SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report Of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of November 2002.
Commission File Number: 2-58155
KUBOTA CORPORATION
(Translation of registrant’s name into English)
2-47, Shikitsuhigashi 1-chome, Naniwa-ku, Osaka, 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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) :
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) :
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
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) : 82-
Information furnished on this form:
Exhibit Number
Contact:
IR Group
Kubota Corporation
2-47, Shikitsuhigashi 1-chome,
Naniwa-ku, Osaka 556-8601, Japan
Phone: (81)-6-6648-2645
Fax: (81)-6-6648-2642
FOR IMMEDIATE RELEASE (WEDNESDAY, NOVEMBER 13, 2002)
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2002 REPORTED BY KUBOTA CORPORATION
OSAKA, JAPAN, November 13, 2002 —-Kubota Corporation reported today its consolidated and non-consolidated results of operations for the six months ended September 30, 2002.
Note: THIS PRESS RELEASE REPLACES THE SEMIANNUAL REPORT.
Consolidated Financial Highlights
| (1) Results of operations | (In millions of yen and thousands of U.S. dollars except per ADS amounts) |
| | | Six months ended Sept. 30, 2002
| | | % (*)
| | | Six months ended Sept. 30, 2001
| | | % (*)
| | | Year ended Mar. 31, 2002
| |
| Net sales | | ¥ [$ | 414,583 3,370,593 | ] | | (8.8 | ) | | ¥ | 454,519 | | | (1.1 | ) | | ¥ | 965,791 | |
| Operating income | | ¥ [$ | 24,411 198,463 | ] | | (13.9 | ) | | ¥ | 28,365 | | | 27.7 | | | ¥ | 34,424 | |
| Income before income taxes, minority interest in earnings of subsidiaries, and equity in net income of affiliated companies | | ¥ [$ | 23,283 189,293 | ] | | (16.9 | ) | | ¥ | 28,003 | | | (30.6 | ) | | ¥ | 28,683 | |
| Net Income | | ¥ | 12,259 | | | (7.6 | ) | | ¥ | 13,264 | | | — | | | ¥ | 9,530 | |
| | | [$ | 99,667 | ] | | | | | | | | | | | | | | |
| % of net sales | | | 3.0 | % | | — | | | | 2.9 | % | | — | | | | 1.0 | % |
| Net income per ADS (5 common shares) | | | | | | | | | | | | | | | | | | |
| Basic | | ¥ [$ | 44 0.36 | ] | | | | | ¥ | 47 | | | | | | ¥ | 34 | |
| Diluted | | ¥ [$ | 42 0.34 | ] | | | | | ¥ | 44 | | | | | | ¥ | 33 | |
| Ratio of net income to shareholders’ equity | | | 3.2 | % | | | | | | 3.1 | % | | | | | | 2.3 | % |
| Notes. 1: | | Equity in net income of affiliated companies for the six months ended September 30, 2002, and 2001 was ¥212 million |
and ¥205 million, respectively.
| 2: | | (*) represents percentage change from the comparable previous period. |
-1-
Kubota Corporation and Subsidiaries
| (2) Financial position | (In millions of yen and thousands of U.S. dollars except per ADS amounts) |
| | | Sept. 30, 2002
| | | Sept. 30, 2001
| | | Mar. 31, 2002
| |
| Total assets | | ¥ [$ | 1,112,566 9,045,252 | ] | | ¥ | 1,212,055 | | | ¥ | 1,200,117 | |
| Shareholders’ equity | | ¥ [$ | 379,999 3,089,423 | ] | | ¥ | 413,555 | | | ¥ | 394,970 | |
| Ratio of shareholders’ equity to total assets | | | 34.2 | % | | | 34.1 | % | | | 32.9 | % |
| Shareholders’ equity per ADS | | ¥ [$ | 1,386 11.27 | ] | | ¥ | 1,467 | | | ¥ | 1,420 | |
| (3) Summary of statements of cash flows | (In millions of yen and thousands of U.S. dollars) |
| | | Six months ended Sept. 30, 2002
| | Six months ended Sept. 30, 2001
| | Year ended Mar. 31, 2002
|
| Net cash provided by operating activities | | ¥ 62,590 [$508,862] | | ¥ 53,702 | | ¥77,826 |
| Net cash used in investing activities | | (¥ 13,344) [($108,488)] | | (¥ 12,148) | | (¥34,458) |
| Net cash used in financing activities | | (¥ 41,874) [($340,439)] | | (¥ 16,212) | | (¥61,294) |
| Cash & cash equivalents, end of period | | ¥ 67,883 [$551,894] | | ¥104,046 | | ¥60,983 |
| (4) | | 118 subsidiaries are consolidated, and investments in 49 affiliated companies are accounted for by the equity method. |
| (5) | | The number of newly consolidated companies during the period: 3 |
The number of companies newly excluded from consolidated subsidiaries during the period: 4
The number of newly affiliated companies during the period: 0
The number of companies newly excluded from affiliated companies during the period: 1
| (6) Anticipated consolidated results of operations for the year ending March 31, 2003 | | (In millions of yen) |
| | | | | | | |
| | | Year ending March 31, 2003
| | Year ended March 31, 2002
|
| Net sales | | ¥ | 930,000 | | ¥ | 965,791 |
| Income before income taxes, minority interest in earnings of subsidiaries, and equity in net income of affiliated companies | | ¥ | 47,000 | | ¥ | 28,683 |
| Net income | | ¥ | 24,000 | | ¥ | 9,530 |
| (Ref.) | | Anticipated basic net income per ADS for the year ending March 31, 2003 will be ¥88. |
-2-
Kubota Corporation and Subsidiaries
1. Management Policies
1. Basic management policy
More than a century since its founding, Kubota Corporation and subsidiaries (collectively “the Company”)has continued to help improve people’s quality of life, by offering products and services—including farm equipment, pipes for water supply and sewage systems, environmental control plants, industrial castings, and building materials. Through its businesses, the Company has contributed to bringing a better future for people, society, and the earth. While adhering to this corporate philosophy, the Company is implementing management policies that include focusing on prioritizing allocation of management resources and giving precedence to agility in its operations as well as strengthening consolidated operations. Through these measures, the Company aims to respond with flexibility to the changing times, resulting in a high enterprise value.
2. Basic policy related to the Company’s profit allocation
The Company’s basic policy for the allocation of profit is to “maintain stable or raising dividends”. The Company’s policy is to determine the most appropriate use of retained earnings, while considering current business operations as well as the future business environment.
3. The | | medium and long-term management strategies including issues upon which the Company should take countermeasures |
(1) Execution of Medium-Term Management Strategy
In March 2001, the Company established the “Medium-Term Management Strategy”, which will be applied during the three year period ending March 31, 2004 in order to attain further improvement in profitability. The Company has been doing its utmost to make this happen with company-wide efforts. Supported by brisk private consumption and new housing starts, the tractor business in the US has remained favorable and promoted the Company’s Medium-Term Management Strategy smoothly. However, the domestic economic environment surrounding the Company became much tougher than previously expected. In addition to decreased demand from both central and local governments, the ongoing price-decline has negatively impacted the Company, leaving the Company no choice but to change the details of the Medium-Term Management Strategy, but the basic strategy is the same. Under such conditions the Company is promoting drastic countermeasures for recovery of profitability in public demand-related businesses, while in the tractor business in the US, the Company is also trying to enhance its competitiveness by introducing new mainstay models, or launching into new business fields.
Specifically, for the purpose of recovering profitability, the Company aims to lower the break-even point through drastic cost-cuts such as cutting fixed costs, or reducing personnel through changes in the production systems, centering around public demand-related businesses. The Company will also try to enhance its competitiveness through a 20% increase in productivity, a reduction of inventory, and a shortening of lead times. Meanwhile, in the US tractor business, the Company, in order to increase sales and expand market share, has taken countermeasures such as introducing new models with greater functions and lower prices to its mainstay product line-ups. In addition, the Company decided to enter the utility vehicles business and further expand its business fields aggressively.
-3-
Kubota Corporation and Subsidiaries
In order to achieve the Company’s goals, every employee has to change himself or herself. In April 2002, the Company introduced a new program for human resource management, which includes the introduction of a performance appraisal program based on individual achievement, promoting younger employees to senior posts by lowering the retirement age from senior posts, a bonus program linked more to the company performance and so forth. With its plan, the Company aims to establish a competitive and creative corporate culture.
