Aida Engineering, Ltd. Quarterly Flash Report (Consolidated Basis) Results for nine months ended December 31, 2006

Transcription

1 Aida Engineering, Ltd. Quarterly Flash Report (Consolidated Basis) Results for nine months ended December 31, 2006 Stock listing: Tokyo Stock Exchange Code number: 6118 URL Representative: Kimikazu Aida, President Inquiries: Eiji Takei, Operating officer, division manager of business projection and administration headquarters Telephone: January 30, Items Related to Creation of This Report (1)Adoption of simplified accounting practices: Applicable (Datails) Accounting methods for taxation, etc.: Tax-effect accounting is applied to certain items according to convention (2) Changes in accounting methods and methods used in most recent fiscal years: Not applicable (3) Additions to and deletions from consolidated subsidiaries and affiliates: Applicable (Datails) Consolidated: Additions: None, Deletions: 1 Equity method: Additions: None, Deletions: None 2. Consolidated Financial Results of Nine Months Ended December 31, 2006 (April 1 Through December 31, 2006) (1) Progress of Business Performance Net Sales Operating Income Recurring Profit % % % December 31, , , , December 31, , , , Year ended March 31, ,303 3,412 3,698 % Yen Yen December 31, , December 31, , Year ended March 31, , Note: Changes in net sales, operating income, recurring profit and net income from the year earier period are shown in percentage [Qualitative data related to progress of business performance] Net sales for nine months ended December 31, 2006 rose 17.0% from the same period of the preceding year to 44,070 million, reflecting brisk sales the automotive industry. Operating income was 3,685 million (up 50.1%), recurring profit amounted 3,725 million (up 38.2%), and net income reached 2,147 million (up 58.4%) led by increases in sales and improvement of profitability. (2) Financial Position Net Income Net Income per Share Diluted Net Income per Share Total assets Shareholders' Equity Shareholders' Equity Ratio Shareholders' Equity per Share % Yen December 31, ,149 62, December 31, ,653 60, March 31, ,510 60, Number of shares outstanding at September 30, 2006: 71,581,161 shares, 2005: 72,263,290 shares, March 31, 2006:71,511,572 shares Cash Flows Cash Flows from Cash Flows from Cash Flows from Ending Cash and Operating Activities Investing Activities Financing Activities Cash Equivalents December 31, ,930 (76) (1,696) 10,303 December 31, 2005 (1,316) 758 (2,016) 10,269 Year ended March 31, (1,300) (2,078) 9,983 1

2 [Qualitative data on changes in finantial position] Changes in financial position from the previous fiscal year end are as follows. Total assets increased by 4,638 million to 88,149 million, mainly due to increases in inventories and acquisition of tangible fixed assets. Total liabilities increased by 2,692 million to 25,422 million, maily due to receiving advance payment. Total net assets increased by 1,946 million to 62,726 million, due to increases in retained earnings and foreign currency translation adjustment. [Qualitative data on status of cash flows] Cash and cash equivalents as of December 31, 2006 increased by 320million from the previous fiscal year end to 10,303 million. Net cash provided by operating activities amounted to 1,930 million, mainly owing to receiving down payment from customers. Net cash used in investing activities amounted to 76 million, mainly owing to acquisition of tangible fixed assets. Net cash used in financing activities amounted to 1,696 million, mainly owing to payments for loans and dividends. 3. Consolidated Earnings Forecasts for Fiscal Year Ending March 31, 2007(April 1, 2006 Through March 31, 2007) Details are set forth in the announcement of changes in earnings forecasts and dividends released on January 30, [Qualitative information related to earnings forecasts] The earnings forecasts presented in this report is prepared based on the information presently available. Actual results may materially differ from projected owing to various unforeseen factors. 2

