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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6 - K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of May 2009

Commission File Number: 1-07294

 

 

KUBOTA CORPORATION

(Translation of registrant’s name into English)

 

 

2-47, Shikitsuhigashi 1-chome, Naniwa-ku, Osaka, Japan

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F      X            Form 40-F              

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):             

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):             

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                      No      X    

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

 

 

 

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Information furnished on this form:

EXHIBITS

Exhibit Number

 

1.	Results of Operations for the year ended March 31, 2009. (Wednesday, May 13, 2009)

 

2.	Notice on an distribution of retained earnings. (Wednesday, May 13, 2009)

 

3.	Basic policy regarding reduction of trading unit of the Company’s stock. (Wednesday, May 13, 2009)

 

4.	Notice on amendment to Articles of Incorporation. (Wednesday, May 13, 2009)

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						Contact:
						IR Group
						Kubota Corporation
						2-47, Shikitsuhigashi 1-chome,
						Naniwa-ku, Osaka 556-8601, Japan
						Phone		: +81-6-6648-2645
						Facsimile		: +81-6-6648-2632

FOR IMMEDIATE RELEASE (WEDNESDAY, MAY 13, 2009)

RESULTS OF OPERATIONS FOR THE YEAR ENDED

MARCH 31, 2009 REPORTED BY KUBOTA CORPORATION

OSAKA, JAPAN, May 13, 2009 — Kubota Corporation reported today its consolidated and non-consolidated results of operations for the year ended March 31, 2009.

Consolidated Financial Highlights

1. Consolidated Results of Operations for the Fiscal Year Ended March 31, 2009

 

(1) Results of operations		(In millions of yen and thousands of U.S. dollars except per American Depositary Share (“ADS”) amounts)
		Year ended March 31, 2009				% (*)			Year ended March 31, 2008				% (*)
Revenues		¥ [$	1,107,482 11,300,837	]		(4.1	)		¥	1,154,574			2.4
Operating income		¥ [$	102,815 1,049,133	]		(24.9	)		¥	136,875			5.0
% of revenues			9.3	%						11.9	%
Income from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies		¥ [$	83,259 849,582	]		(32.1	)		¥	122,577			(6.8	)
% of revenues			7.5	%						10.6	%
Net income		¥ [$	48,064 490,449	]		(29.3	)		¥	68,026			(11.0	)
% of revenues			4.3	%						5.9	%
Net income per ADS
Basic		¥ [$	188.40 1.92	]					¥	264.01
Diluted		¥ [$	188.40 1.92	]					¥	264.01
Ratio of net income to shareholders’ equity			7.8	%						10.4	%
Ratio of income from continuing operations before income taxes to total assets			5.8	%						8.3	%

 

Notes.

1. (*) represents percentage change from the comparable previous period.

2. Equity in net income of affiliated companies for the years ended March 31, 2009 and 2008 were ¥222 million and ¥94 million,

respectively.

 

(2) Financial position		(In millions of yen and thousands of U.S. dollars except per ADS amounts)
		March 31, 2009				March 31, 2008
Total assets		¥ [$	1,385,824 14,141,061	]		¥	1,464,270
Shareholders’ equity		¥ [$	578,284 5,900,857	]		¥	648,097
Ratio of shareholders’ equity to total assets			41.7	%			44.3	%
Shareholders’ equity per ADS		¥ [$	2,273.02 23.19	]		¥	2,530.44

 

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Kubota Corporation

and Subsidiaries

 

(3) Summary of statements of cash flows		(In millions of yen and thousands of U.S. dollars)
		Year ended March 31, 2009				Year ended March 31, 2008
Net cash provided by (used in) operating activities		(¥ [($	22,577 230,378	) )]		¥	90,110
Net cash used in investing activities		(¥ [($	74,021 755,316	) )]		(¥	72,344)
Net cash provided by (used in) financing activities		¥ [$	84,860 865,919	]		(¥	11,680)
Cash & cash equivalents, end of year		¥ [$	69,505 709,235	]		¥	88,784

2. Cash dividends

 

		(In millions of yen except per ADS amounts)
		Cash dividends per ADS													Annual cash dividends			Annual cash dividends as % to net income			Annual dividends as % to share- holders’ equity
		First quarter period		Second quarter period			Third quarter period		Year-end			Total
Year ended March 31, 2009		—		¥	35.00		—		¥	35.00		¥	70.00		¥	17,852		37.2	%		2.9	%
Year ended March 31, 2008		—		¥	30.00		—		¥	40.00		¥	70.00		¥	17,981		26.5	%		2.8	%

 

Note.

Specific amount of cash dividends for the year ending March 31, 2010 is not decided at this time.

3. Anticipated results of operations for the year ending March 31, 2010

 

		(In millions of yen except per ADS amounts)
		Six months ending September 30, 2009			% (*)			Year ending March 31, 2010			% (*)
Revenues		¥	480,000		(16.1	)		¥	1,020,000		(7.9	)
Operating income		¥	28,000		(58.9	)		¥	70,000		(31.9	)
Income from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies		¥	27,500		(58.3	)		¥	69,500		(16.5	)
Net income attributable to Kubota Corp.		¥	15,000		(58.0	)		¥	40,000		(16.8	)
Net income attributable to Kubota Corp. per ADS		¥	58.96					¥	157.22

 

Notes.

(*) represents percentage change from the comparable previous period.

Please refer to page 5 for further information related to the above mentioned anticipated results of operations.

‘Net income attributable to Kubota Corp.’ is comparable to ‘Net income’ presented in the year under review.

4. Other

 

(1)	Changes in number of material subsidiaries during the fiscal year: No

 

(2)	Changes in accounting principles, procedures, and presentations for consolidated financial statements

 

(a)

Changes by newly issued accounting pronouncement : Yes

 

(b)

Changes in matters other than (a) above : No

 

Please refer to “Notes” on page 15 for more detail.
(3)		Number of shares outstanding including treasury stock as of March 31, 2009		:		1,285,919,180
		Number of shares outstanding including treasury stock as of March 31, 2008		:		1,285,919,180
		Number of treasury stock as of March 31, 2009		:		13,856,291
		Number of treasury stock as of March 31, 2008		:		5,315,673
		Weighted average number of shares outstanding during the year ended March 31, 2009		:		1,275,574,702
		Weighted average number of shares outstanding during the year ended March 31, 2008		:		1,288,336,590

Please refer to “Per Common Share Information” on page 16.

 

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Kubota Corporation

(Parent Company Only)

(Reference) Non-consolidated Financial Highlights

 

(1) Results of operations		(In millions of yen except per ADS amounts)
		Year ended March 31, 2009			(*)			Year ended March 31, 2008			(*)
Net sales		¥	643,090		(6.2	)		¥	685,431		(1.4	)
Operating income		¥	27,844		(55.0	)		¥	61,932		(14.6	)
Ordinary income		¥	25,659		(60.1	)		¥	64,357		(18.1	)
Net income		¥	3,849		(88.3	)		¥	32,906		(24.1	)
Net income per ADS
Basic		¥	15.08					¥	127.67
Diluted			—						—

 

Note.

(*) represents percentage change to the comparable previous year.

 

(2) Financial position		(In millions of yen except per ADS amounts)
		March 31, 2009				March 31, 2008
Total assets		¥	736,496			¥	814,886
Net assets		¥	409,063			¥	459,948
Ratio of net assets to total assets			55.5	%			56.4	%
Net assets per ADS		¥	1,607.39			¥	1,795.30

 

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Kubota Corporation

and Subsidiaries

1. Review of Operations and Financial Condition

1. Review of operations

(1) Summary of the results of operations for the year under review

For the year ended March 31, 2009, revenues of Kubota Corporation and subsidiaries (hereinafter “the Company”) decreased ¥47.1 billion (4.1 %), to ¥1,107.5 billion from the prior year.