In the meantime, the basic strategy for the medium-term, as designed last year, remains unchanged. The Company endeavors to pursue further growth through new businesses and businesses adjacent to current ones, however, places emphasis on enhancing profitability of current businesses.
(2) Finance Strategy
The Company has been grappling with trimming interest-bearing debt. At the end of September, 2002, the amount of interest-bearing debt decreased ¥59.3 billion, to ¥303.2 billion compared with the previous period. At the same time, from December, 2001, the Company started to purchase its treasury stock in order to enhance efficiency of shareholders’ equity. The number of shares purchased amounted to 37.7 million at the end of September 2002.
2. Review of Operations and Financial Condition
1. Review of Operations
(Note 1) The Company adopted Emerging Issues Task Force 01-9, “Accounting for Consideration Given by a Vendor to a Consumer (including a Reseller of the Vendor’s Products)” from the six months ended in September 30, 2002. As a result, sales incentives previously classified as selling, general, and administrative expenses for the six months ended September 30, 2001 and the year ended March 31, 2002 have been reclassified as a reduction of revenues to conform to the presentation for the six months ended September 30, 2002.
(Note 2) From the six months under review, in order to clarify the relationship between management structure and industry segments, the Company increased the industry segments from three to five. The five new industry segments are as follows ; “Internal Combustion Engine & Machinery”, “Pipes, Valves & Industrial Castings”, “Environmental Engineering”, “Building Materials & Housing”, and “Other”.
(1) Outline of the results of operations for the six months under review
The Japanese economy during the six months under review has been very harsh as a whole, negatively impacted by aggravated deflation, slowing public investment, weak capital expenditures in the private sector, feeble new housing starts, and lackluster private consumption and so forth. Overseas, the U.S. economy has been supported by brisk private consumption and favorable housing investment, and the EU countries maintained a moderate economic trend of recovery. Consequently, such overseas economic conditions helped the Japanese companies to hold on to their positions. Under such conditions, sales of the Company during the six months under review, were ¥414.6 billion, a 8.8% decrease from the prior period. Domestic sales were ¥279.9 billion, a 14.7% decrease, resulting principally from the withdrawal from the prefabricated housing business and subdued public works spending. Overseas sales were up 6.5%, to ¥134.7 billion, making up 32.5 % of total sales, thanks to the satisfactory increase in the sales of tractors centering in North America, as well as depreciation of the yen. Operating income was ¥24.4 billion, a 13.9 % decrease, due mainly to the decrease of sales. Income before income taxes, minority interest in earnings of subsidiaries, and equity in net income of affiliated companies was ¥23.3 billion, a 16.9% decrease. Net income was ¥12.3 billion, a 7.6% decrease from the prior period.
-4-
Kubota Corporation and Subsidiaries
(2) Review of operations by product group
(1) Sales in Internal Combustion Engine & Machinery were ¥239.6 billion, 3.3% higher than the previous period, comprising 57.8% of consolidated net sales. Domestic sales increased 0.6 %, to ¥114.6 billion. Overseas sales also increased 5.9%, to ¥125.0 billion. This segment consists of farm equipment and agriculture-related products, engines, and construction machinery.
Sales of farm equipment rose from the previous period. In addition to the protracted recession, the drop in rice prices caused the Japanese farmers to refrain from replacement of farm equipment. Negatively affected by such weak replacement demand, the sales of mainstay tractors were not satisfactory and, in the end, domestic sales of tractors retreated. Regarding sales of combine harvesters, they remained favorable, resulting from the inception of new models or sales promotions. As a result, total domestic sales of farm equipment increased.
Overseas, sales in the US were higher than those of the prior period due mainly to the successful sales campaign and introduction of new models. In France, sales of tractors to local governments declined, and sales of mowers also retreated mainly due to fierce competition. In the UK, sales declined due to the sluggish market conditions. On the other hand, in Germany, sales of mowers advanced while the economic situation became stagnant. In the Asian market, while sales of combine harvesters were very satisfactory in China, demand for farm equipment in Chinese Taipei never ceased to decline principally due to the reduction in rice-paddy acreage caused by Chinese Taipei’s admission to the WTO. That unfavorable demand ended in much lower sales than for the previous period. In Australia, sales advanced, centering on mowers.
Sales of engines decreased from the prior period. In the domestic market, sales to industries for construction machinery, industrial machinery, and farm equipment remained subdued, surrounded by harsh conditions. Most of all, sales to industries for construction machinery, affected by the reduction of public works spending, were sluggish with customers, instead focusing on construction machinery for rent. In the U.S, sales were down from the prior period in spite of favorable sales for mowers. This was because sales to industries for construction machinery and industrial machinery stagnated centering on products for rent.
Sales of construction machinery were ¥22.1 billion, an increase of 7.2% from the previous period. Domestic sales were \9.5 billion, a decrease of 2.2%, reflecting several factors such as a reduction in public works spending and a decline in general economic conditions. Overseas sales were ¥12.6 billion, an increase of 15.5 %. In the EU market, which is a mainstay market of this sub-segment, sales in France were down, and in Germany, because of weak domestic demand and reduction of public works spending, sales retreated. In North America, sales jumped thanks to the introduction of new models.
(2) Sales in Pipes, Valves & Industrial Castings were ¥71.6 billion, 12.6 % lower than in the prior period, comprising 17.3% of consolidated net sales. Domestic sales decreased 15.3 %, to ¥64.3 billion. Overseas sales increased 21.1 %, to ¥ 7.3 billion. This segment consists of two sub-segments ; “pipes and valves” and “industrial castings”.
Sales in pipes and valves declined 11.8% from the prior period, to ¥58.8 billion. Domestic sales were down 13.6%, to ¥55.7 billion. Overseas sales were up 39.3%, to ¥3.1 billion. Domestic sales of ductile iron pipes, which is the mainstay in this sub-segment, declined driven by a reduction in public works spending and financial difficulties of local governments. Sales of polyvinyl chloride pipes declined reflecting reduction of public works spending or slump of new housing starts and, most of all, fierce competition and falling prices. Sales of spiral-welded steel pipes rose thanks mainly to an aggressive sales promotion in the private sector. Overseas, sales of valves to Middle East markets surged and this contributed to the increase in the total sales of overseas sales of this sub-segment.
-5-
Kubota Corporation and Subsidiaries
Sales of industrial castings decreased 15.9%, to ¥12.8 billion. Domestic sales were down 24.6%, to ¥8.6 billion. Overseas sales were up 10.3%, to ¥4.2 billion. Although sales of cargo oil pipes for oil tankers soared in overseas markets, sales of reformer tubes retreated due to fierce competition, and sales of rolls for steel mills were also reduced by the decreasing capital expenditures negatively affected by the reshuffle in the steel industry. Sales of sewage pipes rose thanks to the brisk construction of condominiums. On the other hand, sales of cast steel pipes for preventing landslides and the ductile tunnel segment decreased due mainly to the reduction of public works spending.
(3) Sales in Environmental Engineering were ¥33.0 billion, 4.5% higher than the previous period, accounting for 8.0% of consolidated net sales. Domestic sales increased 7.4%, to ¥31.9 billion. Overseas sales decreased 41.2%, to ¥1.1 billion.
Sales of sewage treatment plants and pumps, the mainstay within this business segment, shrank stemming from the financial difficulties in local governments. On the other hand, construction of large melting furnaces proceeded successfully and that led to the increase in the sales of this sub-segment. Overseas, sales decreased due to a decline in the sales of pumps.
(4) Sales in Building Materials & Housing were ¥29.9 billion, 49.6% lower than the prior period, accounting for 7.2% of consolidated net sales. This segment consists mainly of building materials (roofing materials, siding materials and septic tanks) and sales of condominiums.
Sales of building materials grew 2.7% to ¥29.2 billion. Although sales of roofing materials declined caused by feeble new housing starts and fierce competition, sales of siding materials increased due in part to the successful introduction of new types, and consequently, sales in this sub-segment showed an increase.
Sales of condominiums fell 97.8%, to ¥0.7 billion. The Company withdrew from the prefabricated housing business at the end of last fiscal year, which reduced the revenue of prefabricated houses to zero in the period under review, and sales of condominiums were reduced. Accordingly sales of this sub-segment deteriorated significantly.
