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The balance sheet shows current assets increasing by 15.2 billion yen in cash and time deposits but decreasing by 58.3 billion yen in marketable securities. This was a result of making cash on hand available in preparation for the share buyback in October. Current assets also declined in notes and accounts receivable trade at domestic dealers due to seasonal factors. Inventories increased due to work in progress related to the Aerospace Company’s AH-64D. The increase of 4.3 billion yen in equipment of fixed assets is due to increases in the SOA fleet vehicles. Other increases were partly due to the dies of suppliers for the B9 Tribeca being accounted for as assets.
Regarding interest-bearing debt, a 10 billion yen straight bond was reduced and 10 billion yen in commercial papers released by our subsidiary, Subaru Finance Co., Ltd., were repaid. This led to a decrease of 21.1 billion yen to 391.1 billion yen since March 2005. The debt-to-equity ratio was 0.86%.2.6 billion yen was amortized for the consolidated adjustment account in relation to SIA’s payment of fixed costs and 7.1 million yen of the settlement with Isuzu was paid.In shareholders’ equity, while there was 7 billion yen of dividends paid, this was offset by 3.5 billion yen of accumulated earnings from new equity method affiliates. The current net income was 12.8 billion yen and accumulated earnings increased by 9.2 billion yen. As a result of share buyback following the dissolution of the strategic alliance with GM and the initiation of a new business alliance with Toyota, the treasury stocks of FHI increased by 39.3 billion yen to 41.6 billion yen. Additionally, losses in the translation adjustment account have declined owing to the weak yen. Total Shareholders’ equity came to 453.1 billion yen.
Shareholders’ equity to total assets dropped by 0.9% to 33.9% as a result of the share buyback and translation adjustments. |
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