Edgar Filing: MAKITA CORP

MAKITA CORPORATION

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 January, 2006

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 þ Form 40-F o

[ 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 o No þ

TABLE OF CONTENTS


SIGNATURES
CONSOLIDATED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2005
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED BALANCE SHEETS
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
OPERATING SEGMENT INFORMATION
SUPPORT DOCUMENTATION (CONSOLIDATION)

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: January 27, 2006

(MIKITA LOGO)

Makita Corporation

Consolidated Financial Results
for the nine months
ended December 31, 2005
(U.S. GAAP Financial Information)

(English translation of “ZAIMU/GYOSEKI NO GAIKYO”
originally issued in the Japanese language)

(MAKITA LOGO)

CONSOLIDATED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2005

January 27, 2006

Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Masahiko Goto, President

1. Notes to consolidated financial statements for the nine months ended December 31, 2005
(1) Adoption of simplified accounting methods: None.
(2) Accounting policy changes since the year ended March 31, 2005: None.
(3) Change in scope of consolidation and equity method: None.

2. Results of the nine months ended December 31, 2005 (From April 1, 2005 to December 31, 2005)
(1) CONSOLIDATED FINANCIAL RESULTS



	Yen (million)
	For the nine months ended				For the nine months ended				For the year ended
	December 31,				December 31,				March 31,
	2004				2005				2005

			%				%				%
Net sales		143,741		6.1		165,773		15.3		194,737		5.8
Operating income		25,542		172.4		35,552		39.2		31,398		113.6
Income before income taxes		27,083		161.0		38,738		43.0		32,618		101.7
Net income		18,825		544.9		34,440		82.9		22,136		187.8

	Yen

Net income per share:
Basic		130.86				239.59				153.89
Diluted		126.43				—				148.76

Notes:

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

	2.		The table above shows the change in the percentage ratio of net sales, operating income, income before income taxes, and net income against the corresponding period of the previous year.

[Qualitative information on consolidated financial results]

Consolidated net sales remained firm, rising 15.3% from the same period of the previous fiscal year, to 165,773 million yen, supported by continued robust performance in Europe, strong sales of new products powered with lithium ion batteries, especially in North America, and other factors.

Regarding consolidated earnings, operating income rose 39.2% to 35,552 million yen, income before income taxes rose 43.0% to 38,738 million yen, and net income expanded 82.9% from the same period of the previous fiscal year, to 34,440 million yen. These substantial increases were due in part to approximately 8.5 billion yen in operating profit and 11.9 billion yen in net income from the transfer of ownership of the Company’s golf course management subsidiary as a result of a court-supervised rehabilitation proceeding. In addition, Makita recognized approximately 2.5 billion yen in income before taxes and about 1.5 billion yen in net income in an exchange of securities in connection with the merger of Mitsubishi Tokyo Financial Group Co., Ltd., and UFJ Holdings Co., Ltd..


			1

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

(2) CONSOLIDATED FINANCIAL POSITION



	Yen (million)
	As of		As of		As of
	December 31, 2004		December 31, 2005		March 31, 2005

Total assets		294,063		312,690		289,904
Shareholders’ equity		215,215		256,442		219,640
Shareholders’ equity ratio to total assets (%)		73.2%		82.0%		75.8%

	Yen

Shareholders’ equity per share		1,496.58		1,784.38		1,527.64

[CONSOLIDATED CASH FLOWS]



	Yen (million)
	For the nine months			For the nine months			For the year ended
	ended December 31,			ended December 31,			March 31,
	2004			2005			2005

Net cash provided by operating activities		11,957			16,770			16,842

Net cash provided by (used in) investing activities		(8,722	)		6,320			154

Net cash used in financing activities		(2,804	)		(17,957	)		(16,177	)

Cash and cash equivalents, end of period		24,896			30,863			25,384

[Qualitative information on consolidated cash flows]

Total cash and cash equivalents (“cash”) at the end of period amounted to 30,863 million yen, up 5,479 million yen from the previous year.

(Net Cash Provided by Operating Activities)

Continued strong performance resulted in net cash from operating activities amounting to 16,770 million yen.

(Net Cash Provided by Investing Activities)

Net cash from investing activities amounted to 6,320 million yen. Although the Company made investments in metal molds for new products, constructed a new building at the Okazaki Plant, and made other investments, these were more than offset by the sale of securities and other factors.