(5) Sales of Other were ¥40.5 billion, 18.7% lower than the prior period, accounting for 9.7% of consolidated net sales. Domestic sales declined 20.4%, to ¥39.3 billion. Overseas sales climbed 199.7%, to ¥1.2 billion. This segment consists of vending machines, electric equipment, air-conditioning equipment, construction and so forth.
Sales related to construction retreated, led principally by the shrink in public construction. Sales of vending machines and electric equipment declined because of stagnant capital expenditure in the private sector.
-6-
Kubota Corporation and Subsidiaries
2. Financial Condition
Net cash provided by operating activities was ¥62.6 billion, up by ¥8.9 billion, compared with the prior period. Net cash used in investing activities amounted to ¥13.3 billion, up by ¥1.2 billion, compared with the prior period. Accordingly, free cash flows, equal to net cash flows from which the amount of capital expenditures are deducted, provided by operating activities, were ¥46.1 billion, up by ¥11.2 billion compared with the prior period. With the free cash flows, the Company implemented strengthening financial structure, focusing on reduction of interest-bearing debt or purchase of treasury stock. Net cash used in financing activities amounted to ¥41.9 billion, up by ¥25.7 billion, compared with the prior period.
As a result, cash and cash equivalents at September 30, 2002 was ¥67.9 billion, down ¥36.2 billion compared with the prior period. The negative effect of exchange rate changes on cash and cash equivalents during this period, \0.5 billion, is included in this amount.
3. Matter concerning profit allocation for this half of the fiscal year
The Company plans to pay interim cash dividends of ¥15 per ADS.
3. Prospect for the Full Fiscal Year
The economic conditions in Japan will remain as tough as ever, with growing concern over the increasing bankruptcy that may result from the full scale disposals of bad loans by the Japanese government, ongoing deflation, and weak demand caused by stagnant private consumption. Overseas, a worldwide recession could be followed by simultaneous falls of stock prices all over the world, and the world situation could become less secure due to possible American attacks on Iraq, and as a result, the outlook of the world economy remains uncertain.
Under such conditions, the Company continues toward the vigorous and steady implementation of the “Medium-Term Management Strategy”, as well as its efforts to improve profitability by further cost cutting and streamlining the corporate staff department.
Looking ahead, the Company forecasts consolidated net sales for the year ending March 31, 2003 at ¥930.0 billion, down by ¥35.8 billion compared with the prior year. The Company also expects operating income at ¥48.0 billion, up by ¥13.6 billion, and income before income taxes, minority interest in earnings of subsidiaries, and equity in net income of affiliated companies at ¥47.0 billion, up by ¥18.3 billion. Additionally net income is expected to be ¥24.0 billion, up by ¥14.5 billion as compared with the prior year. (These forecasts anticipate an exchange rate of ¥125=US$1.)
Projected results of operations and other future forecasts contained in this report are the estimates of the Company based on information available to the Company as of this published date. Therefore, those projections include certain potential risks and uncertainties. Accordingly, the users of this information are requested to note that the actual results could differ materially from those future projections. Major factors that could influence the ultimate outcome include the economic condition surrounding the Company, foreign exchange rates, agricultural policy in Japan, the trend of public investment and private capital expenditure in Japan, the price-competitive pressure in the market, and the ability for the Company to manufacture or innovate the products which will be accepted in the market, although the factors that could influence the ultimate outcome of the Company are not limited to the factors mentioned above.
-7-
Kubota Corporation and Subsidiaries
Consolidated Statements of Income
(In millions of yen)
Account | | Six months ended Sept. 30, 2002
| | Six months ended Sept. 30, 2001
| | Change
| | | Year ended Mar. 31, 2002
| |
| | | Amount
| | | %
| | Amount
| | | %
| | Amount
| | | %
| | | Amount
| | | %
| |
| Net sales | | 414,583 | | | 100.0 | | 454,519 | | | 100.0 | | (39,936 | ) | | (8.8 | ) | | 965,791 | | | 100.0 | |
| Cost of sales | | 309,189 | | | 74.6 | | 338,417 | | | 74.5 | | (29,228 | ) | | (8.6 | ) | | 729,863 | | | 75.6 | |
| Selling, general, and administrative expenses | | 79,661 | | | 19.2 | | 87,094 | | | 19.2 | | (7,433 | ) | | (8.5 | ) | | 188,713 | | | 19.5 | |
| Loss from disposal of businesses and fixed assets | | 1,322 | | | 0.3 | | 643 | | | 0.1 | | 679 | | | 105.6 | | | 12,791 | | | 1.3 | |
| | |
|
| | | |
|
| | | |
|
| | | | |
|
| | | |
| Operating income | | 24,411 | | | 5.9 | | 28,365 | | | 6.2 | | (3,954 | ) | | (13.9 | ) | | 34,424 | | | 3.6 | |
| Other income (expenses) | | | | | | | | | | | | | | | | | | | | | | |
| Interest and dividend income | | 4,366 | | | | | 4,237 | | | | | 129 | | | | | | 7,506 | | | | |
| Interest expense | | (2,544 | ) | | | | (3,797 | ) | | | | 1,253 | | | | | | (6,697 | ) | | | |
| Other (net) | | (2,950 | ) | | | | (802 | ) | | | | (2,148 | ) | | | | | (6,550 | ) | | | |
| | |
|
| | | |
|
| | | |
|
| | | | |
|
| | | |
| Other expenses, net | | (1,128 | ) | | | | (362 | ) | | | | (766 | ) | | | | | (5,741 | ) | | | |
| Income before income taxes, minority interest in earnings of subsidiaries, and equity in net income of affiliated companies | | 23,283 | | | 5.6 | | 28,003 | | | 6.2 | | (4,720 | ) | | (16.9 | ) | | 28,683 | | | 3.0 | |
| Income taxes | | | | | | | | | | | | | | | | | | | | | | |
| Current | | 10,481 | | | | | 9,392 | | | | | 1,089 | | | | | | 22,905 | | | | |
| Deferred | | (475 | ) | | | | 4,646 | | | | | (5,121 | ) | | | | | (5,591 | ) | | | |
| | |
|
| | | |
|
| | | |
|
| | | | |
|
| | | |
| Total income taxes | | 10,006 | | | | | 14,038 | | | | | (4,032 | ) | | | | | 17,314 | | | | |
| Minority interests in earnings of subsidiaries | | 1,230 | | | | | 906 | | | | | 324 | | | | | | 1,660 | | | | |
| Equity in net income of affiliated companies | | 212 | | | | | 205 | | | | | 7 | | | | | | (179 | ) | | | |
| | |
|
| | | |
|
| | | |
|
| | | | |
|
| | | |
| Net income | | 12,259 | | | 3.0 | | 13,264 | | | 2.9 | | (1,005 | ) | | (7.6 | ) | | 9,530 | | | 1.0 | |
| | | | | | | | | | | | | | | | | | | | | | (In yen | ) |
| Basic earnings per ADS (5 common shares): | | 44 | | | | | 47 | | | | | | | | | | | 34 | | | | |
| Diluted earnings per ADS (5 common shares): | | 42 | | | | | 44 | | | | | | | | | | | 33 | | | | |
-8-
Kubota Corporation and Subsidiaries
Consolidated Balance Sheets
| Assets | (In millions of yen) |
| | | Sept. 30, 2002
| | Sept. 30, 2001
| | Change
| | | Mar. 31, 2002
|
| | | Amount
| | | %
| | Amount
| | | %
| | Amount
| | | Amount
| | | %
|
Current assets | | | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | 67,883 | | | | | 104,046 | | | | | (36,163 | ) | | 60,983 | | | |
| Short-term investments | | 1,249 | | | | | 2,011 | | | | | (762 | ) | | 1,394 | | | |
| Notes and accounts receivable | | | | | | | | | | | | | | | | | | |
