UNITED STATES 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 July, 2008

Commission file number 0-12602

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 Form 20-F or Form 40-F.

Form 20-F x     Form 40-F o

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): x

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): 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 x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-        

 

 

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.

Date: July 31, 2008

Makita Corporation

Consolidated Financial Results
for the three months ended June 30, 2008
(U.S. GAAP Financial Information)

(English translation of “KESSAN TANSHIN”
originally issued in Japanese language)

CONSOLIDATED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED JUNE 30, 2008

July 31, 2008

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

1. Results of the three months ended June 30, 2008 (From April 1, 2008 to June 30, 2008)

(1) CONSOLIDATED OPERATING RESULTS

		Yen (millions)
		For the three months ended												For the three months ended
		June 30, 2007												June 30, 2008
										%												%
Net sales			80,615								30.1				84,636								5.0
Operating income			14,992								43.1				17,091								14.0
Income before income taxes			15,417								39.4				16,677								8.2
Net income			11,243								43.8				11,781								4.8
		Yen
Net income per share:							78.24												82.81

Notes:			1.			Amounts of less than one million yen have been rounded.
			2.			The table above shows the changes 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) CONSOLIDATED FINANCIAL POSITION

		Yen (millions)
		As of March 31, 2008				As of June 30, 2008
Total assets			386,467				390,946
Shareholders’ equity			316,498				318,561
Shareholders’ equity ratio to total assets (%)			81.9	%			81.5	%
		Yen
Shareholders’ equity per share			2,201.36				2,262.96

2. Dividend information

		Yen
		For the year ended March				For the year ending March
		31, 2008				31, 2009 (Forecast)
Cash dividend per share:
Interim			30.00				30.00
Year-end			67.00			(Note)
Total			97.00			(Note)

Notes:			1.			The forecast for cash dividend announced on April 30, 2008 has not been revised.
			2.			While the Company has set forth under the Articles of Corporation of the Company that the record date for the payment of dividend shall be the last day of a relevant period, at the present time, the projected amount of dividends as of the said record date has not yet been determined. For further details, refer to “Explanation regarding proper use of business forecasts, and other significant matters” on page 2.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

3. Consolidated financial forecast for the year ending March 31, 2009 (From April 1, 2008 to March 31, 2009)

		Yen (millions)
		For the six months ending																For the year ending
		September 30, 2008																March 31, 2009
										%																%
Net sales			169,500								(0.0	)							343,000								0.1
Operating income			31,600								(6.8	)							64,000								(4.5	)
Income before income taxes			30,700								(10.9	)							63,000								(4.2	)
Net income			20,500								(13.1	)							42,000								(8.8	)
														Yen
Net income per share							145.63																298.35

Note: The consolidated financial forecast for the year ending March 31, 2009 has not been revised.

4. Other

(1)		Changes in important subsidiaries during the period (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None
(2)		Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements:
		Note: Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 3.
(3)		Changes in principle, procedure and representation of the accounting policies concerning quarterly consolidated financial statements preparation:
		Note: Refer to [Qualitative Information and Financial Statements] Section 4 “Other” on page 3.
(4)		Number of shares outstanding (common stock)

1. Number of shares issued (including treasury stock):	As of June 30, 2008:	144,008,760
	As of March 31, 2008:	144,008,760
2. Number of treasury stock:	As of June 30, 2008:	3,236,709
	As of March 31, 2008:	235,135
3. Average number of shares outstanding:	As of June 30, 2008:	142,272,994
	As of June 30, 2007:	143,699,966

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

[Qualitative Information and Financial Statements]

1. Qualitative information on consolidated operating results

     Net sales in this first quarter were 84,636 million yen, an increase of 5.0% compared to the same quarter of the previous year, as sales strength continued in emerging markets including Eastern Europe, Russia, Latin America, and the Middle East, which were partially offset by the sales decreases in the U.S. and Japan, where investments in the housing sector were weak.

     With regard to earnings, operating income amounted to 17,091 million yen (ratio of operating income to net sales; 20.2%), up 14.0% from the same quarter of the previous year, income before income taxes amounted to 16,677 million yen (ratio of income before income taxes to net sales; 19.7%), up 8.2% and net income for the quarter amounted to 11,781 million yen (ratio of net income to net sales; 13.9%), up 4.8%.

     Net sales by geographic area were as follows;

     In Japan, as the long-stagnant new housing starts have not yet recovered in full, the sales decreased by 5.3% from the same quarter of the previous year to 11,447 million yen.

     In Europe, while the growth rate of demand in Western Europe slowed down, the sales in Eastern Europe and Russia continued to be solid, resulting in 40,835 million yen, an increase of 8.5%.

