Edgar Filing: MAKITA CORP

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MAKITA CORPORATION FORM 6-K

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 November, 2003

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
A MESSAGE FROM THE PRESIDENT
BALANCE SHEET (As of September 30, 2003)
STATEMENT OF INCOME (For the six months ended September 30, 2003)
STOCK INFORMATION (as of September 30, 2003)
OUTLINE OF THE COMPANY (as of September 30, 2003)

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: November 20, 2003

Japanese GAAP

SEMIANNUAL REPORT
(NON-CONSOLIDATED)

SIX MONTHS ENDED
SEPTEMBER 30, 2003

This is an excerpt from the Japanese semiannual report circulated to Japanese Shareholders.

MAKITA CORPORATION

A MESSAGE FROM THE PRESIDENT

Regarding economic trends overseas during the interim period ended September 30, 2003, the United States showed a gradual recovery trend supported by upward trends in personal consumption and private capital investment and firmness in housing investment. In Europe, domestic demand in the principal eurozone countries was weak and this, together with other factors, led to a virtual standstill in the economies of the region. On the other hand, in Asia, the pace of economic recovery has been gradual, owing to the influence of SARS and other factors.

In the Japanese economy, although personal consumption and employment conditions continued to be weak, private capital investment and corporate profits showed signs of recovery, leading to a sense that the economy was beginning to bottom out.

Against this backdrop, Makita has moved forward with the expansion of production at its operations in China, taken measures to reduce manufacturing costs through the use of parts manufactured in China as well as other measures, and also continued its ongoing efforts to develop new product to meet user needs.

In the United States, Makita focused especially on strengthening its marketing position in the professional-use market with the aim of enhancing its brand image. The Company also continued to take steps to improve profitability, including reducing inventories and realigning its logistics centers to reduce distribution costs.

Turning to interim business results, interim net sales declined 0.8% from the same period of the previous fiscal year, to 42,326 million yen. Of this total, domestic sales amounted to 18,920 million yen, almost the same amount as the previous interim period; although sales of new products, especially those linked to home remodeling, expanded, the number of new housing starts was stagnant. On the other hand, exports decreased 1.4%, to 23,406 million yen owing to the shifting of production to Makita’s subsidiary in China, and the export ratio was 55.3%.

Profitability was positively affected by such developments as an improvement in the cost of sales ratio, owing to the depreciation of yen and the use of parts manufactured in China, as well as the significant decrease in exchange losses on foreign currency transactions for the period under review compared to the same period of the previous year. As a result, ordinary profit was up 28.6% from the previous interim period, to 4,328 million yen. Interim net income showed a sharp increase of 180.9% from the same period of the previous year, to 3,877 million yen, due to gains from the sale of the Company’s No. 3 Headquarters Plant.

At the 91st Annual General Meeting of Shareholders held on June 27, 2003, a proposal was approved to repurchase a maximum of 5 million of the Company’s shares (with a maximum value of 5 billion yen). Through the end of the first six months of the fiscal year, the Company repurchased a total of 2,002 thousand of its outstanding shares (with a value of 2,142 million yen). In addition, as a result of the retiring of 5 million treasury stock held by the Company on August 20, 2003, the number of treasury stock still held by the Company stood at 4,076 thousand at the end of period.

Looking forward, as a significant number of uncertainties remain, including the possibility of sharp movements in foreign currency rates, the operating environment for the Company’s activities is therefore expected to continue to be harsh.

In view of these conditions, as a result of the shortening of its product development period, Makita is well positioned to respond nimbly to market needs and will continue to work to expand its marketing channels through the strengthening of our networks and Group companies in various regions of the world as well as substantially reduce costs with the objective of becoming a Strong Company—winning and holding the top share of the market for power tools for professional users in regions throughout the world.

In closing, we would like to ask our shareholders for their continuing support and cooperation as we work toward our objectives.

November 2003

Masahiko Goto
President and Representative Director

BALANCE SHEET
(As of September 30, 2003)


			(In million Yen)						(In million Yen)
(Assets)						(Liabilities)
Current assets				72,157		Current liabilities				11,991
	Cash			3,670			Trade notes payable			371
	Trade notes receivable			112			Accounts payable			3,844
	Accounts receivable			14,746			Other accounts payable			1,193
	Marketable securities			27,871			Corporate and inhabitant income taxes and business taxes payable			2,115
	Inventories			10,944			Accrued expenses			4,024
	Short-term loans receivable			12,174			Other current liabilities			444
	Other current assets			3,022		Long-term liabilities				22,527
	Allowance for doubtful accounts			(382	)		Convertible bonds payable			12,994
Fixed assets				151,103			Estimated retirement and termination allowances			9,190
	Tangible fixed assets			33,040			Estimated retirement allowances for directors and statutory auditors			343
		Buildings		12,548		Total liabilities				34,518
		Machinery and equipment		3,816		(Shareholders’ equity)
		Land		13,507		Common stock				24,204
		Other tangible fixed assets		3,169		Additional paid-in capital				47,524
	Intangible fixed assets			466			Additional paid-in capital			47,523
	Investment and other assets			117,597			Other additional paid-in capital			1
		Investment in securities		38,886		Retained earnings				116,970
		Investment in subsidiaries		69,378			Legal reserve			5,669
		Other investments		9,563			Voluntary reserve			87,250
		Allowance for doubtful accounts		(230	)		Unappropriated retained earnings			24,051