| Trade notes | | 69,635 | | | | | 94,836 | | | | | (25,201 | ) | | 103,701 | | | |
| Trade accounts | | 184,973 | | | | | 191,969 | | | | | (6,996 | ) | | 271,635 | | | |
| Finance receivables, net | | 98,195 | | | | | 87,971 | | | | | 10,224 | | | 89,253 | | | |
| Less : Allowance for doubtful receivables | | (4,227 | ) | | | | (5,123 | ) | | | | 896 | | | (4,052 | ) | | |
| | |
|
| | | |
|
| | | |
|
| |
|
| | |
| Total | | 348,576 | | | | | 369,653 | | | | | (21,077 | ) | | 460,537 | | | |
| Inventories | | 152,959 | | | | | 167,356 | | | | | (14,397 | ) | | 155,354 | | | |
| Other current assets | | 62,362 | | | | | 63,926 | | | | | (1,564 | ) | | 45,496 | | | |
| | |
|
| | | |
|
| | | |
|
| |
|
| | |
| Total current assets | | 633,029 | | | 56.9 | | 706,992 | | | 58.3 | | (73,963 | ) | | 723,764 | | | 60.3 |
Investments | | | | | | | | | | | | | | | | | | |
| Investments in and advances to affiliated companies | | 12,711 | | | | | 11,865 | | | | | 846 | | | 12,740 | | | |
| Other investments | | 127,391 | | | | | 157,338 | | | | | (29,947 | ) | | 128,876 | | | |
| | |
|
| | | |
|
| | | |
|
| |
|
| | |
| Total investments | | 140,102 | | | 12.6 | | 169,203 | | | 14.0 | | (29,101 | ) | | 141,616 | | | 11.8 |
Property, plant, and equipment | | | | | | | | | | | | | | | | | | |
| Land | | 89,880 | | | | | 91,797 | | | | | (1,917 | ) | | 88,315 | | | |
| Buildings | | 197,955 | | | | | 196,232 | | | | | 1,723 | | | 197,603 | | | |
| Machinery and equipment | | 456,405 | | | | | 460,312 | | | | | (3,907 | ) | | 452,156 | | | |
| Construction in progress | | 3,638 | | | | | 4,988 | | | | | (1,350 | ) | | 4,253 | | | |
| | |
|
| | | |
|
| | | |
|
| |
|
| | |
| Total | | 747,878 | | | | | 753,329 | | | | | (5,451 | ) | | 742,327 | | | |
| Accumulated depreciation | | (476,572 | ) | | | | (469,006 | ) | | | | (7,566 | ) | | (466,116 | ) | | |
| | |
|
| | | |
|
| | | |
|
| |
|
| | |
| Net property, plant, and equipment | | 271,306 | | | 24.4 | | 284,323 | | | 23.5 | | (13,017 | ) | | 276,211 | | | 23.0 |
Other assets | | 68,129 | | | 6.1 | | 51,537 | | | 4.2 | | 16,592 | | | 58,526 | | | 4.9 |
| | |
|
| |
| |
|
| |
| |
|
| |
|
| |
|
Total | | 1,112,566 | | | 100.0 | | 1,212,055 | | | 100.0 | | (99,489 | ) | | 1,200,117 | | | 100.0 |
-9-
Kubota Corporation and Subsidiaries
Consolidated Balance Sheets
| Liabilities and Shareholders’ Equity | (In millions of yen) |
| | | Sept. 30, 2002
| | Sept. 30, 2001
| | Change
| | | Mar. 31, 2002
|
| | | Amount
| | | %
| | Amount
| | %
| | Amount
| | | Amount
| | | %
|
Current liabilities | | | | | | | | | | | | | | | | | |
| Short term borrowings | | 98,367 | | | | | 128,789 | | | | (30,422 | ) | | 122,977 | | | |
| Trade notes payable | | 30,769 | | | | | 46,460 | | | | (15,691 | ) | | 42,909 | | | |
| Trade accounts payable | | 137,175 | | | | | 137,257 | | | | (82 | ) | | 182,675 | | | |
| Advances received from customers | | 10,460 | | | | | 12,972 | | | | (2,512 | ) | | 7,886 | | | |
| Notes and accounts payable for capital expenditures | | 11,900 | | | | | 10,922 | | | | 978 | | | 15,746 | | | |
| Accrued payroll costs | | 22,730 | | | | | 24,748 | | | | (2,018 | ) | | 22,656 | | | |
| Income taxes payable | | 5,249 | | | | | 6,056 | | | | (807 | ) | | 12,587 | | | |
| Other current liabilities | | 55,217 | | | | | 52,582 | | | | 2,635 | | | 52,494 | | | |
| Current portion of long-term debt | | 70,417 | | | | | 68,776 | | | | 1,641 | | | 42,076 | | | |
| | |
|
| | | |
| | | |
|
| |
|
| | |
| Total current liabilities | | 442,284 | | | 39.7 | | 488,562 | | 40.3 | | (46,278 | ) | | 502,006 | | | 41.8 |
Long-term liabilities | | | | | | | | | | | | | | | | | |
| Long-term debt | | 134,429 | | | | | 164,923 | | | | (30,494 | ) | | 167,850 | | | |
| Accrued retirement and pension costs | | 127,321 | | | | | 117,826 | | | | 9,495 | | | 106,206 | | | |
| Other long-term liabilities | | 15,666 | | | | | 15,882 | | | | (216 | ) | | 16,537 | | | |
| | |
|
| | | |
| | | |
|
| |
|
| | |
| Total long-term liabilities | | 277,416 | | | 24.9 | | 298,631 | | 24.7 | | (21,215 | ) | | 290,593 | | | 24.2 |
Minority interest | | 12,867 | | | 1.2 | | 11,307 | | 0.9 | | 1,560 | | | 12,548 | | | 1.1 |
Shareholders’ equity | | | | | | | | | | | | | | | | | |
| Common stock | | 78,156 | | | | | 78,156 | | | | — | | | 78,156 | | | |
| Additional paid-in capital | | 87,263 | | | | | 87,263 | | | | — | | | 87,263 | | | |
| Legal reserve | | 19,539 | | | | | 19,539 | | | | — | | | 19,539 | | | |
| Retained earnings | | 224,896 | | | | | 224,774 | | | | 122 | | | 216,810 | | | |
| Accumulated other comprehensive income (loss) | | (16,077 | ) | | | | 3,823 | | | | (19,900 | ) | | 128 | | | |
| Treasury stock | | (13,778 | ) | | | | — | | | | (13,778 | ) | | (6,926 | ) | | |
| | |
|
| | | |
| | | |
|
| |
|
| | |
| Total shareholders’ equity | | 379,999 | | | 34.2 | | 413,555 | | 34.1 | | (33,556 | ) | | 394,970 | | | 32.9 |
| | |
|
| |
| |
| |
| |
|
| |
|
| |
|
Total | | 1,112,566 | | | 100.0 | | 1,212,055 | | 100.0 | | (99,489 | ) | | 1,200,117 | | | 100.0 |
10
Kubota Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
(In millions of yen)
| | | Six months ended Sept. 30, 2002
| | | Six months ended Sept. 30, 2001
| | | Year ended Mar. 31, 2002
| |
| Net income | | 12,259 | | | 13,264 | | | 9,530 | |
| | |
|
| |
|
| |
|
|
| Other comprehensive income (loss), net of tax | | | | | | | | | |
| Foreign currency translation adjustments | | (6,551 | ) | | 4,524 | | | 9,094 | |
| Unrealized gains (losses) on securities | | 1,462 | | | (19,887 | ) | | (32,187 | ) |
| Minimum pension liability adjustment | | (11,161 | ) | | (15,086 | ) | | (10,671 | ) |
| Unrealized gains (losses) on derivatives | | 45 | | | (10 | ) | | (390 | ) |
| | |
|
| |
|
| |
|
|
| Other comprehensive loss | | (16,205 | ) | | (30,459 | ) | | (34,154 | ) |
| | |
|
| |
|
| |
|
|
| Comprehensive loss | | (3,946 | ) | | (17,195 | ) | | (24,624 | ) |
Consolidated Statements of Shareholders’ Equity
| Six months ended Sept. 30, 2002 | (In millions of yen) |
| | | Shares of common stock outstanding (thousands)
| | | Common stock
| | Additional paid-in capital
| | Legal reserve
| | Retained earnings
| | | Accumulated other comprehensive income (loss)
| | | Treasury stock
| |
| Balance, Apr. 1, 2002 | | 1,390,419 | | | 78,156 | | 87,263 | | 19,539 | | 216,810 | | | 128 | | | (6,926 | ) |
| Net income | | | | | | | | | | | 12,259 | | | | | | | |
| Other comprehensive loss | | | | | | | | | | | | | | (16,205 | ) | | | |
Cash dividends, ¥15 per ADS
(5 common shares) | | | | | | | | | | | (4,173 | ) | | | | | | |
| Purchases of treasury stock | | (19,137 | ) | | | | | | | | | | | | | | (6,852 | ) |
| | |
|
| |
| |
| |
| |
|
| |
|
| |
|
|
| Balance, Sept. 30, 2002 | | 1,371,282 | | | 78,156 | | 87,263 | | 19,539 | | 224,896 | | | (16,077 | ) | | (13,778 | ) |
| Six months ended Sept. 30, 2001 | (In millions of yen) |
| | | Shares of common stock outstanding (thousands)
| | Common stock
| | Additional paid-in capital
| | Legal reserve
| | Retained earnings
| | | Accumulated other comprehensive income (loss)
| | | Treasury stock
|
| Balance, Apr. 1, 2001 | | 1,409,809 | | 78,156 | | 87,263 | | 19,539 | | 215,739 | | | 34,282 | | | — |
| Net income | | | | | | | | | | 13,264 | | | | | | |
| Other comprehensive loss | | | | | | | | | | | | | (30,459 | ) | | |
Cash dividends, ¥15 per ADS
(5 common shares) | | | | | | | | | | (4,229 | ) | | | | | |