     In North America, in addition to the fact that the severe downturn in the U.S. housing market continues, in the foreign exchange market, U.S. dollar moved significantly weaker against Japanese yen in comparison with the rate of the same period of the previous year, which resulted in a decrease of 16.3% to 11,440 million yen.

     In Asia, the business in Southeast Asia showed strong results, recording an increase of 29.8% to 7,036 million yen.

     In other regions, as strong economies benefiting from soaring prices of natural resources still continue, the sales in Central and South America were up by 29.6% to 4,960 million yen, the sales in the Middle East and Africa rose by 19.5% to 4,826 million yen, and the sales in Oceania were higher by 4.0% to 4,092 million yen.

2. Qualitative information on consolidated financial position

          (Analysis on assets, liabilities and shareholders’ equity)

     Total assets as of the end of this first quarter amounted to 390,946 million yen, which was an increase of 1.2% from the end of the previous year. Key factors for this included the increase in inventories carried out in anticipation of sales increases, and the increase in fixed assets associated with facilities and equipment at overseas plants.

     Liabilities rose by 3.1% compared to the previous year-end to 69,535 million yen. The main reason for this increase was an increase in long-term deferred income taxes liabilities mainly as a result of the appreciation of the fair value of the securities investment portfolio of the Company.

     Shareholders’ equity was up by 0.7% compared to the previous year to 318,561 million yen.

3. Qualitative information on consolidated financial forecast

     Despite generally solid emerging markets, as the market environments in Japan as well as in the U.S. are expected to remain severe, and the sense of deceleration in demand in Western European markets are expected to increase, the management environment surrounding Makita remains unpredictably challenging. In light of such uncertain circumstances, at the present time, the Company will not make any change to its forecast announced on April 30, 2008 for the results for six months ending September 30, 2008 and the results for the year ending March 31, 2009.

4. Other

(1)

Changes in important subsidiaries during the period (Changes in specific subsidiaries accompanied by changes in scope of consolidation): None

(2)

Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly consolidated financial statements:

With regard to the income tax expenses, the Company computes interim income tax expense (benefit) by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes for the fiscal first quarter ended June 30, 2008.

(3)

Changes in principle, procedure and representation of the accounting policies concerning quarterly consolidated financial statements preparation:

Starting with this fiscal year, the Company has adopted the “Fair Value Measurements” pursuant to the Statement of Financial Accounting Standards No. 157. This Statement defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The adoption did not give rise to any material effect on the Company’s consolidated financial position or results of operations.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

5. Quarterly consolidated financial statements

(1) Quarterly consolidated balance sheets

		Yen (millions)
		As of March								As of June
		31, 2008								30, 2008
		Composition ratio (%)								Composition ratio (%)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents			46,306								42,780
Time deposits			2,393								2,855
Marketable securities			49,443								31,686
Trade receivables-
Notes			2,950								3,519
Accounts			60,234								62,709
Less- Allowance for doubtful receivables			(1,018	)							(1,071	)
Inventories			112,187								125,747
Deferred income taxes			6,478								6,203
Prepaid expenses and other current assets			11,382								13,576
Total current assets			290,355				75.1	%			288,004				73.7	%
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land			18,370								18,640
Buildings and improvements			64,268								64,461
Machinery and equipment			75,651								79,254
Construction in progress			2,765								5,845
			161,054								168,200
Less- Accumulated depreciation			(91,996	)							(93,802	)
			69,058				17.9	%			74,398				19.0	%
INVESTMENTS AND OTHER ASSETS:
Investment securities			18,034								19,459
Goodwill			2,001								1,998
Other intangible assets, net			2,240								2,400
Deferred income taxes			1,826								1,362
Other assets			2,953								3,325
			27,054				7.0	%			28,544				7.3	%
			386,467				100.0	%			390,946				100.0	%

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

		Yen (millions)
		As of March								As of June
		31, 2008								30, 2008
		Composition ratio (%)								Composition ratio (%)
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term borrowings			1,724								3,240
Trade notes and accounts payable			23,372								23,951
Other payables			5,640								6,091
Accrued expenses			7,982								7,259
Accrued payroll			8,096								6,288
Income taxes payable			7,518								6,407
Deferred income taxes			58								60
Other liabilities			5,266								6,664
Total current liabilities			59,656				15.4	%			59,960				15.4	%
LONG-TERM LIABILITIES:
Long-term indebtedness			908								889
Accrued retirement and termination allowances			3,716								3,677
Deferred income taxes			1,215								3,002
Other liabilities			1,958								2,007
			7,797				2.0	%			9,575				2.4	%
			67,453				17.4	%			69,535				17.8	%
MINORITY INTERESTS			2,516				0.7	%			2,850				0.7	%
SHAREHOLDERS’ EQUITY:
Common stock			23,805								23,805
Additional paid-in capital			45,753								45,753
Legal reserve			5,669								5,669
Retained earnings			249,191								251,340
Accumulated other comprehensive income (loss)			(7,657	)							4,187
Treasury stock, at cost			(263	)							(12,193	)
			316,498				81.9	%			318,561				81.5	%
			386,467				100.0	%			390,946				100.0	%