In the domestic market, revenues decreased ¥23.0 billion (4.0 %), to ¥549.2 billion from the prior year. Revenues in Internal Combustion Engine and Machinery decreased due to depressed sales of farm equipment and engines resulting from stagnant market conditions and substantially lower sales of construction machinery on the background of demand shrinkage accompanied by economic slowdown. Revenues in Pipes, Valves, and Industrial Castings increased due to a substantial increase in sales of ductile iron pipes and spiral welded steel pipes, while sales of industrial castings decreased. Revenues in Environmental Engineering increased due mainly to increased sales of water & sewage engineering products. Revenues in Other decreased mainly due to a decrease in sales of vending machine and construction.

Revenues in overseas markets decreased ¥24.0 billion (4.1 %), to ¥558.3 billion from the prior year. In Internal Combustion Engine and Machinery, sales of combine harvesters and rice transplanters increased favorably, however, sales of engines decreased substantially and sales of tractors decreased slightly. In addition, sales of construction machinery significantly decreased in North American and European markets. Revenues in Pipes, Valves, and Industrial Castings increased due to increased sales of ductile iron pipes, while sales of industrial castings decreased. Revenues in Environmental Engineering decreased, however, revenues in Other increased. The ratio of overseas revenues to consolidated revenues was 50.4 %, the same as the prior year.

Operating income decreased ¥34.1 billion (24.9 %), to ¥102.8 billion from the prior year. Operating income in Internal Combustion Engine and Machinery decreased largely due to decreased demand, appreciation of the yen and price hikes for raw materials. Decreases in Operating income in Pipes, Valves, and Industrial Castings resulted from recorded losses related to the Anti-Monopoly Law corresponding to ductile iron pipe business. Operating loss in Environmental Engineering shrank, while operating income in Other decreased due to decreased sales of vending machines.

Income from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies decreased ¥39.3 billion (32.1 %), to ¥83.3 billion. This decrease was due to a decrease in operating income and an increase in other expenses resulting from increases in foreign exchange loss and valuation losses on other investment.

Income taxes were ¥28.7 billion (representing an effective tax rate of 34.5 %), which included the effect of reversal of part of the deferred tax liabilities because of a tax law revision related to the taxation of dividends from overseas subsidiaries. Net amount of minority interests in earnings of subsidiaries and equity in net income of affiliated companies to deduct was ¥6.4 billion. As a result, net income was ¥48.1 billion, ¥20.0 billion (29.3 %) lower than the prior year.

 

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Kubota Corporation

and Subsidiaries

 

(2) Review of operations by industry segment

1) Internal Combustion Engine and Machinery

Revenues in Internal Combustion Engine and Machinery were ¥754.4 billion, 4.9 % lower than the prior year, comprising 68.1 % of consolidated revenues. Domestic revenues decreased 5.3 %, to ¥235.2 billion, and overseas revenues decreased 4.8 %, to ¥519.3 billion. This segment comprises farm equipment, engines and construction machinery.

In the domestic market, the operating environment continued to be challenging due to stagnant demand for farm equipment resulted from economic slowdown and the price hikes of agricultural materials and a decrease in construction investment. In this circumstance, the Company actively introduced new products and implemented promotional sales activity, and sales of combine harvesters and rice transplanters increased. However, sales of tractors and engine decreased, and construction machinery decreased substantially.

In overseas markets, sales of tractors slightly decreased. In Asia outside Japan, sales of tractors in Thailand continued to increase, and sales in Europe also increased steadily due to launching new products. However, sales of tractors in North America decreased substantially due to a stagnation of the markets and appreciation of the yen. Sales of construction machinery decreased substantially due to the rapid economic slowdown in Europe, sales of engine decreased due to inventory adjustment in European and North American clients. On the other hand, sales of combine harvesters and rice transplanters increased sharply in China.

2) Pipes, Valves, and Industrial Castings

Revenues in Pipes, Valves, and Industrial Castings increased 3.1 %, to ¥207.9 billion from the prior year, comprising 18.8 % of consolidated revenues. Domestic revenues increased 2.9 %, to ¥176.1 billion, and overseas revenues increased 4.2 %, to ¥31.8 billion. This segment comprises pipes, valves and industrial castings.

In the domestic market, sales of ductile iron pipes and spiral welded steel pipes increased largely due to price increases. However, sales of plastic pipes decreased due to declining demand. Sales of industrial castings decreased due to decreased sales of ductile tunnel segment.

In overseas markets, sales of industrial castings decreased affected by slowdown in capital expenditures in private sector. On the other hand, export sales of ductile iron pipes to the Middle East favorably increased and compensated for decreased amount of sales of industrial castings.

3) Environmental Engineering

Revenues in Environmental Engineering increased 5.0 %, to ¥74.4 billion from the prior year, comprising 6.7 % of consolidated revenues. Domestic revenues increased 6.1 %, to ¥68.9 billion, and overseas revenues decreased 7.4 %, to ¥5.5 billion. This segment consists of environmental control plants and pumps.

In the domestic market, sales of water & sewage engineering products substantially increased. Sales of the waste engineering products and pumps also increased steadily. In overseas markets, sales of pumps increased steadily while sales of submerged membrane systems decreased substantially from the prior year.

4) Other

Revenues in Other decreased 19.9 %, to ¥70.8 billion from the prior year, comprising 6.4 % of consolidated revenues. Domestic revenues decreased 21.4 %, to ¥69.1 billion, and overseas revenues increased 237.5 %, to ¥1.7 billion. This segment comprises vending machines, electronic equipped machinery, air-conditioning equipment, construction, septic tanks and other business.

Sales of vending machine decreased substantially in this segment due to the decreased demand for cigarette-vending machines with the function of age-identification, for which the temporary demand was very high in the prior year. Sales of construction and electronic equipped machinery also decreased. In addition, sales of condominiums were absent in this fiscal year because some shares of the subsidiary which conducted condominium business were sold and the subsidiary changed into an affiliated Company in the prior year. As a result, revenues in Other largely decreased.

 

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Kubota Corporation

and Subsidiaries

 

(3) Prospect for the Next Fiscal Year

The Company forecasts consolidated revenues for the year ending March 31, 2010 at ¥1,020.0 billion, ¥87.5 billion lower than the year under review. Domestic revenues are forecast to decrease due to decrease of revenues in Internal Combustion Engine and Machinery, and Pipes, Valves, and Industrial Castings, while revenues in Environmental Engineering are expected to be the same level as the year under review. In overseas markets, although revenues in Pipes, Valves, and Industrial Castings, and Environmental Engineering are expected to increase from the year under review, revenues in Internal Combustion Engine and Machinery are forecast to decrease substantially. As a result, total overseas revenues are forecast to decrease from the year under review.

The Company forecasts operating income of ¥70.0 billion, a decrease of ¥32.8 billion from the year under review, mainly due to significant decrease in revenues and appreciation of yen.

The Company expects income from continuing operation before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies for the next fiscal year to be ¥69.5 billion, a decrease of ¥13.8 billion from the year under review. Net income attributable to Kubota Corporation is forecast to be ¥40.0 billion, a decrease of ¥8.1 billion from the year under review. (The forecasts are based on the assumption of an exchange rate of ¥96=US$1.)

 

*’Net income attributable to Kubota Corporation’ is comparable to ‘Net income’ presented in the year under review.

2. Financial condition

(1) Assets, liabilities and shareholders’ equity

Total assets at the end of March 2009 amounted to ¥1,385.8 billion, decrease of ¥78.4 billion from the end of the prior year. As for assets, current assets slightly decreased. Cash and Cash equivalent decreased and short-term finance receivables decreased resulted from appreciation of yen. And accompanied with reduced sales of trade receivables in North America, trade accounts receivable substantially increased and interest in sold receivables substantially decreased at the same time. Investments and long-term finance receivables substantially decreased due to a decrease in long-term finance receivables resulted from appreciation of yen and shrinkage of unrealized gains of securities affected by stock market slump. Property, plant, and equipment decreased, while other assets increased mainly due to an increase of long-term deferred tax assets.