(Net Cash Used in Financing Activities)

Net cash used in financing activities amounted to 17,957 million yen, as the Company repaid a portion of the deposits of members of the golf course subsidiary undergoing civil rehabilitation and made dividend payments.


			2

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

Revised outlook for consolidated performance during the fiscal 2006 (from April 1, 2005, to March 31, 2006)


(Million yen, %)
			Operating		Income before
	Net sales		income		income taxes		Net income
Outlook announced previously (A)		214,000		39,000		42,000		36,500
Revised outlook (B)		220,000		42,000		45,000		39,000
Change (B-A)		6,000		3,000		3,000		2,500
Percentage revision		2.8%		7.7%		7.1%		6.8%
Actual results for the previous fiscal year ended March 31, 2005		194,737		31,398		32,618		22,136

Net income per share for the fiscal year is projected to be 271.37 yen.

Revised outlook for non-consolidated performance during the fiscal 2006

(from April 1, 2005, to March 31, 2006)


(Million yen, %)
			Operating
	Net sales		income		Ordinary profit		Net income
Outlook announced previously (A)		101,500		12,800		19,000		16,100
Revised outlook (B)		110,000		15,300		22,000		17,700
Change (B-A)		8,500		2,500		3,000		1,600
Percentage revision		8.4%		19.5%		15.8%		9.9%
Actual results for the previous fiscal year ended March 31, 2005		97,873		12,674		18,399		9,149

Net income per share for the fiscal year is projected to be 123.16 yen.


Notes:		The above performance forecast includes the following items, as announced at the time of the release of interim results on October 28, 2005.

	1.		Special factors in the consolidated accounts contributed approximately 8.5 billion yen to operating income and approximately 11.0 billion yen to income before income taxes as well as approximately 13.4 billion yen to net income.

	2.		Consolidated and non-consolidated sales include sales of approximately 1.0 billion yen accompanying the acquisition of the nailer business of Kanematsu-NNK Corp. on January 1, 2006. The impact of this acquisition on net income was not material.

[Qualitative information about the forecast for the year ending March 31, 2006]

	•		Increased demand for new products, including impact drivers with rechargeable lithium ion batteries which were introduced in Japan and overseas

	•		Continued strong sales in overseas markets, especially Europe and North America

The above performance forecast has primarily been adjusted from the prior forecast on October 28, 2005 because of a changed exchange rate assumption, 113 yen to US$1 and 137 yen to 1 Euro for the year ending March 31, 2006 (outlook announced previously: 109 yen to US$1 and 135 yen to 1 Euro).


			3

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

Our forecasts for dividends are as follows:



	For the year ended	For the year ending
	March 31, 2005	March 31, 2006
	(Results)	(Forecast)
Cash dividend per share for the interim period	11 yen	19 yen
	(With a special dividend of 2 yen)	(With a special dividend of 10 yen)

Cash dividend per share for the second half	36 yen
	(With a special dividend of 23 yen and 90 year memorial dividend of 4 yen)	(Note)

Total cash dividend per share for the year	47 yen
	(With a special dividend of 25 yen and 90 year memorial dividend of 4 yen)	(Note)


Note:		The annual dividend will be set according to the Company’s policy for distribution of earnings, which is to maintain a consolidated dividend payout ratio* of 30% or more. However, as indicated in the preceding section on the forecast for performance, there are special factors that will account for about 13.4 billion yen of the figure forecast for consolidated net income. Accordingly, this amount will be deducted from the net income figure used in computing dividends. In addition, the dividend for the second half of the fiscal year will be calculated by deducting the interim dividend from the annual dividend, and the final decision for the dividend will be made at the General Meeting of Shareholders to be held in June 2006.


*		The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated net income per share (after adjustments for special factors) and 100 is multiplied.

FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on Makita’s own projections and estimates. The power tools market, where Makita is mainly active, is subject to the effects of rapid shifts in economic conditions, demand for housing, currency exchange rates, changes in competitiveness, and other factors. Due to the risks and uncertainties involved, actual results could differ substantially from the content of these statements. Therefore, these statements should not be interpreted as representation that such objectives will be achieved.