| | |
| |
| |
| |
| |
|
| |
|
| |
|
| Balance, Sept. 30, 2001 | | 1,409,809 | | 78,156 | | 87,263 | | 19,539 | | 224,774 | | | 3,823 | | | — |
| Year ended Mar. 31, 2002 | (In millions of yen) |
| | | Shares of common stock outstanding (thousands)
| | | Common stock
| | Additional paid-in capital
| | Legal reserve
| | Retained earnings
| | | Accumulated other comprehensive income (loss)
| | | Treasury stock
| |
| Balance, Apr. 1, 2001 | | 1,409,809 | | | 78,156 | | 87,263 | | 19,539 | | 215,739 | | | 34,282 | | | — | |
| Net income | | | | | | | | | | | 9,530 | | | | | | | |
| Other comprehensive loss | | | | | | | | | | | | | | (34,154 | ) | | | |
Cash dividends, ¥30 per ADS
(5 common shares) | | | | | | | | | | | (8,459 | ) | | | | | | |
| Purchases of treasury stock | | (19,390 | ) | | | | | | | | | | | | | | (6,926 | ) |
| | |
|
| |
| |
| |
| |
|
| |
|
| |
|
|
| Balance, Mar. 31, 2002 | | 1,390,419 | | | 78,156 | | 87,263 | | 19,539 | | 216,810 | | | 128 | | | (6,926 | ) |
11
Kubota Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(In millions of yen)
| | | Six months ended Sept. 30, 2002
| | | Six months ended Sept. 30, 2001
| | | Change
| | | Year ended Mar. 31, 2002
| |
Operating activities | | | | | | | | | | | | |
| Net income | | 12,259 | | | 13,264 | | | | | | 9,530 | |
| Depreciation and amortization | | 18,844 | | | 20,132 | | | | | | 40,535 | |
| Provision for retirement and pension costs, less payments | | 759 | | | 1,052 | | | | | | 1,267 | |
| Loss on sales of securities | | (798 | ) | | (2,477 | ) | | | | | (2,578 | ) |
| Deferred income taxes | | (475 | ) | | 4,646 | | | | | | (5,591 | ) |
| Decrease in notes and accounts receivable | | 101,758 | | | 97,211 | | | | | | 12,752 | |
| Decrease in inventories | | 545 | | | 13,372 | | | | | | 23,260 | |
| Decrease in trade notes and accounts payable | | (55,910 | ) | | (59,963 | ) | | | | | (9,958 | ) |
| Decrease in income taxes payable | | (7,177 | ) | | (7,794 | ) | | | | | (1,310 | ) |
| Other | | (7,215 | ) | | (25,741 | ) | | | | | 9,919 | |
| | |
|
| |
|
| |
|
| |
|
|
| Net cash provided by operating activities | | 62,590 | | | 53,702 | | | 8,888 | | | 77,826 | |
Investing activities | | | | | | | | | | | | |
| Purchases of fixed assets | | (16,461 | ) | | (18,724 | ) | | | | | (32,473 | ) |
| Purchases of investments and change in advances | | (639 | ) | | (1,927 | ) | | | | | (2,333 | ) |
| Proceeds from sales of property, plant, and equipment | | 244 | | | 1,035 | | | | | | 2,002 | |
| Proceeds from sales of investments | | 3,113 | | | 7,425 | | | | | | 7,916 | |
| Other | | 399 | | | 43 | | | | | | (9,570 | ) |
| | |
|
| |
|
| |
|
| |
|
|
| Net cash used in investing activities | | (13,344 | ) | | (12,148 | ) | | (1,196 | ) | | (34,458 | ) |
Financing activities | | | | | | | | | | | | |
| Proceeds from long-term debt | | 20,331 | | | 12,354 | | | | | | 28,202 | |
| Repayments of long-term debt | | (25,577 | ) | | (29,356 | ) | | | | | (71,034 | ) |
| Net increase (decrease) in short-term borrowings | | (25,227 | ) | | 5,224 | | | | | | (2,846 | ) |
| Cash dividends | | (4,173 | ) | | (4,229 | ) | | | | | (8,459 | ) |
| Purchases of treasury stock | | (6,852 | ) | | — | | | | | | (6,926 | ) |
| Other | | (376 | ) | | (205 | ) | | | | | (231 | ) |
| | |
|
| |
|
| |
|
| |
|
|
| Net cash used in financing activities | | (41,874 | ) | | (16,212 | ) | | (25,662 | ) | | (61,294 | ) |
| Effect of exchange rate changes on cash and cash equivalents | | (472 | ) | | 71 | | | (543 | ) | | 276 | |
| | |
|
| |
|
| |
|
| |
|
|
Net increase (decrease) in cash and cash equivalents | | 6,900 | | | 25,413 | | | (18,513 | ) | | (17,650 | ) |
Cash and cash equivalents, beginning of period | | 60,983 | | | 78,633 | | | (17,650 | ) | | 78,633 | |
| | |
|
| |
|
| |
|
| |
|
|
Cash and cash equivalents, end of period | | 67,883 | | | 104,046 | | | (36,163 | ) | | 60,983 | |
| | |
|
| |
|
| |
|
| |
|
|
| Notes: | | | | | | | | | | | | |
| Cash paid | | | | | | | | | | | | |
| Interest | | 2,698 | | | 3,851 | | | (1,153 | ) | | 7,123 | |
| Income taxes | | 17,615 | | | 17,105 | | | 510 | | | 24,351 | |
| | |
|
| |
|
| |
|
| |
|
|
-12-
Kubota Corporation and Subsidiaries
Consolidated Segment Information
(1) Information by Industry Segments
| Six months ended Sept. 30, 2002 | (In millions of yen) |
| | | Internal Combustion Engine & Machinery
| | Pipes, Valves
& Industrial Castings
| | | Environmental Engineering
| | | Building Materials & Housing
| | | Other
| | | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated customers | | 239,605 | | 71,619 | | | 33,041 | | | 29,872 | | | 40,446 | | | 414,583 | | — | | | 414,583 |
| Intersegment | | 165 | | 2,759 | | | 618 | | | — | | | 9,236 | | | 12,778 | | (12,778 | ) | | — |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Total | | 239,770 | | 74,378 | | | 33,659 | | | 29,872 | | | 49,682 | | | 427,361 | | (12,778 | ) | | 414,583 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 203,606 | | 75,041 | | | 33,841 | | | 30,128 | | | 50,835 | | | 393,451 | | (3,279 | ) | | 390,172 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Operating income (loss) | | 36,164 | | (663 | ) | | (182 | ) | | (256 | ) | | (1,153 | ) | | 33,910 | | (9,499 | ) | | 24,411 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
|
| Six months ended Sept. 30, 2001 | | | | | | | | | | | | | (In millions of yen) |
| | | Internal Combustion Engine & Machinery
| | Pipes, Valves & Industrial Castings
| | | Environmental Engineering
| | | Building Materials & Housing
| | | Other
| | | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated customers | | 231,946 | | 81,919 | | | 31,632 | | | 59,280 | | | 49,742 | | | 454,519 | | — | | | 454,519 |
| Intersegment | | 102 | | 2,193 | | | 436 | | | 3 | | | 10,791 | | | 13,525 | | (13,525 | ) | | — |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Total | | 232,048 | | 84,112 | | | 32,068 | | | 59,283 | | | 60,533 | | | 468,044 | | (13,525 | ) | | 454,519 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 200,332 | | 79,312 | | | 31,440 | | | 58,784 | | | 60,377 | | | 430,245 | | (4,091 | ) | | 426,154 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Operating income | | 31,716 | | 4,800 | | | 628 | | | 499 | | | 156 | | | 37,799 | | (9,434 | ) | | 28,365 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
|
| Year ended Mar. 31, 2002 | | | | | | | | | | | | | (In millions of yen) |
| | | Internal Combustion Engine & Machinery
| | Pipes, Valves & Industrial Castings
| | | Environmental Engineering
| | | Building Materials & Housing
| | | Other
| | | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated customers | | 415,122 | | 184,540 | | | 147,988 | | | 110,859 | | | 107,282 | | | 965,791 | | — | | | 965,791 |
| Intersegment | | 402 | | 7,003 | | | 818 | | | 7 | | | 28,227 | | | 36,457 | | (36,457 | ) | | — |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Total | | 415,524 | | 191,543 | | | 148,806 | | | 110,866 | | | 135,509 | | | 1,002,248 | | (36,457 | ) | | 965,791 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 367,754 | | 180,308 | | | 140,925 | | | 123,867 | | | 134,722 | | | 947,576 | | (16,209 | ) | | 931,367 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
| Operating income (loss) | | 47,770 | | 11,235 | | | 7,881 | | | (13,001 | ) | | 787 | | | 54,672 | | (20,248 | ) | | 34,424 |
| | |
| |
|
| |
