August 7, 2020 | ||
Summary of Consolidated Financial Results | ||
for the First Quarter of Fiscal Year Ending March 31, 2021 | ||
(Three Months Ended June 30, 2020) | ||
[Japanese GAAP] | ||
Company name: | IWAKI CO.,LTD. | Listing: Tokyo Stock Exchange, First Section |
Stock code: | 6237 | URL: https://www.iwakipumps.co.jp/ |
Representative: | Shigeru Fujinaka, President | |
Contact: | Makoto Inoue, Director, |
Senior General Manager of Business Management Head Office | Tel: (81)3-3254-2931 | |||||||||
Scheduled date of filing of Quarterly Report: | August 7, 2020 | |||||||||
Scheduled date of payment of dividend: | - | |||||||||
Preparation of supplementary materials for quarterly financial results: None | ||||||||||
Holding of quarterly financial results meeting: | None | |||||||||
(All amounts are rounded down to the nearest million yen) | ||||||||||
1. Consolidated Financial Results for the First Quarter Ended June 30, 2020 | ||||||||||
(April 1, 2020 - June 30, 2020) | ||||||||||
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Three months ended Jun. 30, 2020 | 6,736 | (0.7) | 295 | (12.9) | 413 | (8.9) | 626 | 52.8 | ||
Three months ended Jun. 30, 2019 | 6,782 | (6.5) | 338 | (45.2) | 454 | (38.9) | 410 | (16.5) |
Note: Comprehensive income (million yen) | Three months ended Jun. 30, 2020: | 540 | (up 114.4%) | |||||
Three months ended Jun. 30, 2019: | 252 | (down 13.3%) | ||||||
Net income per share | Diluted net income per | |||||||
share | ||||||||
Yen | Yen | |||||||
Three months ended Jun. 30, 2020 | 28.45 | - | ||||||
Three months ended Jun. 30, 2019 | 18.37 | - | ||||||
(2) Consolidated financial position | ||||||||
Total assets | Net assets | Capital adequacy ratio | ||||||
Million yen | Million yen | % | ||||||
As of Jun. 30, 2020 | 31,700 | 20,704 | 65.1 | |||||
As of Mar. 31, 2020 | 30,126 | 20,523 | 68.0 | |||||
Reference: Owner's equity (million yen) | As of Jun. 30, 2020: 20,650 | As of Mar. 31, 2020: 20,492 |
2. Dividends
Dividend per share | ||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | ||
Yen | Yen | Yen | Yen | Yen | ||
Fiscal year ended Mar. 31, 2020 | - | 13.00 | - | 17.50 | 30.50 | |
Fiscal year ending Mar. 31, 2021 | - | |||||
Fiscal year ending Mar. 31, 2021 (forecasts) | 8.00 | - | 13.00 | 21.00 |
Note: Revisions to the most recently announced dividend forecasts: None
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2021 (April 1, 2020 - March 31, 2021)
(Percentages represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Net income per | ||||||
owners of parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
First half | 13,341 | (5.3) | 441 | (57.6) | 637 | (48.8) | 670 | (34.5) | 30.45 | |
Full year | 28,280 | (1.2) | 1,332 | (37.0) | 1,739 | (32.6) | 1,537 | (27.6) | 69.79 |
Note: Revisions to the most recently announced consolidated earnings forecasts: None
* Notes
- Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
-
Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
Note: Please refer to page 8 "2. Quarterly Consolidated Financial Statements and Notes, (3) Notes to Quarterly Consolidated Financial Statements, Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements" for details. - Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | None |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Jun. 30, 2020: | 22,490,910 shares | As of Mar. 31, 2020: | 22,490,910 shares |
2) Number of treasury shares at the end of the period | |||
As of Jun. 30, 2020: | 471,151 shares | As of Mar. 31, 2020: | 465,389 shares |
3) Average number of shares outstanding during the period | |||
Three months ended Jun. 30, 2020: | 22,023,600 shares | Three months ended Jun. 30, 2019: | 22,318,362 shares |
- The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
-
Cautionary statement with respect to forward-looking statements Note concerning forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to th e Company's management at the time the materials were prepared, but are not promises by Iwaki regarding future performance. Actual results may differ materially from the forecasts.
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21 | ||
Contents of Attachments | ||
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 2 |
(3) | Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
Quarterly Consolidated Statement of Income | ||
For the Three-month Period | 6 | |
Quarterly Consolidated Statement of Comprehensive Income | ||
For the Three-month Period | 7 | |
(3) | Notes to Quarterly Consolidated Financial Statements | 8 |
Going Concern Assumption | 8 | |
Significant Changes in Shareholders' Equity | 8 | |
Changes in Consolidated Subsidiaries During the Period | 8 | |
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements | 8 | |
Segment Information | 8 |
1
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
During the first quarter of the fiscal year ending March 31, 2021, corporate earnings in Japan plummeted because of COVID-19 and capital expenditures were sluggish. There are expectations for the current challenging economic environment to begin to improve following the end of the state of emergency. However, the business climate remains unclear because of uncertainty about the outlook in Japan and overseas for the COVID-19 pandemic.
In Japan, Iwaki took many actions based on the core policy of "winning by improving customer satisfaction." Overseas, there were activities encompassing 21 affiliated companies in 15 countries to increase sales.
Manufacturing operations of the Iwaki Group have continued during the COVID-19 crisis in order to ensure that customers receive the products they require. Group companies are using teleworking, thorough workplace ventilation, social distancing and other measures to prevent the spread of COVID-19. This crisis has not significantly affected manufacturing and procurement activities thus far. But there are still restrictions in Japan and other countries on visiting customers for sales activities. The COVID-19 crisis has created additional demand in Japan involving disinfectant production and in China involving clinical testing equipment.
Due to these activities, sales were higher than one year earlier in the semiconductor/liquid crystal, medical equipment, water treatment and chemicals markets. Sales in the new energy market fell about 50% because of big downturns in Japan and Europe. Sales were lower in other market sectors as well mainly because of a decline in aquatic business sales in the United States. The aquatic business involves the use of mainly small fish (zebrafish, rice fish) as model organisms for biomedical and genome research as well as for toxicity bioassay tests and assessments, wastewater management and other purposes. The Iwaki aquatic system is easy to operate for raising and sustaining fish and other organisms required for these activities.
Sales in Japan decreased 1.0% from one year earlier to 3,970 million yen as a result of sluggish sales in the new energy market. COVID-19 had a big impact on sales in other countries. In Europe, sales were down 19.4% to 595 million yen because of weakness in all market sectors except water treatment and chemicals. In the United States, sales decreased 11.0% to 906 million yen as sales were lower in all market sectors except water treatment. In Asia, sales increased 14.3% to 590 million yen because of a recovery in the semiconductor/liquid crystal market in Taiwan and South Korea. Sales in China were up 59.5% to 447 million yen because sales increased sharply in the medical equipment market.
By product category, sales of mainline metering pumps remained steady but sales of magnetic drive pumps were weak. Sales of pneumatic drive pumps for the semiconductor/liquid crystal market were strong due to a resumption of capital expenditures for semiconductor-related equipment.
Consequently, consolidated net sales decreased 0.7% to 6,736 million yen.
Earnings were affected by lower sales and higher selling, general and administrative expenses. As a result, operating profit decreased 12.9% to 295 million yen and ordinary profit decreased 8.9% to 413 million yen. Due to extraordinary income for a gain resulting from the step acquisition of IWAKI Nordic A/S, profit attributable to owners of parent increased 52.8% to 626 million yen.
There is no business segment information because chemical pumps are the only business of the Iwaki Group.
(2) Explanation of Financial Position
Assets
The balance of current assets at the end of the first quarter of the current fiscal year was 22,389 million yen, up 853 million yen from the end of the previous fiscal year. This was mainly due to increases of 268 million yen in cash and deposits, 319 million yen in merchandise and finished goods and 149 million yen in raw materials and supplies. The balance of non-current assets was 9,310 million yen at the end of the first quarter of the current fiscal year, up 720 million yen from the end of the previous fiscal year. This was mainly because of an increase of 746 million yen in goodwill.
As a result, total assets increased 1,573 million yen from the end of the previous fiscal year to 31,700 million yen.
2
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
Liabilities
The balance of current liabilities at the end of the first quarter of the current fiscal year was 8,384 million yen, up 723 million yen from the end of the previous fiscal year. This was mainly due to increases of 334 million yen in notes and accounts payable-trade and 110 million yen in short-term borrowings. The balance of non-current liabilities was 2,610 million yen at the end of the first quarter of the current fiscal year, up 669 million yen from the end of the previous fiscal year. This was mainly due to an increase of 675 million yen in long-term borrowings.
As a result, total liabilities increased 1,392 million yen from the end of the previous fiscal year to 10,995 million yen.
Net assets
The balance of net assets at the end of the first quarter of the current fiscal year was 20,704 million yen, up 181 million yen from the end of the previous fiscal year. The main factors include an increase of 241 million yen in retained earnings.
Consequently, the capital adequacy ratio was 65.1% (68.0% at the end of the previous fiscal year).
(3) Explanation of Consolidated Earnings Forecasts and Other Forward -looking Statements
We maintain the first-half and full-year consolidated earnings forecasts that were disclosed in the press release concerning the consolidated earnings forecast and dividend forecast (J apanese version only) dated June 15, 2020.