			4

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS



	Yen (millions)
	As of			As of
	March 31,			December 31,			Increase
	2005			2005			(Decrease)

ASSETS
CURRENT ASSETS:
Cash and cash equivalents		25,384			30,863			5,479
Time deposits		7,867			4,062			(3,805	)
Marketable securities		57,938			51,219			(6,719	)
Trade receivables-
Notes		1,687			2,090			403
Accounts		38,997			42,165			3,168
Less- Allowance for doubtful receivables		(1,178	)		(1,061	)		117
Inventories		66,003			76,328			10,325
Deferred income taxes		3,831			6,201			2,370
Prepaid expenses and other current assets		7,363			7,782			419

Total current assets		207,892			219,649			11,757


PROPERTY, PLANT AND EQUIPMENT, at cost:
Land		17,673			17,469			(204	)
Buildings and improvements		51,085			52,781			1,696
Machinery and equipment		73,356			75,217			1,861
Construction in progress		790			3,044			2,254

		142,904			148,511			5,607
Less- Accumulated depreciation		(90,080	)		(91,455	)		(1,375	)

		52,824			57,056			4,232


INVESTMENTS AND OTHER ASSETS:
Investment securities		22,106			28,374			6,268
Deferred income taxes		390			479			89
Other assets		6,692			7,132			440

		29,188			35,985			6,797

		289,904			312,690			22,786


			5

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

CONDENSED CONSOLIDATED BALANCE SHEETS



	Yen (millions)
	As of			As of
	March 31,			December 31,			Increase
	2005			2005			(Decrease)

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings		9,060			3,303			(5,757	)
Trade notes and accounts payable		10,574			11,937			1,363
Accrued payroll		7,695			6,318			(1,377	)
Club members’ deposits		12,836			—			(12,836	)
Accrued expenses and other		12,248			14,353			2,105
Income taxes payable		5,695			8,536			2,841
Deferred income taxes		118			57			(61	)

Total current liabilities		58,226			44,504			(13,722	)


LONG-TERM LIABILITIES:
Long-term indebtedness		88			100			12
Estimated retirement and termination allowances		5,126			5,196			70
Deferred income taxes		4,538			3,974			(564	)
Other liabilities		887			957			70

		10,639			10,227			(412	)


MINORITY INTERESTS		1,399			1,517			118


SHAREHOLDERS’ EQUITY:
Common stock		23,805			23,805			—
Additional paid-in capital		45,430			45,436			6
Legal reserve and retained earnings		163,171			189,703			26,532
Accumulated other comprehensive income (loss)		(9,249	)		1,164			10,413
Treasury stock, at cost		(3,517	)		(3,666	)		(149	)

		219,640			256,442			36,802

		289,904			312,690			22,786




			6

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME



	Yen (millions)
	For the nine						For the nine
	months ended						months ended						Increase							For the year
	December 31,						December 31,						(Decrease)							ended March 31,
	2004						2005													2005

	(Amount)			(%)			(Amount)			(%)			(Amount)			(%)			(Amount)				(%)
NET SALES		143,741			100.0			165,773			100.0			22,032			15.3				194,737			100.0
Cost of sales		83,330			58.0			95,926			57.9			12,596			15.1				113,323			58.2

GROSS PROFIT		60,411			42.0			69,847			42.1			9,436			15.6				81,414			41.8
Selling, general, administrative and other expenses		34,869			24.2			34,295			20.7			(574	)		(1.6	)			50,016			25.7

OPERATING INCOME		25,542			17.8			35,552			21.4			10,010			39.2				31,398			16.1


OTHER INCOME (EXPENSES) :
Interest and dividend income		837			0.6			843			0.5			6			0.7				1,157			0.6
Interest expense		(440	)		(0.3	)		(313	)		(0.2	)		127			28.9				(588	)		(0.3	)
Exchange gains (losses) on foreign currency transactions, net		127			0.1			(106	)		(0.0	)		(233	)		—				37			0.0
Realized gains on securities, net		328			0.2			2,902			1.8			2,574			784.8				453			0.2
Other, net		689			0.4			(140	)		(0.1	)		(829	)		—				161			0.1