Regarding liabilities, interest-bearing debt substantially increased resulted from switching funding source from sale of trade receivables to borrowing from financial institutions, while trade notes payable, trade accounts payable and income taxes payable decreased. Accrued retirement and pension costs increased largely, while other long-term liabilities decreased due to a decrease of deferred tax liabilities affected by shrinkage of unrealized gains of securities.

As for shareholders’ equity, total shareholders’ equity decreased. Retained earnings increased steadily due to recorded net income, however accumulated other comprehensive income substantially decreased due to decrease in foreign currency translation adjustments and unrealized losses on securities. Shareholders’ equity ratio was 41.7 %, 2.6 percentage points lower than the prior year end.

(2) Cash flows

Net cash used in operating activities during the year under review was ¥22.6 billion, and cash inflow decreased ¥112.7 billion from the prior year. Cash inflow decreased substantially due to decreased net income, reduced sales of trade receivable in North America and increased inventories. Such amount exceeded cash provided by increase in other current liabilities.

Net cash used in investing activities was ¥74.0 billion, an increase of ¥1.7 billion from the prior year. Cash used in purchases of investments and change in loan receivables increased largely, however, decrease in purchases of fixed assets, increase in proceeds from sales of property, plant, and equipment, and slowdown of increase in finance receivables decreased cash outflow. As a result, net cash used in investing activities was almost same level as the prior year.

Net cash provided by financing activities was ¥84.9 billion, an increase of ¥96.5 billion from the prior year, due to increases in short-term borrowings and long-term debt resulted from switching funding source from sales of trade receivables to borrowing from financial institutions in North America.

Including the effect of exchange rate, cash and cash equivalents at the end of March 2009 were ¥69.5 billion, a decrease of ¥19.3 billion from the prior year.

 

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Kubota Corporation

and Subsidiaries

 

(Reference) Cash flow indices

 

		Year ended March 31, 2009		Year ended March 31, 2008
Ratio of shareholders’ equity to total assets (%)		41.7		44.3
Equity ratio based on market capitalization (%)		49.1		54.1
Interest-bearing debt / Net cash provided by operating activities (year)		—		4.0
Interest coverage ratio (times)		—		7.0

 

Notes.

Equity ratio based on market capitalization : market capitalization / total assets

Interest coverage ratio : cash flows provided by operating activities / interest paid

Each ratio is calculated based on the figures in the consolidated financial statements. Market capitalization is calculated based on closing price at the end of the fiscal year multiplied by the number of shares outstanding at the end of fiscal year, excluding treasury stock. Net cash provided by operating activities are the amount of operating cash flows in the consolidated statements of cash flows. Interest-bearing debt includes short-term borrowings, current portion of long-term debt, and long-term debt in the consolidated balance sheets. Additionally, interest paid is the amount of interest paid in the consolidated statements of cash flows. Among these cash flow indices, ‘Interest-bearing debt / Net cash provided by operating activities’ and ‘Interest coverage ratio’ for the year ended March 31, 2009 were not presented because figure of cash flows provided by operating activities was negative.

3. Matter concerning profit allocation

(1) Basic policy related to the Company’s profit allocation

The Company’s basic policy for the return of profit to shareholders is to maintain stable dividends or raise dividends together with share buy-back and retirement of treasury stock. The Company recognizes returning profit to shareholders is one of the most important missions and will strive to expand it, considering requirements of maintaining sound business operations as well as adapting to the future business environment.

(2) Matter concerning profit allocation for this fiscal year and next fiscal year

The Company has decided to pay ¥35 per ADS as year-end cash dividends. Accordingly, including the interim dividend of ¥35 per ADS already paid, the total dividends for the entire fiscal year will be ¥70 per ADS, which will be the same amount as the prior year.

Specific amount of cash dividends for the year ending March 31, 2010 will be decided based on the development of business performance.

During the year under review the Company purchased 8.40 million of its own shares (¥5.2 billion) on market pursuant to the resolutions of Board of Directors’ Meeting.

 

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Kubota Corporation

and Subsidiaries

 

2. Management Policies

1. Basic management policy

More than a century since its founding, the Company has continued to help improve people’s quality of life, by offering products and services—including farm equipment, pipes for water supply and sewage systems, environmental control plants, industrial castings, and building materials. The Company has its management principle that the Company contributes to the development of society and the preservation of the earth’s environment through its products, technology, and services that provide the foundation for society and for affluent lifestyles. While adhering to this management principle, the Company is implementing management policies that are focused on prioritizing allocation of its resources, emphasizing agility in its operations and strengthening consolidated operations. Through these measures, the Company aims to improve its adaptability to respond with flexibility to the changing times, resulting in a high enterprise value.

2. Principal Business Policies for Medium-to-Long Term Growth in Profit

To realize further development in the medium-to-long term, the Company will implement the following initiatives.

(1) Management Emphasizing the Front-line of Business with a Focus on Technology and Manufacturing Capabilities

To survive and win in increasingly intense global competition, in the medium-to-long term, it will be indispensable for the Company to strengthen its capabilities for developing technologies and its manufacturing capabilities, which are basic functions that manufacturing companies must have. The Company has newly formed its Research & Development Strategy Committee and its Quality Assurance & Manufacturing Strategy Committee and is working to improve its systems for fulfilling its proper roles and moving in the correct directions in the areas of research & development, quality control and manufacturing capabilities. The Company will implement management that emphasizes each of its front-lines for manufacturing, sales, technology, and service as it focuses on technology and manufacturing capabilities.

(2) Promotion of CSR Management

The Company believes that sustained corporate growth and development come from the simultaneous “strengthening of profitability” and “contributing to the development of society and the maintenance of the earth’s environment.” The Company is implementing the following measures to move forward with the promotion of CSR management.

 

•

Kubota will work to substantially raise the level of its environmental protection activities, increase its level of concern for the earth’s environment in all aspects of its business activities, and strengthen its initiatives for reducing the burden its activities place on the natural environment.

 

•

Kubota will respond to the need for the further globalization of its activities by pursuing “management with diversity” by actively drawing on the capabilities of a diverse range of human resources regardless of their gender, age, national original, and other characteristics.

 

•

Kubota will substantially enhance its risk management activities. To this end, it will endeavor to improve the quality of its conduct of business operations by strengthening its operating base through the pursuit of best practices in financial reporting, quality control, environmental preservation, and fair trading as well as strengthen its internal control systems, which are the basis for compliance.

 

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Kubota Corporation

and Subsidiaries

 

(3) Reforms in the Corporate Governance System

Amid the rapidly changing management environment, the Company will seize growth opportunities without fail, and, to survive and win in global competition, it must make strategic decisions more rapidly and build strong business execution functions. With these judgments in mind, the Company introduced Executive Officer System in April 2009 . In parallel with this change, the Company will reduce the number of Directors in order to promote strategic decision-making by Board of Directors more agilely and propose to appoint outside director at the Ordinary General Meeting of Shareholders to be held on June 2009 in order to improve management transparency and maintain soundness of management. The Company will endeavor to speed up its conduct of management by creating and implementing a new governance system at an early date.

(4) Improvement of Capabilities for Responding to Change in the Global Economy

As a result of the rapid expansion in the Company’s overseas business activities, the impacts of trends in the world economy, fluctuations in foreign currency rates, and other circumstances have grown substantially in importance. One of the important issues that the Company must address is the creation as quickly as possible of a business structure that can deal with changes in the global environment properly and quickly.

To find solutions to deal with this issue, it will be indispensable to expand overseas production and to locate production facilities appropriately. Going forward, the Company will take into account the cost-competitiveness of various locations, foreign currency risk, market size, growth potential, and other factors as well as move ahead with the optimization of its production facilities on a worldwide scale. In addition, to strengthen teamwork among production facilities in various locations, the Company will move forward aggressively with measures to standardize Kubota’s production methods.

Other effective measures to be implemented will be the globalization of procurement, the minimization of the effects of currency fluctuations, and the strengthening of competitiveness. The Company’s ratio of overseas procurement is still low, and room is left for expansion of its global procurement. Therefore, along with the optimization of its production system, the Company will optimize its procurement.