3 Condensed Consolidated Balance Sheets December 31, 2005 December 31, 2006 Changes March 31, 2006 % % % % ASSETS Current assets 45, , , , Cash and Deposits 10,269 10, ,983 Notes and accounts receivable-trade 10,771 12,717 1,945 13,427 Maketable securities (538) Inventories 21,673 24,661 2,987 19,963 Deferred tax assets 894 1, ,100 Other current assets 1,505 2,517 1,011 1,660 Allowance for doubtful receivables (149) (96) 53 (139) Fixed assets 35, , , , Tangible fixed assets 19, , , , Intangible fixed assets (116) (14.8) Investments and other assets 14, , , Total assets 80, , , , LIABILITIES Current liabilities 18, , , , Notes and accounts payable-trade 4,867 6,018 1,150 5,870 Short-term loans payable 70 - (70) 1,000 Accounts payable-other 2,934 3, ,982 Advance received 6,069 8,415 2,345 6,286 Reserve for warranty claims 1,479 1, ,570 Accrued bonuses Other current liabilities 2,638 3, ,181 Long-term liabilities 1, , , Long-term loans payable 50 - (50) - Reserve for retirement allowance for employees Reserve for directors' retirement benefits Deferred tax liability 1, (119) 876 Other long-term liabilities Total liabilities 19, , , , SHAREHOLDERS' EQUITY Capital stock 7, , Capital reserve 13, , Retained earnings 40, , Unrealized holding gains on securities 1, , Foreign currency translation adjustment Treasury stock (2,744) (3.4) (3,677) (4.4) Total shareholders' equity 60, , Total liabilities and shareholders' equity 80, , NET ASSETS Shareholders' equity , Capital stock - 7, Capital reserve - 13, Retained earnings - 42, Treasurey stock - (3,648) - - Valuation and translation adjustment - - 3, Unrealized holding gains on - 1, securities Loss on deferred hedge - (64) - - Foreign currency translation - 1, Total adjustment net assets , Total liabilities and net assets ,

4 Condensed Consolidated Statements of Income Nine months ended December 31, 2005 Nine months ended December 31, 2006 Changes Year ended March 31, 2006 % % % % Net sales 37, , , , Cost of sales 28, , , , Gross profit 8, , , , Selling, general and administrative expenses 6, , , Operating income 2, , , , Non-operating income Interests received Others Non-operating expenses Interests paid Foreign currency exchange loss Others Recurring profit 2, , , , Extraordinary gain Gain on sale of fixed assets Others Extraordinary loss Loss on sale or disposal of fixed assets (15) 146 Loss on sale of investment securities Loss on impairment of fixed assets Others Income before income taxes 2, , , Income taxes and enterprise taxes 1, , , Adjustment for income taxes (198) (0.5) (341) (239.6) (332) (0.6) Net income 1, , ,

5 Consolidated Statements of Retained Earnings and Shareholder's Equity Nine months ended December 31, 2005 Year ended March 31, 2006 CAPITAL RESERVE Capital reserve at the beginning of the period 13,048 13,048 Decrease in capital reserve Issuance of new stock through the exercise of warrants Capital reserve at the end of the period 13,038 13,031 RETAINED EARNINGS Retained earnings at the beginning of the period 39,809 39,809 Increase in retained earnings Net income 1,356 1,356 1,792 1,792 Decrease in retained earnings Cash dividends Directors' bonus Retained earnings at the end of the period 40,364 40,800 5

6 Condensed Consolidated Statements of Shareholders' Equity Nine months ended December 31, 2006 Capital Stock Capital reserve Shareholders' equity Retained earnings Treasury stock Total Valuation and translation adjustment Net unrealized gains (losses) on securities Gain(loss) on deferred hedge Foreign currency translation adjustment Total net assets Balance as of March 31, 2006 Changes in nine months ended Decmber 31, ,831 13,031 40,800 (3,677) 57,984 1, ,780 Cash dividens* (715) (715) (715) Directors' bonus* (60) (60) (60) Net income 2,147 2,147 2,147 Acquisition of treasury stock Disposal of treasury stock Other net increase (decrease) Total changes in nine months ended December 31, 2006 Balance as of December 31, 2006 (26) (26) (26) (12) (10) (64) (12) 1, ,389 (10) (64) 632 1,946 7,831 13,018 42,172 (3,648) 59,373 1,906 (64) 1,511 62,726 *Resolution made at annual general stockholders meeting on June 29,