Total		1,541			1.0			3,186			2.0			1,645			106.7				1,220			0.6

INCOME BEFORE INCOME TAXES		27,083			18.8			38,738			23.4			11,655			43.0				32,618			16.7


PROVISION FOR INCOME TAXES		8,258			5.7			4,298			2.6			(3,960	)		(48.0	)			10,482			5.3

NET INCOME		18,825			13.1			34,440			20.8			15,615			82.9				22,136			11.4


			7

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW



	Yen (millions)
	For the nine months			For the nine months			For the year
	ended December 31,			ended December 31,			ended March 31,
	2004			2005			2005
Net cash provided by operating activities		11,957			16,770			16,842
Net cash provided by (used in) investing activities		(8,722	)		6,320			154
Net cash used in financing activities		(2,804	)		(17,957	)		(16,177	)
Effect of exchange rate changes on cash and cash equivalents		(111	)		346			(11	)

Net change in cash and cash equivalents		320			5,479			808
Cash and cash equivalents, beginning of period		24,576			25,384			24,576

Cash and cash equivalents, end of period		24,896			30,863			25,384


			8

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

OPERATING SEGMENT INFORMATION

For the nine months ended December 31, 2004



	Yen (millions)
													Corporate
	Japan		North		Europe		Asia		Other		Total		and elimi-			Consoli-
			America										nations			dated
Sales:
(1) External customers		37,539		28,652		55,401		5,624		16,525		143,741		—			143,741
(2) Intersegment		35,711		2,789		4,405		26,285		146		69,336		(69,336	)		—

Total		73,250		31,441		59,806		31,909		16,671		213,077		(69,336	)		143,741

Operating expenses		59,071		30,219		52,331		28,004		15,419		185,044		(66,845	)		118,199
Operating income		14,179		1,222		7,475		3,905		1,252		28,033		(2,491	)		25,542

For the nine months ended December 31, 2005



	Yen (millions)
													Corporate
	Japan		North		Europe		Asia		Other		Total		and elimi-			Consoli-
			America										nations			dated
Sales:
(1) External customers		38,624		34,814		65,664		6,399		20,272		165,773		—			165,773
(2) Intersegment		41,393		2,516		5,102		30,561		138		79,710		(79,710	)		—

Total		80,017		37,330		70,766		36,960		20,410		245,483		(79,710	)		165,773

Operating expenses		60,496		36,202		61,270		32,461		18,304		208,733		(78,512	)		130,221
Operating income		19,521		1,128		9,496		4,499		2,106		36,750		(1,198	)		35,552

For the year ended March 31, 2005



	Yen (millions)
													Corporate
	Japan		North		Europe		Asia		Other		Total		and elimi-			Consoli-
			America										nations			dated
Sales:
(1) External customers		50,955		38,607		75,864		7,378		21,933		194,737		—			194,737
(2) Intersegment		47,786		3,583		5,802		34,937		168		92,276		(92,276	)		—

Total		98,741		42,190		81,666		42,315		22,101		287,013		(92,276	)		194,737

Operating expenses		82,826		40,580		71,541		37,389		21,146		253,482		(90,143	)		163,339
Operating income		15,915		1,610		10,125		4,926		955		33,531		(2,133	)		31,398

Note:

Segment information is determined by the location of the Company and its relevant subsidiaries.


			9

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

SUPPORT DOCUMENTATION (CONSOLIDATION)

1. Consolidated results and forecast



	Yen (millions)
	For the nine						For the nine
	months ended						months ended
	December 31, 2004						December 31, 2005
	(Results)						(Results)
	(Amount)			(%)			(Amount)			(%)
Net sales		143,741			6.1			165,773			15.3
Domestic		28,623			(0.2	)		29,827			4.2
Overseas		115,118			7.8			135,946			18.1
Operating income		25,542			172.4			35,552			39.2
Income before income taxes		27,083			161.0			38,738			43.0
Net income		18,825			544.9			34,440			82.9
Net income per share (Yen)			130.86						239.59
Employees			8,647						8,550



	Yen (millions)
	For the year					For the six					For the year
	ended					months ended					ending
	March 31, 2005					September 30, 2005					March 31, 2006
	(Results)					(Results)					(Forecast)
	(Amount)			(%)		(Amount)			(%)		(Amount)			(%)
Net sales		194,737			5.8		106,649			9.5		220,000			13.0
Domestic		39,379			0.6		20,029			5.3		41,600			5.6
Overseas		155,358			7.2		86,620			10.5		178,400			14.8
Operating income (Note 2)		31,398			113.6		25,897			33.1		42,000			33.8
Income before income taxes (Note 2)		32,618			101.7		26,504			31.0		45,000			38.0
Net income (Note 2)		22,136			187.8		25,807			99.2		39,000			76.2
Net income per share (Yen) (Note 2)			153.89					179.52					271.37
Employees			8,560					8,557					—