In the current unprecedented business environment, it is extremely difficult to expand sales. Thoroughgoing cost-cutting initiatives are essential to secure profitability. The Company must return to the basics as a manufacturer and aggressively implement reductions in variable and fixed costs.

In addition, the Company will be careful to manage its finances in Japan and overseas soundly and cautiously as well as take all appropriate measures in both fund procurement and fund management.

(5) Promotion of Globalization—Accelerating Development of Business Operations in Asia

The Company will proceed to devote corporate resources to its overseas business operations on a priority basis and work toward their expansion. Specifically, in the fields of water and environment, which are global issues, the Company will take up the challenge of using its comprehensive product lineup and technological capabilities in the fields of water treatment and water distribution to develop its international activities. The world markets for water- and environment-related products and services are enormous, and rapid growth is anticipated going forward in Asia, especially in China. To nurture the Company’s water-related business activities into a mainstay business similar to internal combustion engines and machinery today, the Company will work to develop new markets in water-related businesses with strong will.

In the internal combustion engines and machinery business, the Company will concentrate on developing agricultural markets in Asia where major potential for growth exists. Using the know-how it has accumulated through the mechanization of agriculture in Japan, the Company will aim to build its position as the No. 1 agricultural machinery manufacturer in the Asian market and thereby contribute to solving Asia’s food-related issues.

 

 

< Cautionary Statements with Respect to Forward-Looking Statements >

This document may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company’s markets, particularly government agricultural policies, levels of capital expenditures, both in public and private sectors, foreign currency exchange rates, continued competitive pricing pressures in the marketplace, as well as the Company’s ability to continue to gain acceptance of its products.

 

 

 

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Kubota Corporation

and Subsidiaries

 

Consolidated Balance Sheets

 

Assets		(In millions of yen)
		March 31, 2009					March 31, 2008					Change
		Amount			%		Amount			%		Amount
Current assets:
Cash and cash equivalents		69,505					88,784					(19,279	)
Notes and accounts receivable:
Trade notes		65,429					70,645					(5,216	)
Trade accounts		324,583					209,275					115,308
Less: Allowance for doubtful receivables		(2,512	)				(1,983	)				(529	)
Total receivables, net		387,500					277,937					109,563
Short-term finance receivables-net		97,292					113,409					(16,117	)
Inventories		207,401					206,220					1,181
Interest in sold receivables		—					77,767					(77,767	)
Other current assets		54,648					58,521					(3,873	)
Total current assets		816,346			58.9		822,638			56.2		(6,292	)
Investments and long-term finance receivables:
Investments in and loan receivables to affiliated companies		14,511					13,646					865
Other investments		96,197					145,322					(49,125	)
Long-term finance receivables-net		169,257					191,523					(22,266	)
Total investments and long-term finance receivables		279,965			20.2		350,491			23.9		(70,526	)
Property, plant, and equipment:
Land		90,479					92,208					(1,729	)
Buildings		208,901					211,570					(2,669	)
Machinery and equipment		361,323					372,425					(11,102	)
Construction in progress		6,970					6,225					745
Total		667,673					682,428					(14,755	)
Accumulated depreciation		(442,052	)				(444,355	)				2,303
Net property, plant, and equipment		225,621			16.3		238,073			16.3		(12,452	)
Other assets:
Long-term trade accounts receivable		27,071					26,605					466
Other		37,680					27,444					10,236
Less: Allowance for doubtful receivables		(859	)				(981	)				122
Total other assets		63,892			4.6		53,068			3.6		10,824
Total		1,385,824			100.0		1,464,270			100.0		(78,446	)

 

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and Subsidiaries

 

Consolidated Balance Sheets

 

Liabilities and Shareholders’ equity		(In millions of yen)
		March 31, 2009					March 31, 2008					Change
		Amount			%		Amount			%		Amount
Current liabilities:
Short-term borrowings		132,100					113,087					19,013
Trade notes payable		16,405					21,232					(4,827	)
Trade accounts payable		163,222					191,042					(27,820	)
Advances received from customers		6,306					4,748					1,558
Notes and accounts payable for capital expenditures		13,301					15,436					(2,135	)
Accrued payroll costs		26,266					27,680					(1,414	)
Accrued expenses		25,717					32,608					(6,891	)
Income taxes payable		4,733					12,908					(8,175	)
Other current liabilities		45,947					34,744					11,203
Current portion of long-term debt		60,378					65,976					(5,598	)
Total current liabilities		494,375			35.7		519,461			35.5		(25,086	)
Long-term liabilities:
Long-term debt		208,588					183,945					24,643
Accrued retirement and pension costs		56,591					43,790					12,801
Other long-term liabilities		10,027					25,747					(15,720	)
Total long-term liabilities		275,206			19.9		253,482			17.3		21,724
Minority interests		37,959			2.7		43,230			2.9		(5,271	)
Shareholders’ equity:
Common stock		84,070					84,070					—
Capital surplus		93,150					93,150					—
Legal reserve		19,539					19,539					—
Retained earnings		452,791					423,927					28,864
Accumulated other comprehensive income (loss)		(62,184	)				31,177					(93,361	)
Treasury stock		(9,082	)				(3,766	)				(5,316	)
Total shareholders’ equity		578,284			41.7		648,097			44.3		(69,813	)
Total		1,385,824			100.0		1,464,270			100.0		(78,446	)

 

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and Subsidiaries

 

Consolidated Statements of Income

 

		(In millions of yen)
		Year ended March 31, 2009					Year ended March 31, 2008					Change
		Amount			%		Amount			%		Amount			%
Revenues		1,107,482			100.0		1,154,574			100.0		(47,092	)		(4.1	)
Cost of revenues		810,226			73.1		824,093			71.4		(13,867	)		(1.7	)
Selling, general, and administrative expenses		193,426			17.5		192,935			16.7		491			0.3
Loss from disposal and impairment of businesses and fixed assets		1,015			0.1		671			0.0		344			51.3
Operating income		102,815			9.3		136,875			11.9		(34,060	)		(24.9	)
Other income (expenses):
Interest and dividend income		4,822					4,472					350
Interest expense		(2,664	)				(986	)				(1,678	)
Gain (loss) on sales of securities-net		(116	)				704					(820	)
Valuation loss on other investments		(8,618	)				(6,715	)				(1,903	)
Foreign exchange loss-net		(11,525	)				(9,043	)				(2,482	)
Other-net		(1,455	)				(2,730	)				1,275
Other income (expenses), net		(19,556	)				(14,298	)				(5,258	)
Income from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net income of affiliated companies		83,259			7.5		122,577			10.6		(39,318	)		(32.1	)
Income taxes:
Current		23,637					43,929					(20,292	)
Deferred		5,109					4,115					994
Total income taxes		28,746					48,044					(19,298	)
Minority interests in earnings of subsidiaries		6,671					6,790					(119	)
Equity in net income of affiliated companies		222					94					128
Income from continuing operations		48,064			4.3		67,837			5.9		(19,773	)		(29.1	)
Income from discontinued operations, net of taxes		—					189					(189	)
Net income		48,064			4.3		68,026			5.9		(19,962	)		(29.3	)

 

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Consolidated Statements of Comprehensive Income (Loss)

 

		(In millions of yen)
		Year ended March 31, 2009			Year ended March 31, 2008			Change
Net income		48,064			68,026			(19,962	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(51,789	)		(1,425	)		(50,364	)
Unrealized losses on securities		(26,270	)		(36,834	)		10,564
Unrealized losses on derivatives		(1,512	)		(485	)		(1,027	)
Pension liability adjustments		(13,790	)		(16,326	)		2,536
Other comprehensive loss		(93,361	)		(55,070	)		(38,291	)
Comprehensive income (loss)		(45,297	)		12,956			(58,253	)

Consolidated Statements of Shareholders’ Equity

 