							[Net income for the first six months]			[3,877]
						Net unrealized holding gains on available-for-sale securities				3,316
						Treasury stock				(3,272	)
						Total shareholders’ equity				188,742

		Total assets		223,260				Total liabilities and shareholders’ equity		223,260

STATEMENT OF INCOME
(For the six months ended September 30, 2003)


			(In million Yen)

(Ordinary profit and loss)
Operating profit and loss
	Operating revenue
		Net sales			42,326
	Operating expenses
		Cost of sales		27,780
		Selling, general and administrative expenses		11,136	38,916

	Operating profit				3,410
Non-operating profit and loss
	Non-operating income
		Interest and dividend income		932
		Other non-operating income		365	1,297

	Non-operating expenses
		Interest expenses		97
		Net exchange losses		203
		Other non-operating expenses		79	379

Ordinary profit					4,328
(Special profit and loss)
Special profit
		Gain on sales of fixed assets		3,122
		Gain on sales of investment securities		188
		Reversal of allowance for doubtful accounts		2	3,312

Special loss
		Loss on sales and disposal of fixed assets		1,561
		Unrealized losses on investment securities		242
		Write-off of golf course membership		1	1,804

Income before income taxes					5,836
		Tax provision current			3,256
		Tax provision deferred			(1,297	)

Net income					3,877
Unappropriated retained earnings carried forward from previous year					24,188
Retirements of treasury stock					4,014

Unappropriated retained earnings as of September 30, 2003					24,051

Note: Amounts of less than 1 million yen have been rounded.

STOCK INFORMATION (as of September 30, 2003)


Number of total outstanding common stocks			148,006,992
Number of shareholders			11,851

Major shareholders


Name	Number of shares held

	(thousand)
Northern Trust Company (AVFC) Sub Account American Clients		10,189
Japan Trustee Services Bank, Ltd. (Trust account)		6,354
The UFJ Bank, Limited		6,200
The Master Trust Bank of Japan, Ltd. (Trust Account)		5,177
The Chase Manhattan Bank, N.A. London		4,575
Nippon Life Insurance Company		4,304
The Bank of New York, Treaty Jasdec Account		3,924

Note: In addition to the above, the Company owns 4,076 thousand shares of treasury stock.

Investors by category


				Percentage of total
Type		Number of shares held		shares outstanding

		(thousand)
Financial Institutions & Securities Corporations			49,243		33.3	%
Foreigners			39,695		26.8
Individuals & Others			35,212		23.8
Other Business Corporations			19,781		13.4
Treasury stock			4,076		2.7
	Total		148,007		100.0

OUTLINE OF THE COMPANY (as of September 30, 2003)


Corporate name	:	KABUSHIKI KAISHA MAKITA Makita Corporation
Headquarters	:	3-11-8, Sumiyoshi-cho, Anjo, Aichi 446-8502, Japan
Phone	:	(0566) 98-1711
Web Site	:	http://www.makita.co.jp/
Founded	:	March 21, 1915
Incorporated	:	December 10, 1938
Paid-in Capital	:	24,203.61 million yen
Employees	:	2,942
Business	:	Production and marketing of electric power tools, woodworking machinery, pneumatic tools and household & garden equipments


Directors and Statutory Auditors	:	*President	Masahiko Goto
		Managing Director	Masami Tsuruta
		Director	Yasuhiko Kanzaki
		Director	Ken’ichiro Nakai
		Director	Tadayoshi Torii
		Director	Tomoyasu Kato
		Director	Kazuya Nakamura
		Director	Masahiro Yamaguchi
		Director	Shiro Hori
		Director	Tadashi Asanuma
		Director	Hisayoshi Niwa
		Director	Zenji Mashiko
		Standing Statutory Auditor	Ryota Ichikawa
		Standing Statutory Auditor	Ken’ichi Ikeda
		Statutory Auditor	Keiichi Usui
		Statutory Auditor	Shoichi Hase


Notes:	1.	The asterisk denotes Representative Director.
	2.	Messrs. Keiichi Usui and Shoichi Hase are the outside statutory auditors provided for by Article 18, Clause 1 of the Audit Special Exceptions Law.

1. Accumulated depreciation on tangible fixed assets:

60,204 million yen

2. Interim net income per share:

3. Amounts of less than 1 million yen have been rounded.