MAKITA CORPORATION FORM 6-K
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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 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__

 


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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)


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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: November 20, 2003

 


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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

 


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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.

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     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

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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  
             
                 
 
             
Notes:   1. Accumulated depreciation on tangible fixed assets:   60,204 million yen    
    2. Interim net income per share:   26.66 yen    
    3. Amounts of less than 1 million yen have been rounded.        

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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.

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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  

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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.

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