		(In millions of yen)
		Shares of common stock outstanding (thousands)			Shareholders’ Equity															Total
					Common stock		Capital surplus		Legal reserve		Retained earnings			Accumulated other comprehensive income (loss)			Treasury stock
Balance, March 31, 2007		1,291,513			84,070		93,150		19,539		376,815			86,247			(184	)		659,637
Cumulative effect of adopting FIN 48											261									261
Net income											68,026									68,026
Other comprehensive loss														(55,070	)					(55,070	)
Cash dividends, ¥65 per ADS											(16,777	)								(16,777	)
Purchase and sale of treasury stock		(10,909	)														(7,980	)		(7,980	)
Retirement of treasury stock											(4,398	)					4,398			—
Balance, March 31, 2008		1,280,604			84,070		93,150		19,539		423,927			31,177			(3,766	)		648,097
Net income											48,064									48,064
Other comprehensive loss														(93,361	)					(93,361	)
Cash dividends, ¥75 per ADS											(19,193	)								(19,193	)
Purchase and sale of treasury stock		(8,541	)								(7	)					(5,316	)		(5,323	)
Balance, March 31, 2009		1,272,063			84,070		93,150		19,539		452,791			(62,184	)		(9,082	)		578,284

 

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Consolidated Statements of Cash Flows

 

		(In millions of yen)
		Year ended March 31, 2009			Year ended March 31, 2008			Change
Operating activities:
Net income		48,064			68,026
Depreciation and amortization		31,242			30,565
Loss (gain) on sales of securities-net		116			(704	)
Valuation loss on other investments		8,618			6,715
Loss (gain) from disposal of fixed asset		(151	)		925
Minority interests in earnings of subsidiaries		6,671			6,790
Equity in net income of affiliated companies		(222	)		(94	)
Deferred income taxes		5,109			4,115
Decrease (increase) in notes and accounts receivable		(128,586	)		31,750
Increase in inventories		(35,636	)		(6,656	)
Decrease (increase) in interest on sold receivables		70,132			(6,763	)
Increase in other current assets		(21,322	)		(13,309	)
Decrease in trade notes and accounts payable		(19,771	)		(23,311	)
Decrease in income taxes payable		(7,008	)		(10,842	)
Increase in other current liabilities		28,727			7,539
Decrease in accrued retirement and pension costs		(10,054	)		(10,998	)
Other		1,494			6,362
Net cash provided by (used in) operating activities		(22,577	)		90,110			(112,687	)
Investing activities:
Purchases of fixed assets		(32,959	)		(35,735	)
Purchases of investments and change in loan receivables		(5,908	)		3,337
Proceeds from sales of property, plant, and equipment		2,961			115
Proceeds from sales of investments		261			490
Increase in finance receivables		(193,495	)		(196,494	)
Collection of finance receivables		154,935			155,202
Other		184			741
Net cash used in investing activities		(74,021	)		(72,344	)		(1,677	)
Financing activities:
Proceeds from issuance of long-term debt		129,967			113,962
Repayments of long-term debt		(74,386	)		(84,895	)
Net increase (decrease) in short-term borrowings		54,619			(15,840	)
Cash dividends		(19,193	)		(16,777	)
Purchase of treasury stock		(5,338	)		(7,997	)
Other		(809	)		(133	)
Net cash provided by (used in) financing activities		84,860			(11,680	)		96,540
Effect of exchange rate changes on cash and cash equivalents		(7,541	)		97			(7,638	)
Net increase (decrease) in cash and cash equivalents		(19,279	)		6,183
Cash and cash equivalents, beginning of year		88,784			82,601
Cash and cash equivalents, end of year		69,505			88,784			(19,279	)
		(In millions of yen)
Notes:
Cash paid during the year for:
Interest		12,768			12,875			(107	)
Income taxes		38,472			56,535			(18,063	)

 

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and Subsidiaries

 

Notes to assumptions for going concern: None

Notes to consolidated financial statements:

 

1.	The United States dollar amounts included herein represent translations using the approximate exchange rate on March 31, 2009, of ¥98 = US$1, solely for convenience.

 

2.	Each American Depositary Share (“ADS”) represents five common shares.

 

3.	111 subsidiaries are consolidated.

 

Major consolidated subsidiaries:		Domestic		Kubota Construction Co., Ltd.
				Kubota Credit Co., Ltd.
				Kubota Environmental Service Co., Ltd.
				Kubota-C.I. Co., Ltd.
		Overseas		Kubota Tractor Corporation
				Kubota Credit Corporation, U.S.A.
				Kubota Manufacturing of America Corporation
				Kubota Engine America Corporation
				Kubota Metal Corporation
				Kubota Baumaschinen GmbH
				Kubota Europe S.A.S.

 

4.	23 affiliated companies are accounted for under the equity method.

 

Major affiliated companies:		Domestic		15 sales companies of farm equipment
				Kubota Matsushitadenko Exterior Works, Ltd.
				Kubota Maison Co., Ltd.

On July 27, 2007, the Company announced that the Company and Urbanex Co., Ltd. have reached a basic agreement to transfer all the shares of Kubota Maison Co., Ltd. (“Kubota Maison”) to Urbanex Co., Ltd. On October 1, 2007, the Company transferred 70% shares of Kubota Maison in accordance with the agreement. As a result of the transfer, Kubota Maison was excluded from consolidated subsidiaries and became an affiliated company of Kubota Corporation. Kubota Maison is not an affiliated company from the fiscal year ending March 31, 2010 by the scheduled transfer of the remaining 30% shares on April 1, 2009.

 

5.	Summary of accounting policies

 

(1)

The accompanying consolidated financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) except for the presentation for segment information described in (2).

 

(2)

The consolidated segment information is prepared in accordance with a requirement of the Financial Instruments and Exchange Act in Japan. This disclosure is not consistent with SFAS No.131, “Disclosures about Segments of an Enterprise and Related Information”.

 

6.	The Company adopted the FASB Statement No. 157, “Fair Value Measurements” from the year ended March 31, 2009. This statement defines fair value, establishes a framework for measuring fair value in U.S. GAAP, and expands disclosures about fair value measurements.

The adoption of this statement did not have a material impact on the Company’s consolidated results of operations and financial position.

 

7.	The consolidated financial reports for the prior year have been reclassified to conform to the presentation for the year ended March 31, 2009.

 

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Fair Value of Other Investments

The Company classifies its holding marketable equity securities and all of its debt securities as available for sale securities, which are reported at their fair value on the Company’s consolidated balance sheets. The following table presents costs, fair values, net unrealized holding gains for securities by major security type at March 31, 2009 and 2008.

 

		(In millions of yen)
		March 31, 2009						March 31, 2008
		Cost		Fair value		Net unrealized holding gains		Cost		Fair value		Net unrealized holding gains
Other Investments (*):
Equity securities of financial institutions		24,412		40,275		15,863		30,813		73,257		42,444
Other equity securities		17,665		40,653		22,988		20,305		61,793		41,488
Total		42,077		80,928		38,851		51,118		135,050		83,932

 

(*) “Other investments” on the Company’s consolidated balance sheets includes investments in non-traded and unaffiliated companies, for which there is no readily determinable fair value. They were stated at cost of ¥15,269 million and ¥10,272 million, at March 31, 2009 and 2008, respectively.