|
| |
|
| |
|
| |
| |
|
| |
|
-13-
Kubota Corporation and Subsidiaries
(2) Information by Geographic Segment
| Six months ended Sept. 30, 2002 | | (In millions of yen) |
| | | Japan
| | North America
| | Other Areas
| | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | |
| Unaffiliated customers | | 291,659 | | 93,618 | | 29,306 | | 414,583 | | — | | | 414,583 |
| Intersegment | | 55,621 | | 1,513 | | 506 | | 57,640 | | (57,640 | ) | | — |
| | |
| |
| |
| |
| |
|
| |
|
| Total | | 347,280 | | 95,131 | | 29,812 | | 472,223 | | (57,640 | ) | | 414,583 |
| | |
| |
| |
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 331,006 | | 85,271 | | 27,303 | | 443,580 | | (53,408 | ) | | 390,172 |
| | |
| |
| |
| |
| |
|
| |
|
| Operating income | | 16,274 | | 9,860 | | 2,509 | | 28,643 | | (4,232 | ) | | 24,411 |
| | |
| |
| |
| |
| |
|
| |
|
|
| Six months ended Sept. 30, 2001 | | (In millions of yen) |
| | | Japan
| | North America
| | Other Areas
| | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | |
| Unaffiliated customers | | 337,685 | | 88,930 | | 27,904 | | 454,519 | | — | | | 454,519 |
| Intersegment | | 42,730 | | 1,734 | | 406 | | 44,870 | | (44,870 | ) | | — |
| | |
| |
| |
| |
| |
|
| |
|
| Total | | 380,415 | | 90,664 | | 28,310 | | 499,389 | | (44,870 | ) | | 454,519 |
| | |
| |
| |
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 360,242 | | 79,351 | | 26,393 | | 465,986 | | (39,832 | ) | | 426,154 |
| | |
| |
| |
| |
| |
|
| |
|
| Operating income | | 20,173 | | 11,313 | | 1,917 | | 33,403 | | (5,038 | ) | | 28,365 |
| | |
| |
| |
| |
| |
|
| |
|
|
| Year ended Mar. 31, 2002 | | (In millions of yen) |
| | | Japan
| | North America
| | Other Areas
| | Total
| | Corporate & Eliminations
| | | Consolidated
|
| Net sales | | | | | | | | | | | | | |
| Unaffiliated customers | | 773,114 | | 143,959 | | 48,718 | | 965,791 | | — | | | 965,791 |
| Intersegment | | 103,428 | | 2,907 | | 656 | | 106,991 | | (106,991 | ) | | — |
| | |
| |
| |
| |
| |
|
| |
|
| Total | | 876,542 | | 146,866 | | 49,374 | | 1,072,782 | | (106,991 | ) | | 965,791 |
| | |
| |
| |
| |
| |
|
| |
|
| Cost of sales and operating expenses | | 841,152 | | 129,213 | | 46,596 | | 1,016,961 | | (85,594 | ) | | 931,367 |
| | |
| |
| |
| |
| |
|
| |
|
| Operating income | | 35,390 | | 17,653 | | 2,778 | | 55,821 | | (21,397 | ) | | 34,424 |
| | |
| |
| |
| |
| |
|
| |
|
(3) Overseas Sales
| Six months ended Sept. 30, 2002 | | (In millions of yen) |
| | | North America
| | | Other Areas
| | | Total
| |
| Overseas sales | | 93,345 | | | 41,305 | | | 134,650 | |
| | |
|
| |
|
| |
|
|
| Consolidated net sales | | | | | | | | 414,583 | |
| | |
|
| |
|
| |
|
|
| Ratio of overseas sales to consolidated net sales | | 22.5 | % | | 10.0 | % | | 32.5 | % |
| | |
|
| |
|
| |
|
|
|
| Six months ended Sept. 30, 2001 | | (In millions of yen) |
| | | North America
| | | Other Areas
| | | Total
| |
| Overseas sales | | 88,419 | | | 37,994 | | | 126,413 | |
| | |
|
| |
|
| |
|
|
| Consolidated net sales | | | | | | | | 454,519 | |
| | |
|
| |
|
| |
|
|
| Ratio of overseas sales to consolidated net sales | | 19.4 | % | | 8.4 | % | | 27.8 | % |
| | |
|
| |
|
| |
|
|
|
| Year ended Mar. 31, 2002 | | (In millions of yen) |
| | | North America
| | | Other Areas
| | | Total
| |
| Overseas sales | | 144,207 | | | 68,409 | | | 212,616 | |
| | |
|
| |
|
| |
|
|
| Consolidated net sales | | | | | | | | 965,791 | |
| | |
|
| |
|
| |
|
|
| Ratio of overseas sales to consolidated sales | | 14.9 | % | | 7.1 | % | | 22.0 | % |
| | |
|
| |
|
| |
|
|
-14-
Kubota Corporation and Subsidiaries
Fair Value of Short-Term and Other Investments
The Company classifies its holding marketable equity securities and all of its debt securities as available for sale securities, which are reported by their fair value on the Company's balance sheets. The following table presents cost, fair value, and net unrealized holding gains (losses) for securities by major security type at September 30, 2002, September 30, 2001, and March 31, 2002.
| | | (In millions of yen) |
| | | Sept. 30, 2002
| | Sept. 30, 2001
| | | Mar. 31, 2002
|
| | | Cost
| | Fair value
| | Gross unrealized holding gains
| | Cost
| | Fair value
| | Gross unrealized holding gains and losses
| | | Cost
| | Fair value
| | Gross unrealized holding gains
|
Short term investments: | | | | | | | | | | | | | | | | | | | |
| Governmental and corporate debt securities and other | | 1,249 | | 1,249 | | — | | 2,011 | | 2,011 | | — | | | 1,394 | | 1,394 | | — |
|
Other investments: | | | | | | | | | | | | | | | | | | | |
| Equity securities of financial institutions | | 48,405 | | 77,350 | | 28,945 | | 55,942 | | 100,813 | | 44,871 | | | 48,726 | | 68,720 | | 19,994 |
| Other equity securities | | 22,728 | | 35,449 | | 12,721 | | 26,081 | | 41,362 | | 15,281 | | | 25,620 | | 44,582 | | 18,962 |
| Other | | 1,593 | | 1,602 | | 9 | | 9,125 | | 9,033 | | (92 | ) | | 2,391 | | 2,392 | | 1 |
| | |
| |
| |
| |
| |
| |
|
| |
| |
| |
|
Total | | 73,975 | | 115,650 | | 41,675 | | 93,159 | | 153,219 | | 60,060 | | | 78,131 | | 117,088 | | 38,957 |
| | |
| |
| |
| |
| |
| |
|
| |
| |
| |
|
-15-
Kubota Corporation and Subsidiaries
Notes:
| 1. | | The United States dollar amounts included herein represent translations using the approximate exchange rate on September 30, 2002, of ¥123 = US$1, solely for convenience. |
| 2. | | Each American Depositary Share (“ADS”) represents 5 common shares. |
| 3. | | 118 subsidiaries are consolidated. |
| Major consolidated subsidiaries: | | Domestic | | Kubota Construction Co., Ltd. |
| | | | | Kubota Credit Co., Ltd. |
| | | | | Kubota Lease Corporation |
| | | | | Kubota Environmental Service Co., Ltd. |
| | | Overseas | | Kubota Tractor Corporation |
| | | | | Kubota Credit Corporation, U.S.A. |
| | | | | Kubota Manufacturing of America Corporation |
| | | | | Kubota Engine America Corporation |
| | | | | Kubota Metal Corporation |
| | | | | Kubota Baumaschinen GmbH |
| | | | | Kubota Europe S.A. |
| 4. | | Investments in 49 affiliated companies are accounted for by the equity method. |
| Major affiliated companies : | | Domestic | | 32 sales companies of farm equipment |
| | | Overseas | | The Siam Kubota Industry Co., Ltd. |
| 5. | | Summary of accounting policies |
| | (1) | | The accompanying consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States of America except for the presentation for segment information described in (2). |
| | (2) | | The consolidated segment information is prepared in accordance with a requirement of the Japanese Securities and Exchange regulations. This disclosure is not consistent with SFAS No.131, “Disclosures about Segments of an Enterprise and Related Information”. |
| 6. | | Adoption of new accounting standards |
Kubota Corporation adopted Emerging Issues Task Force 01-9, “Accounting for Consideration Given by a Vendor to a Consumer (including a Reseller of the Vendor’s Products)” from the six months ended September 30, 2002. As a result, sales incentives previously classified as selling, general, and administrative expenses for the six months ended September 30, 2001 and the year ended March 31, 2002 have been reclassified as a reduction of revenues to conform to the presentation for the six months ended September 30, 2002. The impact of this change on the operating income and net income of the Company is not material.
