835e6340-62c1-4989-9432-eaeab17a281f.pdf Financial Results for the Third Quarter ended December 31, 2015

(Consolidated financial results have been prepared in accordance with accounting principles generally accepted in Japan)

February 10, 2016

Company name:

HANWA Co.,Ltd. Listed stock exchange: Tokyo

Stock exchange code: 8078

(URL http://www.hanwa.co.jp)

Representative: Enquiries:

Hironari Furukawa President

Atsuhiro Moriguchi Director, Senior Managing Executive Officer

TEL 81 - 3 - 3544 - 2000

The date of issue of audited financial statements: February 12, 2016 The date of payout of dividend: ―

(Rounded down to millions of yen)

１．Consolidated financial results for the third quarter ended December 31, 2015

  1. Consolidated operating results （％ of change from the same period of previous year）


    Net sales

    Operating income

    Ordinary income

    Net income

    For the third quarter

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    (Millions of yen)

    (％)

    ended December 31,

    2015

    1,172,644

    (10.3)

    13,521

    (1.1)

    11,348

    18.7

    8,127

    43.7

    ended December 31,

    2014

    1,307,884

    6.5

    13,666

    19.1

    9,562

    (11.4)

    5,655

    (4.5)

    Note: Comprehensive income For the third quarter ended December 31, 2015

    For the third quarter ended December 31, 2014


    Net income per share

    Net income per share(diluted)

    For the third quarter

    ended December 31, 2015

    ended December 31, 2014

    (yen)

    39.22

    27.29

    (yen)

    －

    －

  2. Consolidated financial position

5,724 million yen

11,904 million yen

(51.9) ％

(19.0) ％


Total assets

Net assets

Shareholders' equity ratio

Shareholders' equity per share


December 31, 2015

March 31, 2015

(Millions of yen)

639,946

651,456

(Millions of yen)

145,322

142,749

(％)

22.5

21.7

(yen)

695.01

682.46

Note: Shareholders' equity As of December 31, 2015

As of March 31, 2015

144,012 million yen

141,415 million yen


２．Cash dividends


Cash dividends per share

（effective date）

First quarter

Second quarter

Third quarter

Year-end

Annual


Year ended March 31, 2015

(yen)

－

(yen)

7.50

(yen)

－

(yen)

7.50

(yen)

15.00

Year ending March 31, 2016

（estimated）

－

8.00

－

8.00

16.00

Net sales

Operating income

Ordinary income

Net income

Net income per share

Annual

(Millions of yen) (％)

1,650,000 (5.0)

(Millions of yen) (％)

20,000 4.7

(Millions of yen) (％)

18,000 26.2

(Millions of yen) (％)

12,000 32.1

(yen)

57.91

３．Forecast of consolidated financial results for fiscal year ending March 31, 2016 （％ of change from previousyear）


* The above forecasts reflect assumptions and prospects based on the information currently available.They are subject to a number of risks and uncertainties that could cause actual results to differ materially from this information.


Financial Results for the Third Quarter ended December 31, 2015

《Consolidated Balance Sheets》

(Rounded down to millions of yen)

Millions of yen

March 31, 2015

December 31, 2015

Increase(Decrease)

Assets

Current assets;

Cash and deposits

24,542

26,118

1,576

Trade notes and accounts receivable

321,642

305,523

(16,119)

Securities

2,610

2,586

(24)

Inventories

133,055

108,659

(24,396)

Others

29,442

35,539

6,097

Allowance for doubtful receivables

(915)

(340)

575

Total current assets

510,377

478,087

(32,290)


Fixed assets;

Property and equipment;

Land

31,676

35,366

3,690

Others

29,270

32,753

3,483

Total property and equipment

60,946

68,120

7,174

Intangible assets

2,019

2,010

(9)

Investments and other assets;

Investment securities

58,293

63,161

4,868

Others

20,114

29,073

8,959

Allowance for doubtful receivables

(295)

(506)

(211)

Total investments and other assets

78,112

91,728

13,616

Total fixed assets

141,078

161,858

20,780

Total assets

651,456

639,946

(11,510)


Liabilities;

Current liabilities;

Trade notes and accounts payable

180,155

170,918

(9,237)

Short-term loans payable

82,155

88,154

5,999

Commercial paper

27,000

5,000

(22,000)

Current portion of bonds payable

10,000

10,039

39

Income taxes payable

1,231

538

(693)

Accrued bonuses

2,051

1,225

(826)

Reserved for operating losses for affiliate companies

―

512

512

Others

39,602

43,083

3,481

Total current liabilities

342,196

319,471

(22,725)


Long-term liabilities;

Bonds payable

30,000

30,108

108

Long-term loans payable

122,352

130,894

8,542

Retirement benefits liabilities

412

503

91

Others

13,745

13,647

(98)

Total long-term liabilities

166,510

175,152

8,642

Total liabilities

508,706

494,623

(14,083)


Net assets;

Shareholders' equity;

Common stock

45,651

45,651

―

Capital surplus

4

4

―

Retained earnings

82,110

87,490

5,380

Treasury stock

(1,445)

(1,448)

(3)

Total shareholders' equity

126,320

131,696

5,376

Accumulated other comprehensive income

Net unrealized holding gains on securities

11,621

10,723

(898)

Deferred hedge profit and loss

1,526

(159)

(1,685)

Land revaluation difference

3,250

2,868

(382)

Foreign currency translation adjustments

2,356

2,049

(307)