Per Common Share Information

 

		(Yen)
		Year ended March 31, 2009			Year ended March 31, 2008
Shareholders’ equity per common share		¥	454.60		¥	506.09
Basic net income per common share		¥	37.68		¥	52.80
Diluted net income per common share		¥	37.68		¥	52.80

A reconciliation of the numerators and denominators of the basic and diluted net income per common share computation is as follows:

Numerators

 

		(In millions of yen)
		Year ended March 31, 2009			Year ended March 31, 2008
Basic net income		¥	48,064		¥	68,026
Effect of dilutive convertible bonds			—			—
Diluted net income		¥	48,064		¥	68,026
Denominators
		(Thousands of shares)
		Year ended March 31, 2009			Year ended March 31, 2008
Weighted average common shares outstanding			1,275,575			1,288,337
Effect of dilutive convertible bonds			—			—
Diluted common shares outstanding			1,275,575			1,288,337

 

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Consolidated Segment Information

(1) Information by industry segments

Year ended March 31, 2009

 

		(In millions of yen)
		Internal Combustion Engine & Machinery		Pipes, Valves, & Industrial Castings		Environmental Engineering			Other		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		754,416		207,870		74,390			70,806		1,107,482		—			1,107,482
Intersegment		52		446		285			15,861		16,644		(16,644	)		—
Total		754,468		208,316		74,675			86,667		1,124,126		(16,644	)		1,107,482
Cost of revenues and operating expenses		650,637		197,004		75,760			83,957		1,007,358		(2,691	)		1,004,667
Operating income (loss)		103,831		11,312		(1,085	)		2,710		116,768		(13,953	)		102,815
Identifiable assets at March 31, 2009		899,104		188,671		55,936			81,358		1,225,069		160,755			1,385,824
Depreciation		20,040		6,424		636			1,440		28,540		1,927			30,467
Loss from impairment		—		733		—			—		733		15			748
Capital expenditures		24,072		5,804		813			1,274		31,963		1,374			33,337
Year ended March 31, 2008
		(In millions of yen)
		Internal Combustion Engine & Machinery		Pipes, Valves, & Industrial Castings		Environmental Engineering			Other		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		793,654		201,599		70,878			88,443		1,154,574		—			1,154,574
Intersegment		16		485		97			15,551		16,149		(16,149	)		—
Total		793,670		202,084		70,975			103,994		1,170,723		(16,149	)		1,154,574
Cost of revenues and operating expenses		660,709		186,849		75,997			95,427		1,018,982		(1,283	)		1,017,699
Operating income (loss)		132,961		15,235		(5,022	)		8,567		151,741		(14,866	)		136,875
Identifiable assets at March 31, 2008		932,231		192,433		59,149			79,796		1,263,609		200,661			1,464,270
Depreciation		19,791		6,341		547			1,347		28,026		2,093			30,119
Loss from impairment		8		114		—			—		122		15			137
Capital expenditures		26,798		5,251		591			1,794		34,434		729			35,163

 

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and Subsidiaries

 

Consolidated Segment Information

(2) Information by geographic segments

Year ended March 31, 2009

 

		(In millions of yen)
		Japan		North America		Europe		Asia		Other Areas		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		588,236		280,231		102,746		122,248		14,021		1,107,482		—			1,107,482
Intersegment		259,324		9,588		3,420		1,153		—		273,485		(273,485	)		—
Total		847,560		289,819		106,166		123,401		14,021		1,380,967		(273,485	)		1,107,482
Cost of revenues and operating expenses		795,095		262,515		99,520		108,600		11,930		1,277,660		(272,993	)		1,004,667
Operating income		52,465		27,304		6,646		14,801		2,091		103,307		(492	)		102,815
Identifiable assets at March 31, 2009		675,623		429,974		69,960		118,220		7,908		1,301,685		84,139			1,385,824
Year ended March 31, 2008
		(In millions of yen)
		Japan		North America		Europe		Asia		Other Areas		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		607,377		332,042		121,114		79,483		14,558		1,154,574		—			1,154,574
Intersegment		292,371		9,160		4,142		1,623		—		307,296		(307,296	)		—
Total		899,748		341,202		125,256		81,106		14,558		1,461,870		(307,296	)		1,154,574
Cost of revenues and operating expenses		806,786		305,194		114,224		71,808		12,444		1,310,456		(292,757	)		1,017,699
Operating income		92,962		36,008		11,032		9,298		2,114		151,414		(14,539	)		136,875
Identifiable assets at March 31, 2008		716,207		487,654		82,992		88,882		11,314		1,387,049		77,221			1,464,270

(3) Overseas revenues

Year ended March 31, 2009

 

		(In millions of yen)
		North America			Europe			Asia			Other Areas			Total
Overseas revenues		274,151			108,742			139,069			36,331			558,293
Consolidated revenues														1,107,482
Ratio of overseas revenues to consolidated revenues		24.7	%		9.8	%		12.6	%		3.3	%		50.4	%
Year ended March 31, 2008
		(In millions of yen)
		North America			Europe			Asia			Other Areas			Total
Overseas revenues		329,495			125,388			93,014			34,441			582,338
Consolidated revenues														1,154,574
Ratio of overseas revenues to consolidated revenues		28.5	%		10.9	%		8.0	%		3.0	%		50.4	%

 

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and Subsidiaries

 

Consolidated Revenues by Industry Segment

		(In millions of yen)
		Year ended March 31, 2009				Year ended March 31, 2008				Change
		Amount		%		Amount		%		Amount			%
Farm Equipment and Engines		671,292		60.6		677,074		58.6		(5,782	)		(0.9	)
Domestic		214,905				218,828				(3,923	)		(1.8	)
Overseas		456,387				458,246				(1,859	)		(0.4	)
Construction Machinery		83,124		7.5		116,580		10.1		(33,456	)		(28.7	)
Domestic		20,249				29,488				(9,239	)		(31.3	)
Overseas		62,875				87,092				(24,217	)		(27.8	)
Internal Combustion Engine and Machinery		754,416		68.1		793,654		68.7		(39,238	)		(4.9	)
Domestic		235,154		21.2		248,316		21.5		(13,162	)		(5.3	)
Overseas		519,262		46.9		545,338		47.2		(26,076	)		(4.8	)
Pipes and Valves		164,797		14.9		151,846		13.2		12,951			8.5
Domestic		153,190				144,949				8,241			5.7
Overseas		11,607				6,897				4,710			68.3
Industrial Castings		43,073		3.9		49,753		4.3		(6,680	)		(13.4	)
Domestic		22,862				26,100				(3,238	)		(12.4	)
Overseas		20,211				23,653				(3,442	)		(14.6	)
Pipes, Valves, and Industrial Castings		207,870		18.8		201,599		17.5		6,271			3.1
Domestic		176,052		15.9		171,049		14.8		5,003			2.9
Overseas		31,818		2.9		30,550		2.7		1,268			4.2
Environmental Engineering		74,390		6.7		70,878		6.1		3,512			5.0
Domestic		68,885		6.2		64,934		5.6		3,951			6.1
Overseas		5,505		0.5		5,944		0.5		(439	)		(7.4	)
Building Materials and Housing		6,371		0.6		9,931		0.9		(3,560	)		(35.8	)
Domestic		6,371				9,931				(3,560	)		(35.8	)
Other		64,435		5.8		78,512		6.8		(14,077	)		(17.9	)
Domestic		62,727				78,006				(15,279	)		(19.6	)
Overseas		1,708				506				1,202			237.5
Other		70,806		6.4		88,443		7.7		(17,637	)		(19.9	)
Domestic		69,098		6.3		87,937		7.7		(18,839	)		(21.4	)
Overseas		1,708		0.1		506		0.0		1,202			237.5
Total		1,107,482		100.0		1,154,574		100.0		(47,092	)		(4.1	)
Domestic		549,189		49.6		572,236		49.6		(23,047	)		(4.0	)
Overseas		558,293		50.4		582,338		50.4		(24,045	)		(4.1	)

 

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Kubota Corporation

and Subsidiaries

 

Anticipated Consolidated Revenues by Industry Segment

 

		(In billions of yen)
		Year ending March 31, 2010				Year ended March 31, 2009				Change
		Amount		%		Amount		%		Amount			%
Domestic		232.0				235.1				(3.1	)		(1.3	)
Overseas		447.0				519.3				(72.3	)		(13.9	)
Internal Combustion Engine and Machinery		679.0		66.6		754.4		68.1		(75.4	)		(10.0	)
Domestic		158.0				176.1				(18.1	)		(10.3	)
Overseas		39.5				31.8				7.7			24.2
Pipes, Valves, and Industrial Castings		197.5		19.3		207.9		18.8		(10.4	)		(5.0	)
Domestic		69.0				68.9				0.1			0.1
Overseas		8.5				5.5				3.0			54.5
Environmental Engineering		77.5		7.6		74.4		6.7		3.1			4.2
Domestic		65.0				69.1				(4.1	)		(5.9	)
Overseas		1.0				1.7				(0.7	)		(41.2	)
Other		66.0		6.5		70.8		6.4		(4.8	)		(6.8	)
Total		1,020.0		100.0		1,107.5		100.0		(87.5	)		(7.9	)
Domestic		524.0		51.4		549.2		49.6		(25.2	)		(4.6	)
Overseas		496.0		48.6		558.3		50.4		(62.3	)		(11.2	)

