Akebono Brake Announces Financial Results for First Half of FY 2006 <7238.T>
<http://www.japancorp.net/?page_num=1> JapanCorp: Akebono Brake Announces Financial Results for First Half of FY 2006 <7238.T> Tokyo, Japan, Oct. 30, 2006 - (JCN Newswire) - Akebono Brake Industry Co., Ltd. today announced consolidated financial results for the first half of the fiscal year ending March 31, 2007. In the six months through September, net sales totaled 86.2 billion, an increase of 21.9 billion yen compared to the same period last year. Operating profit rose by 1.5 billion yen to 6.1 billion yen, and ordinary profit increased by 0.4 billion yen to 5.1 billion yen. Net profit for the period was 2.8 billion yen, a 0.7 billion yen increase compared to the previous year. ------------------------------------------------------------------------ (Billions yen) FY2006 H1 FY2005 H1 Change ------------------------------------------------------------------------ Net sales 86.2 64.3 +21.9 Operating profit 6.1 4.6 +1.5 Ordinary profit 5.1 4.7 +0.4 Net profit 2.8 2.1 +0.7 Net profit per share (1H, yen) 26.30 21.21 +5.09 Total assets 149.4 126.2 +23.2 Net assets 46.7 35.0 +11.8 Equity ratio (%) 28.2 27.7 +0.5 Net assets per share (yen) 392.77 27.69 +65.08 ------------------------------------------------------------------------ Regional Overview Japan Sales and profits decreased compared to the previous period, due to a lower than expected performance among some automakers and higher material procurement costs. As a result, net sales decreased by 3.3 billion yen to 46.8 billion yen, and operating profit fell by 0.8 billion yen to 3.7 billion yen. North America Sales and profits sharply increased compared to the previous period, due to the effect of a stake increase in a consolidated subsidiary (Ambrake Corporation) and an overall increase in orders, as Japanese automakers in the region made advances and orders increased from the Big 3. As a result, net sales increased by 20.6 billionto 34.2 billion yen and ordinary profit rose by 2.2. billion yen to 2.4 billion yen. Europe and others (Europe, China, Southeast Asia) Net sales for the region increased by 4.6 billion yen to 5.2 billion yen and operating profit rose by 0.2 billion yen to 0.0 billion yen, owing to steady business progress and cost reduction efforts, in addition to the effect of a stake increase in a consolidated subsidiary (PT. Tri Dharma Wisesa). Financial Position Cash Flow The closing balance of cash and cash equivalents on a consolidated basis for the first half of the fiscal year ending March 31, 2007 was 3.6 billion yen, a decrease of 1.5 billion yen compared to last year, resulting from the following activities. Free cash flow was 1.1 billion yen. Cash flow through operating activities Net cash from operating activities was 3.9 billion yen. Contributing factors include net income before taxes and other adjustments of 5.0 billion yen for the period, depreciation of 4.4 billion yen, and paid income taxes of 3.6 billion yen. Cash flow through investing activities Net cash used in investment activities was 2.8 billion yen. Main factors impacting the figure were outflows of 2.6 billion yen to acquire tangible fixed assets and 1.0 billion yen in IT-related investments to acquire intangible fixed assets, and 0.9 billion yen in proceeds from the sale of investment securities. Cash flow through financing activities Net cash used in financing activities was 2.7 billion yen. Contributing factors include 4.8 billion yen in repayment of long-term borrowings, 7.4 billion yen in proceeds from long-term borrowings, 3.0 billion yen in repayment of short-term borrowings, and 0.6 billion yen in paid dividends. Forecast for FY 2006 (fiscal year ending March 31, 2007) While Japan showed continued signs of gradual economic recovery thanks to increased corporate profits and higher capital expenditures, a number of unpredictable factors remain, including the continued steep rise of material and oil prices from last year and an uncertain economic outlook in North America, especially in the auto industry. Amidst these circumstances, the Akebono Group is endeavoring to meet its financial targets. Consolidated forecasts for the fiscal year ending March 31, 2007 are net sales of 172.0 billion yen, operating profit of 14.0 billion yen, ordinary profit of 13.2 billion yen and a net profit of 7.5 billion yen. ------------------------------------------------------------------------ (Billions yen) FY 2006 FY 2005 Change forecast results ------------------------------------------------------------------------ Net sales 172.0 142.3 +29.7 Operating profit 14.0 11.7 +2.3 Ordinary profit 12.4 11.0 +1.4 Net profit 7.5 5.9 +1.6 ------------------------------------------------------------------------ About Akebono Brake Industry Co., Ltd. Akebono Brake Industry, Co., Ltd. , established in 1929, is a world leader in advanced brake and friction material development and production. Akebono's portfolio includes brake products for automobiles, motorbikes, rolling stock, and industrial machinery, and sensor products for automobiles. The Akebono Group operates R&D centers in Japan, the United States and France, and has wholly owned or affiliated manufacturing facilities in Japan, the United States, France, China and Indonesia. Akebono recorded net sales of 142.3 billion yen in the fiscal year ended March 31, 2006, and employs over 6,000 people worldwide on a consolidated basis. For more information, please visit www.akebono-brake.co.jp For further information, please visit the Akebono Brake Industry Co., Ltd. home page at: www.akebono-brake.co.jp <http://www.akebono-brake.co.jp> Contact Akebono Brake Industry Co., Ltd. Corporate Communications Office Matthew Nicholson Tel: +81-3-3668-5183 Fax: +81-3-5695-7391 _____ Oct. 30, 2006, 16:20 (JST) Source: Akebono Brake Industry Co., Ltd. Akebono Brake Industry Co., Ltd. www.akebono-brake.co.jp <http://www.akebono-brake.co.jp> From the Japan Corporate News Network View <http://www.japancorp.net/company_show.asp?compid=61> Akebono Brake Industry Co., Ltd. 's Company Profile On JCN Network www.japancorp.net <http://www.japancorp.net> Topic: Press release summary Sectors: Auto, Earnings Copyright © 2006 JCN Network <http://www.japancorp.net> . A division of Japan Corporate News Network KK. All rights reserved. If you believe you have received this news in error or would like to be removed from our mailing list please respond here <https://www.japancorp.net/unsubscribe.asp> (https://www.japancorp.net/unsubscribe.asp) and you will be removed from our mailing list. If you have difficulty viewing our News Alerts in HTML format you can change your settings here <https://www.japancorp.net/changeregister.asp> (https://www.japancorp.net/changeregister.asp).