3
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
2. Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheet
(Thousands of yen) | |||
FY3/20 | First quarter of FY3/21 | ||
(As of Mar. 31, 2020) | (As of Jun. 30, 2020) | ||
Assets | |||
Current assets | |||
Cash and deposits | 6,037,142 | 6,305,847 | |
Notes and accounts receivable -trade | 6,567,089 | 6,267,038 | |
Electronically recorded monetary claims-operating | 3,006,973 | 3,122,637 | |
Merchandise and finished goods | 2,274,529 | 2,593,860 | |
Work in process | 41,866 | 141,999 | |
Raw materials and supplies | 3,334,700 | 3,484,441 | |
Other | 297,927 | 499,340 | |
Allowance for doubtful accounts | (24,120) | (25,685) | |
Total current assets | |||
21,536,109 | 22,389,480 | ||
Non-current assets | |||
Property, plant and equipment | |||
Buildings and structures | 7,350,481 | 7,381,770 | |
Accumulated depreciation and impairment loss | (3,814,876) | (3,899,447) | |
Buildings and structures, net | |||
3,535,605 | 3,482,323 | ||
Machinery, equipment and vehicles | |||
2,821,272 | 2,881,352 | ||
Accumulated depreciation and impairment loss | (2,409,334) | (2,451,407) | |
Machinery, equipment and vehicles, net | |||
411,937 | 429,944 | ||
Tools, furniture and fixtures | |||
1,882,702 | 1,910,129 | ||
Accumulated depreciation and impairment loss | (1,557,037) | (1,598,128) | |
Tools, furniture and fixtures, net | |||
325,664 | 312,001 | ||
Land | |||
1,039,680 | 1,038,241 | ||
Leased assets | 282,368 | 297,711 | |
Accumulated depreciation | (138,730) | (153,808) | |
Leased assets, net | |||
143,637 | 143,902 | ||
Construction in progress | |||
129,925 | 213,630 | ||
Other | 30,117 | 30,764 | |
Accumulated depreciation | (22,400) | (22,572) | |
Other, net | |||
7,716 | 8,192 | ||
Total property, plant and equipment | |||
5,594,168 | 5,628,236 | ||
Intangible assets | |||
Goodwill | 1,764 | 748,182 | |
Trademark right | 46,116 | 42,924 | |
Other | 258,369 | 279,826 | |
Total intangible assets | |||
306,250 | 1,070,933 | ||
Investments and other assets | |||
Investment securities | 1,743,860 | 1,662,156 | |
Deferred tax assets | 669,176 | 665,380 | |
Other | 277,068 | 283,829 | |
Total investments and other assets | |||
2,690,105 | 2,611,366 | ||
Total non-current assets | |||
8,590,524 | 9,310,536 | ||
Total assets | |||
30,126,634 | 31,700,017 | ||
4
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
(Thousands of yen)
FY3/20 | First quarter of FY3/21 | ||
(As of Mar. 31, 2020) | (As of Jun. 30, 2020) | ||
Liabilities | |||
Current liabilities | |||
Notes and accounts payable-trade | 4,681,495 | 5,015,707 | |
Short-term borrowings | 768,050 | 878,301 | |
Lease obligations | 55,903 | 56,150 | |
Income taxes payable | 103,628 | 135,380 | |
Provision for bonuses | 725,113 | 390,394 | |
Provision for bonuses for directors (and other officers) | 43,080 | 19,796 | |
Provision for product warranties | 71,156 | 68,303 | |
Provision for loss on building demolition cost | 11,400 | 11,400 | |
Other | 1,201,622 | 1,809,137 | |
Total current liabilities | |||
7,661,449 | 8,384,571 | ||
Non-current liabilities | |||
Long-term borrowings | - | 675,000 | |
Lease obligations | 105,203 | 106,833 | |
Provision for retirement benefits for directors (and other | 51,687 | 51,687 | |
officers) | |||
Retirement benefit liability | 912,345 | 906,377 | |
Asset retirement obligations | 185,555 | 185,985 | |
Other | 686,570 | 684,578 | |
Total non-current liabilities | |||
1,941,361 | 2,610,461 | ||
Total liabilities | |||
9,602,811 | 10,995,033 | ||
Net assets | |||
Shareholders' equity | |||
Share capital | 1,044,691 | 1,044,691 | |
Capital surplus | 675,803 | 675,803 | |
Retained earnings | 19,143,574 | 19,384,623 | |
Treasury shares | (475,730) | (475,730) | |
Total shareholders' equity | 20,388,338 | 20,629,388 | |
Accumulated other comprehensive income | |||
Valuation difference on available-for-sale securities | 88,669 | 90,819 | |
Foreign currency translation adjustment | 150,937 | 63,920 | |
Remeasurements of defined benefit plans | (135,633) | (133,602) | |
Total accumulated other comprehensive income | 103,974 | 21,137 | |
Non-controlling interests | 31,510 | 54,458 | |
Total net assets | 20,523,823 | 20,704,983 | |
Total liabilities and net assets | |||
30,126,634 | 31,700,017 | ||
5