7 Condensed Consolidated Statements of Cash Flows Cash flows from operating activities Nine months ended December 31, 2005 Nine months ended December 31, 2006 Year ended March 31, 2006 Income before income taxes 2,556 3,419 3,168 Depreciation 1,248 1,384 1,814 Impairment loss on fixed assets (Gain) loss on sale of marketable securities Increase (decrease) in allowance for doubtful accounts 17 (66) (4) Increase (decrease) in accrued bonuses (261) (158) 84 Increase (decrease) in reserve for warranty claims Increase (decrease) in reserve for retirement allowance for employees Interests and dividends income (205) (271) (366) Interests expenses (Gain) loss on disposal of fixed assets (Gain) loss on sale of fixed assets (1) (26) 78 (Decrease) increase in notes and accounts receivable 2,300 2,795 (79) (Decrease) increase in inventories (5,532) (4,137) (3,763) Increase (decrease) in notes and accounts payable (454) 1, Decrease (increase) in other assets (504) (1,096) (689) Increase (decrease) in other liabilities Payment of directors' bonus (60) (60) (60) Others Total (346) 3,672 1,269 Proceeds from interests and dividends received Payment of interests (1) (8) (5) Payment of income tax (1,167) (2,016) (1,203) Net cash provided by (used in) operating activities (1,316) 1, Cash flows from investing activities Proceeds from sale of marketable securities Payments on purchase of tangible fixed assets (946) (2,023) (1,796) Proceeds from sale of tangible fixed assets Payments on purchase of investment securities (3,911) (300) (7,697) Proceeds from sale of investment securities 5,293 2,162 7,207 Payments for deposits in time deposits (4) (22) (4) Proceeds from withdrawal of time deposits Payments on purchase of investment securities due to changes in scope of consolidation (42) - (42) Others (6) (2) 16 Net cash provided by (used in) investing activities 758 (76) (1,300) Cash flows from financing activities Proceeds from short-term borrowings 98-1,106 Repayment of short-term borrowings (157) (1,000) (235) Proceeds from long-term borrowings Repayment of long-term borrowings (152) - (202) Proceeds from minority shareholders for issuance of stock Payments on purchase of trasury stock (1,252) (26) (2,318) Proceeds from sale of treasury stock Dividends paid by the Company (738) (713) (739) Net cash provided by (used in) financing activities (2,016) (1,696) (2,078) Effect of exchange rate changes on cash and cash equivalents Net increase(decrease) in cash and cash equivalents (2,150) 320 (2,437) Cash and cash equivalents at the beginning of the year 12,420 9,983 12,420 Cash and cash equivalents at the end of the year 10,269 10,303 9,983 7

8 SEGMENT INFORMATION (1) Information by Business Segment Aida Engineering and its consolidated subsidiaries are engaged in manufacturing and selling press machines and auxiliary equipments. Since this business accounted for over 90% of total sales and operating income in all segments in six months ended December 31, 2005 and 2006, and year ended March 31, 2006, segment breakdowns by business lines have been omitted. (2) Information by Geographical Segment Nine months ended December 31, 2005 Net sales and income: Eliminations Japan Asia The Americas Europe Total or Consolidated Companywide 1. Sales to outside customers 22,878 6,012 5,082 3,689 37,663-37, Inter-segment sales 6, ,060 8,693 (8,693) - Total Sales 29,413 6,831 5,361 4,750 46,356 (8,693) 37,663 Operating expenses 27,076 6,055 5,641 5,196 43,970 (8,762) 35,207 Operating income(loss) 2, (280) (446) 2, ,455 Nine moths ended December 31, 2006 Eliminations Japan Asia The Americas Europe Total or Consolidated Companywide Net sales and income: 1. Sales to outside customers 25,811 7,451 4,612 6,194 44,070-44, Inter-segment sales 7, ,028 (9,028) - Total Sales 33,141 8,358 5,017 6,580 53,098 (9,028) 44,070 Operating expenses 29,854 7,487 5,383 6,557 49,283 (8,898) 40,385 Operating income(loss) 3, (366) 22 3,814 (129) 3,685 Year ended March 31, 2006 Eliminations Japan Asia The Americas Europe Total or Consolidated Companywide Net sales and income: 1. Sales to outside customers 32,404 8,828 8,352 4,717 54,303-54, Inter-segment sales 10,226 1, ,410 13,479 (13,479) - Total Sales 42,630 9,938 9,084 6,128 67,782 (13,479) 54,303 Operating expenses 39,223 8,925 9,247 6,864 64,261 (13,370) 50,891 Operating income(loss) 3,407 1,013 (163) (736) 3,520 (108) 3,412 (Notes) 1. Segmentation of countries and regions is based on geographical proximity. 2. Major countries and regions in segments outside Japan (1) Asia China/Hong Kong, Singapore, Malaysia, Thailand, Indonesia, South Korea (2) The Americas United States, Canada, Brasil (3) Europe Italy, France, Germany, United Kingdom 3. Among operating expenses, there are no unalocatable operating expenses in the Eliminations and Companywide item. 8