		As of March				As of June
		31, 2008				30, 2008
Total number of shares authorized			496,000,000				496,000,000
Number of shares issued			144,008,760				144,008,760
Number of shares issued (excluding treasury stock)			143,773,625				140,772,051
Number of treasury stock			235,135				3,236,709

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

(2) QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

		Yen (millions)
		For the three months ended								For the three months ended
		June 30, 2007								June 30, 2008
		(Amount)				(%)				(Amount)				(%)
NET SALES			80,615				100.0				84,636				100.0
Cost of sales			47,862				59.4				49,404				58.4
GROSS PROFIT			32,753				40.6				35,232				41.6
Selling, general, administrative and other expenses			17,761				22.0				18,141				21.4
OPERATING INCOME			14,992				18.6				17,091				20.2
OTHER INCOME (EXPENSES):
Interest and dividend income			585								558
Interest expense			(89	)							(77	)
Exchange gains (losses) on foreign currency transactions, net			31								(359	)
Realized gains (losses) on securities, net			12								(365	)
Other, net			(114	)							(171	)
Total			425				0.5				(414	)			(0.5	)
INCOME BEFORE INCOME TAXES			15,417				19.1				16,677				19.7
PROVISION FOR INCOME TAXES:
Current			2,631								3,131
Deferred			1,543								1,765
Total			4,174				5.2				4,896				5.8
NET INCOME			11,243				13.9				11,781				13.9

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

(3) CONDENSED QUARTERLY CONSOLIDATED STATEMENTS OF CASH FLOWS

		Yen (millions)
		For the three months ended				For the three months ended
		June 30, 2007				June 30, 2008
Net cash provided by operating activities			3,337				2,544
Net cash provided by investing activities			6,157				12,764
Net cash used in financing activities			(7,928	)			(20,280	)
Effect of exchange rate changes on cash and cash equivalents			908				1,446
Net change in cash and cash equivalents			2,474				(3,526	)
Cash and cash equivalents, beginning of period			37,128				46,306
Cash and cash equivalents, end of period			39,602				42,780

(4) NOTES ON THE PRECONDITIONS FOR A GOING CONCERN: None

(5) CONDENSED QUARTERLY OPERATING SEGMENT INFORMATION

For the three months ended June 30, 2007
		Yen (millions)
																										Corporate
										North																and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			16,479				37,760				13,540				2,888				9,948				80,615				—				80,615
(2) Inter-segment			15,924				1,476				1,217				22,030				49				40,696				(40,696	)			—
Total			32,403				39,236				14,757				24,918				9,997				121,311				(40,696	)			80,615
Operating expenses			27,056				33,079				14,143				21,518				8,666				104,462				(38,839	)			65,623
Operating income			5,347				6,157				614				3,400				1,331				16,849				(1,857	)			14,992

For the three months ended June 30, 2008
		Yen (millions)
																										Corporate
										North																and elimi-				Consoli-
		Japan				Europe				America				Asia				Other				Total				nations				dated
Sales:
(1) External customers			17,175				40,730				11,604				3,283				11,844				84,636				—				84,636
(2) Inter-segment			16,991				1,666				1,404				26,478				27				46,566				(46,566	)			—
Total			34,166				42,396				13,008				29,761				11,871				131,202				(46,566	)			84,636
Operating expenses			30,064				35,414				12,787				25,563				9,896				113,724				(46,179	)			67,545
Operating income			4,102				6,982				221				4,198				1,975				17,478				(387	)			17,091

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

(6) NOTES IN CASE THERE IS ANY SIGNIFICANT CHANGE IN THE SHAREHOLDERS’ EQUITY

QUARTERLY CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME

		Yen (millions)
		For the three months ended
		June 30, 2008
COMMON STOCK:
Beginning balance			23,805
Ending balance			23,805
ADDITIONAL PAID-IN CAPITAL:
Beginning balance			45,753
Ending balance			45,753
LEGAL RESERVE:
Beginning balance			5,669
Ending balance			5,669
RETAINED EARNINGS:
Beginning balance			249,191
Cash dividends			(9,632	)
Net income			11,781
Ending balance			251,340
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
Beginning balance			(7,657	)
Other comprehensive income for the period			11,844
Ending balance			4,187
TREASURY STOCK, at cost:
Beginning balance			(263	)
Purchases (Note)			(11,930	)
Ending balance			(12,193	)
TOTAL SHAREHOLDERS’ EQUITY			318,561

Note:		Purchases of treasury stock In May 2008, the Company bought back its own shares on the market at 11,923 million yen.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

SUPPORT DOCUMENTATION (CONSOLIDATED)

1. Consolidated financial results and forecast

										Yen (millions)
										For the three months ended								For the three months ended
										June 30, 2007								June 30, 2008
										(Results)								(Results)
										(Amount)				(%)				(Amount)				(%)
Net sales											80,615				30.1				84,636				5.0
Domestic											12,090				12.2				11,447				(5.3	)
Overseas											68,525				33.9				73,189				6.8
Operating income											14,992				43.1				17,091				14.0
Income before income taxes											15,417				39.4				16,677				8.2
Net income											11,243				43.8				11,781				4.8
Net income per share (Yen)											78.24								82.81
Employees											9,443								10,515
		Yen (millions)
		For the year ended								For the six months								For the year ending
		March 31, 2008								ending September 30, 2008								March 31, 2009
		(Results)								(Forecast)								(Forecast)
		(Amount)				(%)				(Amount)				(%)				(Amount)				(%)
Net sales			342,577				22.4				169,500				(0.0	)			343,000				0.1
Domestic			52,193				11.4				24,700				(3.7	)			50,000				(4.2	)
Overseas			290,384				24.6				144,800				0.6				293,000				0.9
Operating income			67,031				39.1				31,600				(6.8	)			64,000				(4.5	)
Income before income taxes			65,771				33.3				30,700				(10.9	)			63,000				(4.2	)
Net income			46,043				24.5				20,500				(13.1	)			42,000				(8.8	)
Net income per share (Yen)			320.30								145.63								298.35
Employees			10,436								—								—

Note:		The table above shows the changes in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net income against the corresponding period of the previous year. Please refer to page 3 for the qualitative information on consolidated financial forecast for the six months and fiscal year 2009.

2. Consolidated net sales by geographic area

		Yen (millions)
		For the three months ended								For the three months ended								For the year ended
		June 30, 2007								June 30, 2008								March 31, 2008
		(Results)								(Results)								(Results)
		(Amount)				(%)				(Amount)				(%)				(Amount)				(%)
Japan			12,090				12.2				11,447				(5.3	)			52,193				11.4
Europe			37,632				44.0				40,835				8.5				160,360				29.3
North America			13,672				14.0				11,440				(16.3	)			56,422				9.6
Asia			5,422				17.3				7,036				29.8				22,629				16.2
Other regions			11,799				39.9				13,878				17.6				50,973				33.7
Central and South America			3,828				39.3				4,960				29.6				16,764				32.0
The Middle East and Africa			4,038				37.8				4,826				19.5				18,687				43.0
Oceania			3,933				42.8				4,092				4.0				15,522				25.7
Total			80,615				30.1				84,636				5.0				342,577				22.4

Note:		The table above sets forth Makita’s consolidated net sales by geographic area based on the customer’s location for the periods presented. Accordingly, it differs from operating segment information on page 7.

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language

3. Exchange rates

Yen

For the three months ended

For the three months ended

For the year ended

For the six months ending

For the year ending

June 30, 2007

June 30, 2008

March 31, 2008

September 30, 2008

March 31, 2009

(Results)

(Results)

(Results)

(Forecast)

(Forecast)

Yen/U.S. Dollar

120.82

104.56

114.44

100

100

Yen/Euro

162.75

163.44

161.59

158

158

4. Sales growth in local currency basis (major countries)

		For the three months ended
		June 30, 2008
		(Results)
		(%)
U.K.			3.9
Germany			0.9
France			4.7
Russia			31.4
U.S.A.			(7.4	)
China			24.0
Brazil			46.5
Makita Gulf (UAE)*			43.3
Australia			7.2

* Including export sales for the Middle East and Africa.

5. Production ratio (unit basis)

		For the three months ended				For the three months ended				For the year ended
		June 30, 2007				June 30, 2008				March 31, 2008
		(Results)				(Results)				(Results)
			(%)				(%)				(%)
Domestic			24.7				20.7				22.5
Overseas			75.3				79.3				77.5

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

		Yen (millions)
		For the three months ended				For the three months ended				For the year ended				For the year ending
		June 30, 2007				June 30, 2008				March 31, 2008				March 31, 2009
		(Results)				(Results)				(Results)				(Forecast)
Capital expenditures			3,961				5,458				15,036				25,000
Depreciation and amortization			1,802				2,181				8,871				10,700
R&D cost			1,403				1,686				5,922				6,500

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English Translation of “KESSAN TANSHIN” originally issued in Japanese language