 

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Kubota Corporation

and Subsidiaries

 

Balance Sheets (Non-consolidated)

 

Assets		In millions of yen
		March 31, 2009					March 31, 2008					Change
		Amount			%		Amount			%		Amount
Current assets:		394,552			53.6		423,514			52.0		(28,961	)
Cash and deposits		27,523					37,911					(10,387	)
Trade notes receivable		33,831					34,403					(572	)
Trade accounts receivable		203,008					228,207					(25,198	)
Finished goods		47,459					45,273					2,186
Work in process		21,910					21,227					682
Raw materials and supplies		9,025					7,208					1,816
Prepaid expenses		416					331					85
Deferred tax assets		8,852					8,914					(62	)
Short-term loans receivable		27,221					28,468					(1,246	)
Other		15,623					11,838					3,785
Allowance for doubtful receivables		(320	)				(270	)				(50	)
Long-term assets:		341,943			46.4		391,371			48.0		(49,428	)
Property, plant, and equipment, net of accumulated depreciation:		159,529			21.6		163,172			20.0		(3,642	)
Buildings		38,779					39,415					(635	)
Structures		5,300					5,523					(222	)
Machinery and equipment		27,763					29,375					(1,612	)
Transportation equipment		155					144					11
Tools, furniture and fixtures		5,815					4,413					1,402
Land		79,413					80,938					(1,525	)
Construction in progress		2,301					3,362					(1,060	)
Intangibles:		2,977			0.4		2,601			0.3		376
Industrial rights		1					3					(2	)
Leasehold rights		24					24					—
Facility utility rights		263					264					(1	)
Software		2,688					2,309					379
Investments:		179,436			24.4		225,598			27.7		(46,161	)
Investment securities		94,492					143,506					(49,013	)
Stock investments in subsidiaries and affiliated companies		54,270					53,214					1,055
Other investments		11					8					3
Other investments in subsidiaries and affiliated companies		3,733					3,265					467
Long-term loans receivable		26,363					25,355					1,008
Long-term loans receivable from employees		10					32					(21	)
Long-term prepaid expenses		837					252					584
Deferred tax assets		327					—					327
Other		7,162					7,660					(497	)
Allowance for doubtful receivables		(7,772	)				(7 696	)				(75	)
Total assets		736,496			100.0		814,886			100.0		(78,390	)

 

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Kubota Corporation

and Subsidiaries

 

Balance Sheets (Non-consolidated)

 

Liabilities and net assets		(In millions of yen)
		March 31, 2009						March 31, 2008						Change
		Amount			%			Amount			%			Amount
Current liabilities:		237,997			32.3			251,157			30.8			(13,160	)
Trade notes payable		5,563						7,019						(1,455	)
Trade accounts payable		121,659						148,658						(26,999	)
Short-term borrowings		22,512						18,524						3,987
Lease obligations		913						—						913
Other accounts payable		19,198						13,205						5,992
Income tax payable		—						6,058						(6,058	)
Accrued expenses		29,115						32,187						(3,071	)
Advances received from customers		4,573						1,790						2,782
Deposits received		22,600						20,757						1,843
Provision for warranty costs		3,112						2,710						401
Provision for directors’ bonuses		170						232						(62	)
Other		8,578						11						8,566
Long-term liabilities:		89 435			12.2			103,780			12.8			(14,344	)
Bonds		40,000						40,000						—
Long-term borrowings		30,500						29,012						1,487
Lease obligations		1,485						—						1,485
Deferred tax liabilities		—						11,819						(11,819	)
Liabilities for severance payments to the employees		10,273						15,640						(5,367	)
Other		7,177						7,308						(131	)
Total liabilities		327,432			44.5			354,937			43.6			(27,504	)
Shareholders’ equity		383,478			52.0			404,136			49.6			(20,658	)
Common stock		84,070			11.4			84,070			10.3			—
Capital surplus:		73,057			9.9			73,057			9.0			—
Additional paid-in capital		73,057						73,057						—
Retained earnings:		235,282			31.9			250,632			30.8			(15,350	)
Legal reserve		19,539						19,539						—
Other retained earnings:		215,742						231,093						(15,350	)
Reserve for special depreciation		33						44						(10	)
General reserve		211,742						202,442						9,300
Unappropriated retained earnings		3,967						28,607						(24,640	)
Treasury stock		(8,931	)		(1.2	)		(3,623	)		(0.5	)		(5,037	)
Valuation, translation adjustments and others		25,585			3.5			55,812			6.8			(30,226	)
Unrealized holding gain on securities		25,576						55,810						(30,234	)
Unrealized gain from hedging activities		9						1						7
Total net assets		409,063			55.5			459,948			56.4			(50,885	)
Total liabilities and net assets		736,496			100.0			814,886			100.0			(78,390	)

 

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Kubota Corporation

and Subsidiaries

 

Statements of Income (Non-consolidated)

 

		(In millions of yen)
		Year ended March 31, 2009				Year ended March 31, 2008				Change
		Amount		%		Amount		%		Amount			%
Net sales		643,090		100.0		685,431		100.0		(42,340	)		(6.2	)
Cost of sales		521,796		81.1		526,888		76.9		(5,092	)		(1.0	)
Gross profit		121,294		18.9		158,543		23.1		(37,248	)		(23.5	)
Selling, general and administrative expenses		93,450		14.6		96,611		14.1		(3,160	)		(3.3	)
Operating income		27,844		4.3		61,932		9.0		(34,087	)		(55.0	)
Non-operating income:		14,079				18,138				(4,059	)
Interest income		759				735				24
Dividend income		4,999				6,69				(1,699	)
Other		8,320				10,704				(2,383	)
Non-operating expenses:		16,263				15,712				551
Interest expense		1,278				1,078				200
Other		14,985				14,634				351
Ordinary income		25,659		4.0		64,357		9.4		(38,698	)		(60.1	)
Extraordinary losses:		11,716				—				11,716
Surcharge on the Anti-Monopoly Law		7,284				—				7,284
Valuation losses on investment securities		2,780				—				2,780
Impairment losses on fixed assets		1,650				—				1,650
Income before income taxes		13,943		2.2		64,357		9.4		(50,414	)		(78.3	)
Income taxes:		10,094				31,451				(21,357	)
Current		1,519				17,525				(16,006	)
Previous years		—				5,353				(5,353	)
Deferred		8,575				8,573				1
Net income		3,849		0.6		32,906		4.8		(29,056	)		(88.3	)

 

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Kubota Corporation

and Subsidiaries

 

Statement of Changes in Net Assets (Non-consolidated)

Year ended March 31, 2009

 

		(In millions of yen)
		Shareholders’ equity																				Valuation, translation adjustments and others								Total net assets
		Common stock		Capital surplus		Retained earnings										Treasury stock			Total shareholders’ equity			Unrealized holding gain on securities			Unrealized gain from hedging activities		Total valuation, translation adjustments and others
				Additional paid-in capital		Legal reserve		Other retained earnings
								Reserve for special depreciation			General reserve		Unappro -priated retained earnings
Balance, March 31, 2008		84,070		73,057		19,539		44			202,442		28,607			(3,623	)		404,136			55,810			1		55,812			459,948
Changes in this fiscal year
Transfer of reserve for special depreciation								2					(2	)					—								—			—
Reversal of reserve for special depreciation								(12	)				12						—								—			—
Transfer of general reserve											9,300		(9,300	)					—								—			—
Dividends													(19,193	)					(19,193	)							—			(19,193	)
Net income													3,849						3,849								—			3,849
Purchase of treasury stock																(5,337	)		(5,337	)							—			(5,337	)
Disposal of treasury stock													(7	)		30			22								—			22
Net change of items other than shareholders’ equity																			—			(30,234	)		7		(30,226	)		(30,226	)
Total changes in this fiscal year		—		—		—		(10	)		9,300		(24,640	)		(5,307	)		(20,658	)		(30,234	)		7		(30,226	)		(50,885	)
Balance, March 31, 2009		84,070		73,057		19,539		33			211,742		3,967			(8,931	)		383,478			25,576			9		25,585			409,063

