,890 Note: All figures are rounded down to the nearest thousand yen. 4/8 CONSOLIDATED

5 Liabilities Current liabilities: March 31, 2018 Thousands of Yen June 30, 2018 Notes and accounts payable-trade \ 18,317,154 \ 17,468,640 Electronically recorded obligations - operating 1,852,665 1,806,253 Current portion of long-term loans payable 100, ,000 Income taxes payable 642, ,203 Provision for bonuses 595, ,693 Provision for directors' bonuses 25,677 6,420 Provision for environmental measures 33,000 5,600 Provision for removal expenses of noncurrent assets 16,503 5,800 Other 1,555,501 1,613,526 Total current liabilities 23,138,404 22,271,137 Noncurrent liabilities: Long-term loans payable 125, ,000 Deferred tax liabilities 764, ,717 Net defined benefit liability 45,070 49,791 Other 124, ,476 Total noncurrent liabilities 1,059, ,984 Total liabilities 24,197,696 23,193,122 Net Assets Shareholders' equity: Capital stock 5,232,413 5,232,413 Capital surplus 5,997,217 5,997,217 Retained earnings 25,999,618 25,875,701 Treasury stock (83,785) (83,888) Total shareholders' equity 37,145,464 37,021,444 Accumulated other comprehensive income: Valuation difference on available-for-sale securities 1,784,457 1,551,580 Deferred gains or losses on hedges (495) 62 Remeasurements of defined benefit plans 156, ,680 Total accumulated other comprehensive income 1,940,216 1,701,323 Total net assets 39,085,680 38,722,768 Total liabilities and net assets \ 63,283,376 \ 61,915,890 Note: All figures are rounded down to the nearest thousand yen. 5/8 CONSOLIDATED

6 CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Thousands of Yen Three months ended June 30, 2017 Three months ended June 30, 2018 Net sales \ 21,921,987 \ 24,665,139 Cost of sales 18,925,133 21,274,136 Gross profit 2,996,854 3,391,002 Selling, general and administrative expenses 2,638,443 2,716,018 Operating income 358, ,983 Non-operating income: Interest income 1,165 1,498 Dividends income 26,887 28,201 Purchase discounts 125, ,183 Rent income 9,540 9,417 Other 3,872 36,032 Total non-operating income 167, ,334 Non-operating expenses: Interest expenses Sales discounts 73,280 75,659 Cost of lease revenue 310 1,143 Other 11,592 6,657 Total non-operating expenses 85,362 83,667 Ordinary income 440, ,650 Extraordinary income: Gain on sales of investment securities 7,142 - Total extraordinary income 7,142 - Extraordinary loss: Provision for removal expenses of noncurrent assets 28,000 - Total extraordinary loss 28,000 - Income before income taxes 419, ,650 Income taxes-current 245, ,184 Income taxes-deferred (81,617) (57,986) Total income taxes 164, ,198 Net income 255, ,452 Net income attributable to owners of parent \ 255,469 \ 500,452 Note: All figures are rounded down to the nearest thousand yen. 6/8 CONSOLIDATED

7 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) FURUSATO INDUSTRIES Thousands of Yen Three months ended June 30, 2017 Three months ended June 30, 2018 Net income \ 255,469 \ 500,452 Other comprehensive income: Valuation difference on available-for-sale securities 115,246 (232,876) Deferred gains or losses on hedges (523) 557 Remeasurements of defined benefit plans, net of tax (10,945) (6,574) Total other comprehensive income 103,777 (238,892) Comprehensive income: 359, ,559 Comprehensive income attributable to Comprehensive income attributable to owners of the parent 359, ,559 Comprehensive income attributable to non-controlling interests \ - \ - Note: All figures are rounded down to the nearest thousand yen. 7/8 CONSOLIDATED

8 SEGMENT INFORMATION 1. Three months ended June 30, 2017 (from April 1 to June 30, 2017) (1) Information on net sales and operating income (loss) by business segment reported Business segment reported Net sales To customers Intersegment Total (Thousands of Yen) Operating income Equipment and Tools \ 11,212,259 \ 243,430 \ 11,455,689 \ 130,874 Machine and Facility 3,586,719 82,138 3,668,857 17,214 Construction and Piping Products 7,123,008 1,897 7,124, ,636 Subtotal 21,921, ,465 22,249, ,724 Adjustment (*1) - (327,465) (327,465) (14,313) Total amounts on the consolidated statements of income (*2) \ 21,921,987 - \ 21,921,987 \ 358,410 Note: 1. Adjustment of operating income (loss), (14,313) thousand, incorporates elimination of intersegment transaction, (11,873) thousand, adjustment of inventory, (3,039) thousand, and adjustment of noncurrent assets, 598 thousand. 2. Operating income (loss) for segment is adjusted on operating income on the quarterly consolidated statements of income. 2. Three months ended June 30, 2018 (from April 1 to June 30, 2018) (1) Information on net sales and operating income (loss) by business segment reported Business segment reported Net sales To customers Intersegment Total (Thousands of Yen) Operating income Equipment and Tools \ 12,100,815 \ 260,084 \ 12,360,899 \ 234,331 Machine and Facility 4,666, ,643 4,804,729 57,772 Construction and Piping Products 7,898,237 3,444 7,901, ,684 Subtotal 24,665, ,171 25,067, ,788 Adjustment (*1) - (402,171) (402,171) 31,194 Total amounts on the consolidated statements of income (*2) \ 24,665,139 - \ 24,665,139 \ 674,983 Note: 1. Adjustment of operating income (loss), 31,194 thousand, incorporates elimination of intersegment transaction, 34,465 thousand, adjustment of inventory, (3,869) thousand, and adjustment of noncurrent assets, 598 thousand. 2. Operating income (loss) for segment is adjusted on operating income on the quarterly consolidated statements of income. 8/8 CONSOLIDATED