7. From the information for the six months ended September 30, 2002, in order to clarify the relationship between management structure and industry segments, the Company changed the number of its industry segments from three to five. The new five industry segments are as follows ; “Internal Combustion Engine & Machinery”, “Pipes, Valves & Industrial Castings”, “Environmental Engineering”, “Building Materials & Housing”, and “Other”. Due to this change, the amounts presented in the segment information for the six months ended September 30, 2001 and the year ended March 31, 2002 have been reclassified to conform to the presentation for the six months ended September 30, 2002.
8. Reclassification
The consolidated financial reports for the prior period have been reclassified to conform to the presentation for the
six months ended September 30, 2002.
-16-
Kubota Corporation and Subsidiaries
Consolidated Net Sales by Product Group
(In millions of yen)
| | | Six months ended Sept. 30, 2002
| | Six months ended Sept. 30, 2001
| | Change
| | | Year ended
Mar. 31, 2002
|
| | | Amount
| | %
| | Amount
| | %
| | Amount
| | | %
| | | Amount
| | %
|
| Farm Equipment and Engines | | 105,085 | | | | 104,186 | | | | 899 | | | 0.9 | | | 198,120 | | |
| Construction Machinery | | 9,494 | | | | 9,710 | | | | (216 | ) | | (2.2 | ) | | 20,072 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Internal Combustion Engine & Machinery | | 114,579 | | 27.6 | | 113,896 | | 25.0 | | 683 | | | 0.6 | | | 218,192 | | 22.6 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes and Valves | | 55,682 | | | | 64,440 | | | | (8,758 | ) | | (13.6 | ) | | 147,502 | | |
| Industrial Castings | | 8,617 | | | | 11,433 | | | | (2,816 | ) | | (24.6 | ) | | 25,920 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes, Valves & Industrial Castings | | 64,299 | | 15.5 | | 75,873 | | 16.7 | | (11,574 | ) | | (15.3 | ) | | 173,422 | | 18.0 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Environmental Engineering | | 31,909 | | 7.7 | | 29,706 | | 6.6 | | 2,203 | | | 7.4 | | | 144,940 | | 15.0 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Building Materials | | 29,207 | | | | 28,441 | | | | 766 | | | 2.7 | | | 56,676 | | |
| Housing | | 665 | | | | 30,839 | | | | (30,174 | ) | | (97.8 | ) | | 54,183 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Building Materials & Housing | | 29,872 | | 7.2 | | 59,280 | | 13.0 | | (29,408 | ) | | (49.6 | ) | | 110,859 | | 11.5 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Other | | 39,274 | | 9.5 | | 49,351 | | 10.9 | | (10,077 | ) | | (20.4 | ) | | 105,762 | | 10.9 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
| Domestic Total | | 279,933 | | 67.5 | | 328,106 | | 72.2 | | (48,173 | ) | | (14.7 | ) | | 753,175 | | 78.0 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
| Farm Equipment and Engines | | 112,381 | | | | 107,101 | | | | 5,280 | | | 4.9 | | | 178,886 | | |
| Construction Machinery | | 12,645 | | | | 10,949 | | | | 1,696 | | | 15.5 | | | 18,044 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Internal Combustion Engine & Machinery | | 125,026 | | 30.2 | | 118,050 | | 26.0 | | 6,976 | | | 5.9 | | | 196,930 | | 20.4 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes and Valves | | 3,134 | | | | 2,250 | | | | 884 | | | 39.3 | | | 3,849 | | |
| Industrial Castings | | 4,186 | | | | 3,796 | | | | 390 | | | 10.3 | | | 7,269 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes, Valves & Industrial Castings | | 7,320 | | 1.8 | | 6,046 | | 1.3 | | 1,274 | | | 21.1 | | | 11,118 | | 1.1 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Environmental Engineering | | 1,132 | | 0.3 | | 1,926 | | 0.4 | | (794 | ) | | (41.2 | ) | | 3,048 | | 0.3 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Other | | 1,172 | | 0.2 | | 391 | | 0.1 | | 781 | | | 199.7 | | | 1,520 | | 0.2 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
| Overseas Total | | 134,650 | | 32.5 | | 126,413 | | 27.8 | | 8,237 | | | 6.5 | | | 212,616 | | 22.0 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
| Farm Equipment and Engines | | 217,466 | | | | 211,287 | | | | 6,179 | | | 2.9 | | | 377,006 | | |
| Construction Machinery | | 22,139 | | | | 20,659 | | | | 1,480 | | | 7.2 | | | 38,116 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Internal Combustion Engine & Machinery | | 239,605 | | 57.8 | | 231,946 | | 51.0 | | 7,659 | | | 3.3 | | | 415,122 | | 43.0 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes and Valves | | 58,816 | | | | 66,690 | | | | (7,874 | ) | | (11.8 | ) | | 151,351 | | |
| Industrial Castings | | 12,803 | | | | 15,229 | | | | (2,426 | ) | | (15.9 | ) | | 33,189 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Pipes, Valves & Industrial Castings | | 71,619 | | 17.3 | | 81,919 | | 18.0 | | (10,300 | ) | | (12.6 | ) | | 184,540 | | 19.1 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Environmental Engineering | | 33,041 | | 8.0 | | 31,632 | | 7.0 | | 1,409 | | | 4.5 | | | 147,988 | | 15.3 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Building Materials | | 29,207 | | | | 28,441 | | | | 766 | | | 2.7 | | | 56,676 | | |
| Housing | | 665 | | | | 30,839 | | | | (30,174 | ) | | (97.8 | ) | | 54,183 | | |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Building Materials & Housing | | 29,872 | | 7.2 | | 59,280 | | 13.0 | | (29,408 | ) | | (49.6 | ) | | 110,859 | | 11.5 |
| | |
| | | |
| | | |
|
| | | | |
| | |
| Other | | 40,446 | | 9.7 | | 49,742 | | 11.0 | | (9,296 | ) | | (18.7 | ) | | 107,282 | | 11.1 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
| Grand Total | | 414,583 | | 100.0 | | 454,519 | | 100.0 | | (39,936 | ) | | (8.8 | ) | | 965,791 | | 100.0 |
| | |
| |
| |
| |
| |
|
| |
|
| |
| |
|
Anticipated Consolidated Net Sales by Industry Segment
(In billions of yen)
| | | Year ending
Mar. 31, 2003
| | Year ended
Mar. 31, 2002
| | Change
| |
| | | Amount
| | %
| | Amount
| | %
| | Amount
| | | %
| |
| Domestic | | 223.0 | | | | 218.2 | | | | 4.8 | | | 2.2 | |
| Overseas | | 217.0 | | | | 196.9 | | | | 20.1 | | | 10.2 | |
| | |
| | | |
| | | |
|
| | | |
| Internal Combustion Engine & Machinery | | 440.0 | | 47.3 | | 415.1 | | 43.0 | | 24.9 | | | 6.0 | |
| Domestic | | 162.0 | | | | 173.4 | | | | (11.4 | ) | | (6.6 | ) |
| Overseas | | 17.0 | | | | 11.1 | | | | 5.9 | | | 53.2 | |
| | |
| | | |
| | | |
|
| | | |
| Pipes, Valves & Industrial Castings | | 179.0 | | 19.3 | | 184.5 | | 19.1 | | (5.5 | ) | | (3.0 | ) |
| | |