Notes:	1. The table above shows the change in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year.
	2. After taking account of the special factors mentioned on page 3, the forecasts for Operating income, Income before income taxes, Net income, and Net income per share are as follows:


Operating income for the year ending March 31, 2006:		33.5 billion yen
Income before income taxes for the year ending March 31, 2006:		34.0 billion yen
Net income for the year ending March 31, 2006:		25.6 billion yen
Net income per share for the year ending March 31, 2006:		Approximately 178 yen


			10

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

2. Consolidated net sales by geographic area



	Yen (millions)
	For the nine					For the nine				For the year					For the six
	months ended					months ended				ended					months ended
	December 31, 2004					December 31, 2005				March 31, 2005					September 30, 2005
	(Results)					(Results)				(Results)					(Results)
	(Amount)		(%)			(Amount)		(%)		(Amount)		(%)			(Amount)		(%)
Japan		28,623		(0.2	)		29,827		4.2		39,379		0.6			20,029		5.3
North America		28,579		(9.9	)		34,572		21.0		38,490		(8.0	)		20,648		4.8
Europe		54,984		13.2			65,038		18.3		75,263		13.4			41,802		14.8
Asia		12,605		25.1			12,696		0.7		16,341		14.7			8,472		(9.1	)
Other regions		18,950		15.7			23,640		24.7		25,264		12.2			15,698		21.0
Total		143,741		6.1			165,773		15.3		194,737		5.8			106,649		9.5

Note: The table above sets forth Makita’s consolidated net sales by geographic area based on customers location for the periods presented.

3. Exchange rates



	Yen
	For the nine		For the nine
	months ended		months ended
	December 31, 2004		December 31, 2005
	(Results)		(Results)
Yen/U.S. Dollar		108.52		112.11
Yen/Euro		134.57		136.88

Yen

For the year

For the six

For the year

ended

months ended

ending

March 31, 2005

September 30, 2005

March 31, 2006

(Results)

(Forecast)

Yen/U.S. Dollar

107.55

109.52

113

Yen/Euro

135.17

135.61

137

4. Sales growth in local basis

(major countries)



	For the nine
	months ended
	December 31, 2005
	(Results)
U.S.A.		18.3	%
Germany		14.2	%
U.K		7.8	%
France		20.2	%
China		5.6	%
Australia		(5.4	%)


			11

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

(MAKITA LOGO)

5. Production ratio (unit basis)

For the nine

For the year

For the six

months ended

ended

months ended

December 31, 2005

March 31, 2005

September 30, 2005

(Results)

Domestic

29.3%

29.8%

28.4%

28.9%

Overseas

70.7%

70.2%

71.6%

71.1%

6. Consolidated capital expenditures, depreciation and amortization, and R&D cost



	Yen (millions)
	For the nine		For the nine
	months ended		months ended
	December 31, 2004		December 31, 2005
	(Results)		(Results)
Capital expenditures		4,376		7,931
Depreciation and amortization		3,954		4,201
R&D cost		3,076		3,273

Yen (millions)

For the year

For the six

For the year

ended

months ended

ending

March 31, 2005

September 30, 2005

March 31, 2006

(Results)

(Forecast)

Capital expenditures

6,655

4,856

11,800

Depreciation and amortization

5,381

2,658

5,400

R&D cost

4,085

2,148

4,300

7. Consolidated cash flow

Yen (millions)

For the nine

For the year

For the six

months ended

ended

months ended

December 31, 2004

December 31, 2005

March 31, 2005

September 30, 2005

(Results)

Net cash provided by operating activities

11,957

16,770

16,842

9,349

Net cash provided by (used in) investing activities

(8,722)

6,320

154

6,176

Net cash used in financing activities

(2,804)

(17,957)

(16,177)

(14,540)


			12

English Translation of “ZAIMU/GYOSEKI NO GAIKYO” originally issued in the Japanese Language

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents