Announcement of the Amendments to the Expected Consolidated Business Performance and Expected Dividends
Mabuchi Motor Co., Ltd. hereby announces that it has amended the expected interim and full-year consolidated business performance for the current fiscal year (from January 1, 2007 to December 31, 2007), which had been announced on February 16, 2007, and that at the same time it has also amended the expected interim and year-end dividends per share for the current fiscal year, which had been announced on June 29, 2007, based on the recent performance trends as follows:
Amendment to the expected interim consolidated business performance for the current fiscal year (for the period from January 1, 2007 to June 30, 2007)
| Sales | Ordinary profit | Interim net profit | |
|---|---|---|---|
| Expected performance announced last time (A) | 49,000 | 6,800 | 4,600 |
| Expected performance amended this time (B) | 52,700 | 9,100 | 6,300 |
| Increase (B-A) | 3,700 | 2,300 | 1,700 |
| Increase rate (%) | 7.6 | 33.8 | 37.0 |
| (Reference) Interim financial results for 2006 fiscal year | 49,146 | 7,706 | 5,323 |
Amendment to the expected full-year consolidated business performance for the current fiscal year (for the period from January 1, 2007 to December 31, 2007)
| Sales | Ordinary profit | Full-year net profit | |
|---|---|---|---|
| Expected performance announced last time (A) | 101,000 | 15,100 | 10,000 |
| Expected performance amended this time (B) | 107,000 | 17,700 | 12,000 |
| Increase (B-A) | 6,000 | 2,600 | 2,000 |
| Increase rate (%) | 5.9 | 17.2 | 20.0 |
| (Reference) Full-year financial results for 2006 fiscal year | 100,517 | 15,933 | 10,603 |
(Reference) Expected net profit for the current fiscal year per share: 313.77 yen
Amendment to the expected interim and year-end dividends for the current fiscal year (the 67th period)
| Interim | Year-end | Annual | |
|---|---|---|---|
| Expected dividends announced on June 29, 2007 | 56.00 | 56.00 | 112.00 |
| Expected dividends amended this time | 61.00 | 62.00 | 123.00 |
| (Reference) Actual dividends per share for 2006 fiscal year | 51.00 | 63.00 | 114.00 |
Background of the amendments
(1) Interim consolidated business performance
In terms of sales, both the sales volume and the sale proceeds are expected to be better-than-expected compared with the previous announcement in every market segment by application including the automotive product market due to the improvement of product mix and the greater-than-expected weakening yen exchange rate as well as the steady market conditions as a whole (1.9% increase in sales volume and 7.6% increase in sale proceeds). In terms of revenue, the operating income is expected to increase 24.5% compared with the previous announcement due to the factors such as the cost and the expense are expected to be within the scope of the original assumption. Furthermore, the ordinary profit is expected to increase 33.8% and the interim net profit is expected to increase 37.0% respectively due to the increases of the investment profit (such as the interest received) and foreign exchange profit.
The exchange rate used this time is a 120.15 yen to the dollar (Last time expectation: a 115 yen to the dollar).
(2) Consolidated business performance for the current fiscal year
In terms of the sales for the fiscal year, both the sales volume and the sale proceeds are expected to be better-than-expected compared with the previous announcement (1.7% increase of the sales volume and 5.9% increase of the sale proceeds). In terms of the consolidated business performance for the fiscal year, 13.6% increase of the operating income, 17.2% increase of the ordinary profit and the 20.0% increase of the net profit for the current fiscal year are expected compared with the previous announcement though the negative factors which may lead to the lower earnings such as the sharp rebound in copper price and the increase in launching cost at the production sites. The exchange rate used for expectation for the second half of the year is a 117.00 yen to the dollar. The foreign exchange gain or loss is not taken into consideration in the expectation.
The reason to amend the expected dividends
Mabuchi Motor Co., Ltd. has been distributing 60 yen per share as the ordinary share as the stable, lasting dividend plus the special dividend calculated by dividing the 20% of the consolidated net profits by the number of shares. As mentioned in the above, the expected dividends have been amended accompanied with the amendments to the expected consolidated business performance for the current fiscal year.
Contact: Shunroku Nishimura, Managing Director, General Manager of Administrative Headquarters (Tel: +81-47-710-1127)