9 (3) Overseas sales Nine months ended December 31,2005 Asia The Americas Europe Others Total Overseas sales 7,375 5,837 3, ,760 Consolidated net sales 37,663 Overseas sales to consolidated net sales ratio (%) 19.6% 15.5% 9.4% 0.0% 44.5% Nine months ended December 31,2006 Asia The Americas Europe Others Total Overseas sales 10,120 4,735 6, ,234 Consolidated net sales 44,070 Overseas sales to consolidated net sales ratio (%) 23.0% 10.7% 13.7% 0.7% 48.2% Year ended March 31, 2006 Asia The Americas Europe Others Total Overseas sales 10,599 8,992 5, ,956 Consolidated net sales 54,303 Overseas sales to consolidated net sales ratio (%) 19.5% 16.6% 9.8% 0.1% 46.0% (Notes) 1. Segmentation of countries and regions is based on geographical proximity. 2. Major countries and regions in segments outside Japan (1) Asia China, Thailand, Malaysia, Indonesia, South Korea, India (2) The Americas United States, Canada, Mexico, Brasil (3) Europe Italy, Germany, Czech Republic, Russia, Turkey, France (4) Others Australia 3. Overseas sales are sales by the Company and its consolidated subsidiaries in countries and regions outside Japan. 9

10 STATUS OF PRODUCTION, ORDERS, AND SALES (1) Production Volume Nine months ended Nine months ended Year ended December 31, 2005 December 31, 2006 March 31, 2006 Press machines 32,074 40,312 45,585 Services Other Total 32,174 40,312 45,773 (2) Orders receipt and backlog Nine months ended Nine months ended Year ended December 31, 2005 December 31, 2006 March 31, 2006 Order Press machines 42,642 45,693 53,949 Services 6,501 7,186 8,677 Other Total 49,288 52,924 62,838 Backlog Press machines 41,355 47,119 38,265 Services Other Total 41,355 47,119 38,265 (3) Sales Nine months ended Nine months ended Year ended December 31, 2005 December 31, 2006 March 31, 2006 Press machines 31,017 36,839 45,414 Services 6,501 7,186 8,677 Other Total 37,663 44,070 54,303 10

11 Aida Engineering, Ltd. Quarterly Flash Report (Non-Consolidated Basis) Results for nine months ended December 31, 2006 Stock listing: Tokyo Stock Exchange Code number: 6118 URL Representative: Kimikazu Aida, President Inquiries: Eiji Takei, Operating officer, division manager of business projection and administration headquarters Telephone: January 30, Items Related to Creation of This Report (1)Adoption of simplified accounting practices: Applicable (Datails) Accounting methods for taxation, etc.: Tax-effect accounting is applied to certain items according to convention (2) Changes in accounting methods and methods used in most recent fiscal years: Not applicable 2. Non-Consolidated Financial Results of Nine Months Ended December 31, 2006 (April 1 Through December 31, 2006) (1) Progress of Business Performance Net Sales Operating Income Recurring Profit % % % December 31, , , , December 31, , , , Year ended March 31, ,580 3,169 3,366 % Yen Yen December 31, , December 31, , Year ended March 31, , Note: Changes in net sales, operating income, recurring profit and net income from the year earier period are shown in percentage (2) Financial Position Net Income Net Income per Share Diluted Net Income per Share Total assets Shareholders' Equity Shareholders' Equity Ratio Shareholders' Equity per Share % Yen December 31, ,567 59, December 31, ,634 59, March 31, ,641 58, Non-Consolidated Earnings Forecasts for Fiscal Year Ending March 31, 2007 (April 1, 2006 Through March 31, 2007) Details are set forth in the announcement of changes in earnings forecasts and dividends released on January 30, [Qualitative information related to earnings forecasts] The earnings forecasts presented in this report is prepared based on the information presently available. Actual results may materially differ from projected owing to various unforeseen factors. 11

12 Condensed Non-Consolidated Balance Sheets December 31, 2005 December 31, 2006 Changes March 31, 2006 % % % % ASSETS Current assets 28, , , , Cash and Deposits 1,767 1,558 (208) 1,206 Notes and accounts receivable-trade 10,183 12,508 2,325 12,098 Maketable securities (531) - Inventories 13,834 13, ,089 Deferred tax assets 727 1, Other current assets 1,868 2, ,138 Allowance for doubtful receivables (1) (1) 0 (1) Fixed assets 42, , (485) (1.1) 44, Tangible fixed assets 13, , (528) (3.9) 13, Intangible fixed assets Investments and other assets 28, , (117) (0.4) 30, Total assets 71, , , , LIABILITIES Current liabilities 11, , , , Notes and accounts payable-trade 3,954 3,569 (384) 3,682 Short-term loans payable ,000 Accounts payable-other 3,092 4,790 1,698 3,829 Advance received 1,996 1,968 (27) 1,623 Reserve for warranty claims 549 1, Accrued bonuses Other current liabilities 1,480 1, ,691 Long-term liabilities 1, , , Reserve for directors' retirement benefits Deferred tax liability (98) 810 Other long-term liabilities Total liabilities 12, , , , SHAREHOLDERS' EQUITY Capital stock 7, , Capital reserve 13, , Retained earnings 39, , Unrealized holding gains on securities 1, , Treasury stock (2,744) (3.8) (3,677) (5.1) Total shareholders' equity 59, , Total liabilities and shareholders' equity 71, ,