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
-
Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statement of Income
(For the Three-month Period)
(Thousands of yen) | |||
First three months of FY3/20 | First three months of FY3/21 | ||
(Apr. 1, 2019 - Jun. 30, 2019) | (Apr. 1, 2020 - Jun. 30, 2020) | ||
Net sales | 6,782,927 | 6,736,048 | |
Cost of sales | 4,498,678 | 4,466,445 | |
Gross profit | 2,284,249 | 2,269,602 | |
Selling, general and administrative expenses | 1,945,396 | 1,974,495 | |
Operating profit | 338,853 | 295,107 | |
Non-operating income | |||
Interest income | 4,290 | 652 | |
Dividend income | 16,499 | 11,580 | |
Share of profit of entities accounted for using equity | 113,932 | 153,473 | |
method | |||
Other | 10,499 | 13,119 | |
Total non-operating income | 145,222 | 178,825 | |
Non-operating expenses | |||
Interest expenses | 8,008 | 5,580 | |
Foreign exchange losses | 8,588 | 41,681 | |
Loss on amortization of restricted stock remuneration | 6,800 | 6,944 | |
Other | 6,502 | 6,108 | |
Total non-operating expenses | 29,900 | 60,315 | |
Ordinary profit | 454,175 | 413,617 | |
Extraordinary income | |||
Gain on sales of non-current assets | 9,111 | - | |
Gain on sales of investment securities | 153,234 | - | |
Gain on step acquisitions | - | 346,280 | |
Total extraordinary income | 162,345 | 346,280 | |
Extraordinary losses | |||
Loss on retirement of non-current assets | 247 | 0 | |
Total extraordinary losses | 247 | 0 | |
Profit before income taxes | 616,272 | 759,898 | |
Income taxes | 206,032 | 134,693 | |
Profit | 410,240 | 625,204 | |
Profit (loss) attributable to non-controlling interests | 236 | (1,291) | |
Profit attributable to owners of parent | 410,004 | 626,496 | |
6
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
Quarterly Consolidated Statement of Comprehensive Income
(For the Three-month Period)
(Thousands of yen) | ||
First three months of FY3/20 | First three months of FY3/21 | |
(Apr. 1, 2019 - Jun. 30, 2019) | (Apr. 1, 2020 - Jun. 30, 2020) | |
Profit | 410,240 | 625,204 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | (140,741) | 2,184 |
Foreign currency translation adjustment | (7,429) | (56,688) |
Remeasurements of defined benefit plans, net of tax | (9,182) | 2,030 |
Share of other comprehensive income of entities | (744) | (32,066) |
accounted for using equity method | ||
Total other comprehensive income | (158,098) | (84,540) |
Comprehensive income | 252,142 | 540,664 |
Comprehensive income attributable to: | ||
Comprehensive income attributable to owners of parent | 251,547 | 543,659 |
Comprehensive income attributable to non-controlling | 595 | (2,995) |
interests | ||
7
IWAKI CO.,LTD. (6237) Financial Results for the First Quarter of FY3/21
- Notes to Quarterly Consolidated Financial Statements Going Concern Assumption
Not applicable.
Significant Changes in Shareholders' Equity
Not applicable.
Changes in Consolidated Subsidiaries During the Period
Not applicable.
During the first quarter of the current fiscal year, consolidated subsidiary Iwaki Europe GmbH acquired 60% of the stock of Iwaki Nordic A/S, which was an equity -method affiliate. As a result, beginning with the first quarter, Iwaki Nordic A/S and its subsidiaries Iwaki Suomi Oy, Iwaki Norge AS and Iwaki Sverige AB were added to the scope of consolidation. This transaction did not involve a change in a specified subsidi ary.
Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements
Calculation of tax expense
At Iwaki and certain consolidated subsidiaries, the tax expenses were calculated by first estimating the effective tax rate after the application of tax effect accounting with respect to profit before income taxes during the fiscal year, and multiplying that rate by the quarterly profit before income taxes.
Segment Information
Omitted because chemical pumps are the only bus iness of the Iwaki Group.
This financial report is solely a translation of "Kessan Tanshin" (in Japanese, including attachments), which has been prepared in accordance with accounting principles and practices generally accepted in Japan, for the conveni ence of readers who prefer an English translation.
8
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Iwaki Co. Ltd. published this content on 27 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2020 07:01:00 UTC