| | | |
| | | |
|
| | | |
| Domestic | | 145.0 | | | | 144.9 | | | | 0.1 | | | 0.1 | |
| Overseas | | 2.0 | | | | 3.1 | | | | (1.1 | ) | | (35.5 | ) |
| | |
| | | |
| | | |
|
| | | |
| Environmental Engineering | | 147.0 | | 15.8 | | 148.0 | | 15.3 | | (1.0 | ) | | (0.7 | ) |
| | |
| | | |
| | | |
|
| | | |
| Domestic | | 65.0 | | | | 110.9 | | | | (45.9 | ) | | (41.4 | ) |
| Overseas | | — | | | | — | | | | — | | | — | |
| | |
| | | |
| | | |
|
| | | |
| Building Materials & Housing | | 65.0 | | 7.0 | | 110.9 | | 11.5 | | (45.9 | ) | | (41.4 | ) |
| | |
| | | |
| | | |
|
| | | |
| Domestic | | 97.0 | | | | 105.8 | | | | (8.8 | ) | | (8.3 | ) |
| Overseas | | 2.0 | | | | 1.5 | | | | 0.5 | | | 33.3 | |
| | |
| | | |
| | | |
|
| | | |
| Other | | 99.0 | | 10.6 | | 107.3 | | 11.1 | | (8.3 | ) | | (7.7 | ) |
| | |
| |
| |
| |
| |
|
| | | |
| Grand Total | | 930.0 | | 100.0 | | 965.8 | | 100.0 | | (35.8 | ) | | (3.7 | ) |
| | |
| |
| |
| |
| |
|
| |
|
|
| Domestic | | 692.0 | | 74.4 | | 753.2 | | 78.0 | | (61.2 | ) | | (8.1 | ) |
| Overseas | | 238.0 | | 25.6 | | 212.6 | | 22.0 | | 25.4 | | | 11.9 | |
17
Kubota Corporation
Contact:
IR Group
Kubota Corporation
2-47, Shikitsuhigashi 1-chome,
Naniwa-ku, Osaka 556-8601, Japan
Phone: (81)-6-6648-2645
Fax: (81)-6-6648-2642
Announcement of non-consolidated business results for the first six months
ended September 30, 2002 of Kubota Corporation (Parent company only)
|
| (1) The date of the Board of Directors’ Meeting: | | November 13, 2002 |
|
| (2) Payment date of interim dividends: | | December 10, 2002 |
| (3) Results of income | | (In millions of yen except per ADS information) |
| | | Six months ended September 30, 2002
| | Change (*)
| | | Six months ended September 30, 2001
| | Change (*)
| | | Year ended March 31, 2002
|
| Net sales | | ¥ | 289,692 | | 1.0 | % | | ¥ | 286,853 | | (5.5 | )% | | ¥ | 672,576 |
| Operating income | | ¥ | 4,535 | | 12.9 | % | | ¥ | 4,017 | | (36.4 | )% | | ¥ | 27,556 |
| Ordinary income | | ¥ | 3,021 | | 24.7 | % | | ¥ | 2,423 | | (66.8 | )% | | ¥ | 23,967 |
| Net income | | ¥ | 2,910 | | (14.9 | )% | | ¥ | 3,421 | | — | | | ¥ | 136 |
| Net income per ADS common shares) | | ¥ | 11 | | — | | | ¥ | 12 | | — | | | ¥ | 0 |
| (*) | | represents percentage change from the comparable previous period. |
| Notes to results of income : (**) | | |
| Weighted average number of shares outstanding during the six months ended September 30, 2002 | | 1,383,036,576 |
| Weighted average number of shares outstanding during the six months ended September 30, 2001 | | 1,409,808,978 |
| Weighted average number of shares outstanding during the year ended March 31, 2002 | | 1,405,888,248 |
| (**) | | The number of treasury stock is deducted from weighted average number of shares outstanding during the six months ended September 30, 2002 and the year ended March 31, 2002. |
-18-
Kubota Corporation
| (4) Financial position | | (In millions of yen except per ADS information) |
| | | September 30, 2002
| | | September 30, 2001
| | | March 31, 2002
| |
| Total assets | | ¥ | 851,269 | | | ¥ | 914,340 | | | ¥ | 943,258 | |
| Shareholders’ equity | | ¥ | 365,603 | | | ¥ | 398,335 | | | ¥ | 371,785 | |
| Ratio of shareholders’ equity to total assets | | | 42.9 | % | | | 43.6 | % | | | 39.4 | % |
| Shareholders’ equity per ADS (5 common shares) | | ¥ | 1,332 | | | ¥ | 1,413 | | | ¥ | 1,336 | |
|
| Notes to financial position: (*) | | |
| Number of shares outstanding as of September 30, 2002 | | 1,371,921,562 |
| Number of shares outstanding as of September 30, 2001 | | 1,409,808,978 |
| Number of shares outstanding as of March 31, 2002 | | 1,391,067,146 |
| | (*) | | The number of treasury stock is deducted from the number of shares outstanding as of September 30, 2002 and March 31, 2002. |
| (5) Anticipated annual results of operations | | (In millions of yen except per share information) |
| | | Year ending March 31, 2003
|
| Net sales | | ¥ | 685,000 |
| Ordinary income | | ¥ | 24,000 |
| Net income | | ¥ | 12,000 |
| Annual dividends per ADS (5 common shares) | | ¥ | 30 |
| Net income per ADS (5 common shares) | | ¥ | 44 |
(**) Including interim dividends which will be paid on December 10, 2002.
(6) Cash dividends
| Interim cash dividends per ADS (5 common shares) for the six months ended September 30, 2002 | | ¥ | 15 |
|
| Interim cash dividends per ADS (5 common shares) for the six months ended September 30, 2001 | | ¥ | 15 |
|
| Cash dividends per ADS (5 common shares) for the fiscal year ended March 31, 2002 | | ¥ | 30 |
Notes:
| | 1. | | The above non-consolidated financial information is based upon the accounting principles generally accepted in Japan. |
| | 2. | | All amounts in this financial information have been rounded down except per ADS information. |
-19-
November 13, 2002
To whom it may concern
KUBOTA CORPORATION
2-47, Shikitsu-higashi 1-chome,
Naniwa-ku, Osaka 556-8601, Japan
Contact: IR Group
Finance & Accounting Department
Phone: +81-6-6648-2645
Notice with reference to the implementation of Voluntary Early Retirement Program
Please be advised that Kubota Corporation decided it would implement the Voluntary Early Retirement Program as below-mentioned.:
1. Reason for the implementation:
In order to fortify business structure through streamlining surplus headcount
2. Overview of the program:
(1) Application | | : Voluntary |
(2) Eligible employee | | : Employees at age between 45 and 60 |
(3) Retirement payment | | : Special retirement allowance to be paid in addition to the ordinary retirement allowance |
(4) Application period | | : From January 10, 2003 to February 15, 2003 |
(5) Implementation period | | : From February 1, 2003 to March 31, 2003 |
3. Outlook:
The Company forecasts the number of applicants will range between 200 and 300. The Company also estimates that approximately ¥4.0 billion of extraordinary loss would be accrued through the implementation.
(Reference)
Forecasts and actual results of operations(Parent company only)
(In millions of yen) | | Sales
| | Ordinary Income
| | Net Income
|
| Forecasts for the year ending March 31, 2003 | | 685,000 | | 24,000 | | 12,000 |
| Actual results for the year ended March 31, 2002 | | 672,576 | | 23,967 | | 136 |
-20-
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.
| | | KUBOTA CORPORATION |
|
| Date: November 18, 2002 | | By: | | /s/ DAISUKE HATAKAKE
|
| | | Name: | | Daisuke Hatakake |
| | | Title: | | Managing Director Principal Financial And Accounting Officer |