Remeasurements of defined benefit plans

(3,660)

(3,167)

493

Total accumulated other comprehensive income

15,094

12,315

(2,779)

Minority interests

1,334

1,309

(25)

Total net assets

142,749

145,322

2,573

Total liabilities and net assets

651,456

639,946

(11,510)


Financial Results for the Third Quarter ended December 31, 2015

《Consolidated Statements of Income and Comprehensive Income》

(Rounded down to millions of yen)

Millions of yen

Third quarter ended December 31, 2014

Third quarter ended

December 31, 2015


Increase(Decrease)

Net sales

1,307,884

1,172,644

(135,240)

Cost of sales

1,266,479

1,130,306

(136,173)

Gross profit

41,405

42,338

933

Selling, general and administrative expenses

27,738


28,816

1,078

Operating income

13,666

13,521

(145)


Other income;

Interest income

638

725

87

Dividend income

506

1,008

502

Equity in earnings of affiliates

133

―

(133)

Others

656

1,486

830

Total other income

1,935

3,219

1,284

Other expenses;

Interest expenses

2,194

2,049

(145)

Loss on investment in affiliates

―

1,260

1,260

Foreign exchange loss

2,748

1,036

(1,712)

Others

1,097

1,046

(51)

Total other expenses

6,040

5,393

(647)

Ordinary income

9,562

11,348

1,786


Extraordinary income

Gain on sale of property and equipment

―

532

532

Gain on sales of investment securities

―

500

500

Amortization of consolidation negative goodwill

―

1,101

1,101

Total extraordinary income

―

2,133

2,133

Extraordinary loss;

Loss on devaluation of investments securities

124

1,042

918

Business loss of affiliates

495

―

(495)

Total extraordinary loss

620

1,042

422

Income before income taxes

8,941

12,439

3,498

Income taxes

3,239


4,329

1,090

Net income

5,702

8,110

2,408

Net income attributable to

Net income attributable to owners of the parent

5,655

8,127

2,472

Net income(loss) attributable to minority interests

46

(17)

(63)

Other Comprehensive Income

Net unrealized holding gains on securities

3,114

(898)

(4,012)

Deferred hedge profit and loss

1,641

(1,685)

(3,326)

Foreign currency translation adjustments

829

(374)

(1,203)

Remeasurements of defined benefit plans

616

492

(124)

Share of other comprehensive income of affiliates

―

80

80

Total other comprehensive Income

6,202

(2,385)

(8,587)

Comprehensive Income

11,904

5,724

(6,180)

Comprehensive income attributable to

Comprehensive income attributable to owners of the parent

11,834

5,729

(6,105)

Comprehensive income attributable to minority interests

69

(5)

(74)

Financial Results for the Third Quarter ended December 31, 2015 《Segment information》


Business segment information

The Companies' operations are classified into five business segments as follows:

Steel: Steel bars and shapes, steel plates and sheets, special steels, wire products, steel pipes, and steelmaking raw materials

Metals and alloys: Nickel, chromium, stainless scrap, silicon, manganese and steel alloys

Non-ferrous metals: Copper, aluminium, lead, zinc, tin, antimony and other metals Foods: Frozen seafoods and meat products

Petroleum and chemicals : Petroleum products, chemical products, and cement


Segment information by business category for the third quarter ended December 31, 2014 and 2015, is as follows:

(Rounded down to millions of yen)

Third quarter ended December 31, 2014 Millions of yen

Reportable segment


Other


Total


Adjustment


Consoli- dated

Steel

Metals

& alloys

Non-ferrous

metals

Foods

Petroleum

& chemicals

Sub- total

Net sales


637,118


90,389


62,817


69,920


331,587


1,191,833


116,050


1,307,884


―


1,307,884

Customers

Inter-segment

15,521

4,537

1,068

644

5,802

27,575

62,755

90,330

(90,330)

―

Total

652,640

94,926

63,886

70,565

337,389

1,219,408

178,806

1,398,215

(90,330)

1,307,884

Segment income(loss)

10,633

(1,171)

676

1,091

1,099

12,329

724

13,053

(3,491)

9,562


Third quarter ended December 31, 2015 Millions of yen

Reportable segment


Other


Total


Adjustment


Consoli- dated

Steel

Metals

& alloys

Non-ferrous

metals

Foods

Petroleum

& chemicals

Sub- total

Net sales


601,016


97,765


63,942


71,766


215,511


1,050,002


122,642


1,172,644


―


1,172,644

Customers

Inter-segment

15,408

2,347

858

902

3,969

23,487

66,760

90,248

(90,248)

―

Total

616,425

100,113

64,800

72,669

219,481

1,073,490

189,402

1,262,892

(90,248)

1,172,644

Segment income(loss)

10,619

1,513

743

182

1,511

14,570

579

15,150

(3,801)

11,348


Notes:

  1. "Other" comprises businesses that are not included in reportable segments, such as lumber section, machinery section and overseas sales subsidiaries.

  2. Adjustments for segment income include intersegment elimination and Group costs that have not been distributed to reportable segments. These group costs consist mainly of expenses of administrative departments.

  3. Segment income or loss is adjusted between ordinary income on the consolidated statements of income and comprehensive income.

Hanwa Co. Ltd. issued this content on 10 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 04:44:17 UTC

Original Document: http://www.hanwa.co.jp/hanwa_e/ir/pdf/2016/20160210.pdf