13 December 31, 2005 December 31, 2006 Changes March 31, 2006 % % % % NET ASSETS Shareholders' equity , Capital stock - - 7, Capital reserve , Capital reserve - 12, Other capital reserve Retained earnings , Retained earnings - 1, Other retained earnings - 38, Reserve for dividends - 1, Reserve for research and development Reserve for foreign exchange fluctuation Reserve for cancellation of stock Reserve for advanced depreciation of replaced property - 5, , , , General reserve - 20, Unappropriated retained earnings Treasurey stock ,587 (3,648) (5.0) Valuation and translation adjustment - - 1, Unrealized holding gains on - - 1, securities Deferred hedge - - (98) (0.1) Total net assets , Total liabilities and net assets ,

14 Condensed Non-Consolidated Statements of Income Nine months ended December 31, 2005 Nine months ended December 31, 2006 Changes Year ended March 31, 2006 % % % % Net sales 29, , , , Cost of sales 23, , , , Gross profit 5, , , Selling, general and administrative expenses 3, , , Operating income 2, , , Non-operating income (85) (24.6) Interests and dividend income (84) 330 Others (1) 208 Non-operating expenses Expenses related to leased assets (6) 210 Others Recurring profit 2, , , Extraordinary gain Gain on sale of fixed assets Others Extraordinary loss , Loss on sale and disposal of fixed assets (12) 145 Loss on sale of investment securities Loss on impairment of fixed assets Loss from valuation of investment securities in subsidiaries Loss from liquidation of subsidiaries Others Income before income taxes 2, , (37) (1.5) 2, Income taxes and enterprise taxes , , Adjustment for income taxes (130) (0.4) (325) (166.5) (223) (0.5) Net income 1, , , Retained earnings at the beginning of year Unappropriated retained earnings at the end of period 1,508 1,622 14

15 Non-Consolidated Statements of Shareholders' Equity Nine months ended December 31, 2006 Shareholders' equity Valuation and translation adjustment Capital Stock Capital reserve Capital reserve Other capital reserve Retained earnings Retained earnings Other retained earnings Treasury stock Total Net unrealized gains (losses) on securities Gain(loss) on deferred hedge Total net assets Balance as of March 31, ,831 12, ,957 37,426 (3,677) 56,578 1,909-58,487 Changes in nine months ended December 31, 2006 Reversal of reserve for advanced depreciation replaced property* Reversal of reserve for advanced depreciation replaced property Addition to general reserve* Cash dividens* (715) (715) (715) Directors' bonus* (60) (60) (60) Net income 1,483 1,483 1,483 Acquisition of treasury stock - (26) (26) (26) Disposal of treasury stock (12) Other net increase (decrease) - - (4) (98) (102) Total changes in nine months ended December 31, (12) (4) (98) 622 Balance as of December 31, ,831 12, ,957 38,135 (3,648) 57,304 1,904 (98) 59,110 *Breakdown of other retained earnings Reserve for dividends Reserve for research and development Reserve for foreign exchange fluctuations Reserve for cancellation of stock Reserve for advanced depreciation of replaced property General reserve Unappropri -ated retained earnings Total Balance as of March 31, ,658 5,400 2,000 5,500 1,284 19,961 1,622 37,426 Changes in six months ended September 30, 2006 Reversal of reserve for advanced depreciation replaced property* (33) 33 - Reversal of reserve for advanced depreciation replaced property (23) 23 - Addition to general reserve 800 (800) - Dividends paid (715) (715) Directors' bonus (60) (60) Net income 1,483 1,483 Repurchase of treasury stock - Disposal of treasury stock - Other net increase (decrease) - Total changes in six months ended September 30, (56) 800 (34) 708 Balance as of September 30, ,658 5,400 2,000 5,500 1,227 20,761 1,587 38,135 *Resolution made at annual general stockholders meeting on June 29,