Year ended March 31, 2008

 

		(In millions of yen)
		Shareholders’ equity																				Valuation, translation adjustments and others								Total net assets
		Common stock		Capital surplus		Retained earnings										Treasury stock			Total shareholders’ equity			Unrealized holding gain on securities			Unrealized gain from hedging activities		Total valuation, translation adjustments and others
				Additional paid-in capital		Legal reserve		Other retained earnings
								Reserve for special depreciation			General reserve		Unappro -priated retained earnings
Balance, March 31, 2007		84,070		73,057		19,539		35			184,342		34,984			(41	)		395,987			96,380			0		96,381			492,369
Changes in this fiscal year
Transfer of reserve for special depreciation								22					(22	)					—								—			—
Reversal of reserve for special depreciation								(14	)				14						—								—			—
Transfer of general reserve											18,100		(18,100	)					—								—			—
Dividends													(16,776	)					(16,776	)							—			(16,776	)
Net income													32,906						32,906								—			32,906
Purchase of treasury stock																(7,997	)		(7,997	)							—			(7,997	)
Disposal and retirement of treasury stock													(4,398	)		4,415			17								—			17
Net change of items other than shareholders’ equity																			—			(40,569	)		0		(40,569	)		(40,569	)
Total changes in this fiscal year		—		—		—		8			18,100		(6,377	)		(3,582	)		8,148			(40,569	)		0		(40,569	)		(32,420	)
Balance, March 31, 2008		84,070		73,057		19,539		44			202,442		28,607			(3,623	)		404,136			55,810			1		55,812			459,948

 

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and Subsidiaries

 

<Reference>

Results for Three Months Ended March 31, 2009

Consolidated Statements of Income

 

 

		(In millions of yen)
		Three months ended March 31, 2009
		Amount			%
Revenues		265,837			100.0
Cost of revenues		204,050			76.7
Selling, general, and administrative expenses		55,774			21.0
Gain on disposal of fixed assets		(511	)		(0.2	)
Operating income		6,524			2.5
Other income (expenses):
Interest and dividend income		522
Interest expense		(855	)
Loss on sales of securities -net		(132	)
Valuation loss on other investments		(7,864	)
Foreign exchange gain -net		248
Other -net		(517	)
Other income (expenses), net		(8,598	)
Loss from continuing operations before income taxes, minority interests in earnings of subsidiaries, and equity in net loss of affiliated companies		(2,074	)		(0.8	)
Income taxes		(4,654	)
Minority interests in earnings of subsidiaries		466
Equity in net loss of affiliated companies		(530	)
Income from continuing operations		1,584			0.6
Income from discontinued operations, net of taxes		—
Net income		1,584			0.6
		(In yen)
Basic earnings per ADS (5 common shares):		6.23
Diluted earnings per ADS (5 common shares):		6.23

 

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and Subsidiaries

 

<Reference>

Results for Three Months Ended March 31, 2009

Consolidated Segment Information

(1) Information by industry segments

Three months ended March 31, 2009

 

		(In millions of yen)
		Internal Combustion Engine & Machinery		Pipes, Valves, & Industrial Castings		Environmental Engineering		Other		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		153,888		55,745		36,744		19,460		265,837		—			265,837
Intersegment		28		205		181		4,515		4,929		(4,929	)		—
Total		153,916		55,950		36,925		23,975		270,766		(4,929	)		265,837
Cost of revenues and operating expenses		149,305		55,664		33,159		23,766		261,894		(2,581	)		259,313
Operating income		4,611		286		3,766		209		8,872		(2,348	)		6,524

(2) Information by geographic segments

Three months ended March 31, 2009

 

		(In millions of yen)
		Japan		North America		Europe			Asia		Other Areas		Total		Corporate & Eliminations			Consolidated
Revenues
Unaffiliated customers		163,813		56,741		14,311			28,514		2,458		265,837		—			265,837
Intersegment		50,013		1,719		490			181		—		52,403		(52,403	)		—
Total		213,826		58,460		14,801			28,695		2,458		318,240		(52,403	)		265,837
Cost of revenues and operating expenses		208,998		55,372		16,535			26,842		2,166		309,913		(50,600	)		259,313
Operating income (loss)		4,828		3,088		(1,734	)		1,853		292		8,327		(1,803	)		6,524

(3) Overseas revenues

Three months ended March 31, 2009

 

		(In millions of yen)
		North America			Europe			Asia			Other Areas			Total
Overseas revenues		53,974			15,794			33,066			8,285			111,119
Consolidated revenues														265,837
Ratio of overseas revenues to consolidated revenues		20.3	%		6.0	%		12.4	%		3.1	%		41.8	%

 

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and Subsidiaries

 

<Reference>

Results for Three Months Ended March 31, 2009

Consolidated Revenues by Industry Segment

 

 

 

 

		(In millions of yen)
		Three months ended March 31, 2009
		Amount		%
Farm Equipment and Engines		144,163		54.2
Domestic		48,975
Overseas		95,188
Construction Machinery		9,725		3.7
Domestic		4,519
Overseas		5,206
Internal Combustion Engine and Machinery		153,888		57.9
Domestic		53,494		20.1
Overseas		100,394		37.8
Pipes and Valves		44,882		16.9
Domestic		41,596
Overseas		3,286
Industrial Castings		10,863		4.1
Domestic		6,116
Overseas		4,747
Pipes, Valves, and Industrial Castings		55,745		21.0
Domestic		47,712		18.0
Overseas		8,033		3.0
Environmental Engineering		36,744		13.8
Domestic		34,574		13.0
Overseas		2,170		0.8
Building Materials and Housing		1,451		0.5
Domestic		1,451
Other		18,009		6.8
Domestic		17,487
Overseas		522
Other		19,460		7.3
Domestic		18,938		7.1
Overseas		522		0.2
Total		265,837		100.0
Domestic		154,718		58.2
Overseas		111,119		41.8

 

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Kubota Corporation

and Subsidiaries

 

Notice of Change of Management

(Effective as of June 19, 2009)

1) Appointment of new Directors

 

Name		Current Title
Yuzuru Mizuno		Corporate Auditor of Kubota Corporation
		Executive Vice President of Matsushita Real Estate Co., Ltd.
Kan Trakulhoon		President and CEO, Siam Cement Group (SCG)

 

* Messrs. Yuzuru Mizuno and Kan Trakulhoon are candidates for outside Directors.

2) Appointment of new Corporate Auditors

 

Name		Current Title
Toshihiro Fukuda		Director of Kubota Corporation
Masao Morishita		ex- Matsushita Electric Industrial Co., Ltd.
		(subsequently, Panasonic Corporation)

 

* Mr. Masao Morishita is a candidate for outside Corporate Auditor.

3) Retirement from Directors (Expiration of the term of offices)

 

Name		New title after retirement
Toshihiro Fukuda		Corporate Auditor of Kubota Corporation
Eisaku Shinohara		Senior Managing Executive Officer
Yoshihiko Tabata		Chairman of Kubota Systems Inc. (Date of assuming office: April 1,2009)
Kazunobu Ueta		Chairman of Kubota Credit Co., Ltd. (Date of assuming office: April 1,2009)
Morimitsu Katayama		Managing Executive Officer
Nobuyuki Toshikuni		Managing Executive Officer
Masayoshi Kitaoka		Managing Executive Officer
Masatoshi Kimata		Managing Executive Officer
Nobuyo Shioji		Managing Executive Officer
Takeshi Torigoe		Managing Executive Officer
Hideki Iwabu		Managing Executive Officer
Takashi Yoshii		Executive Officer
Kohkichi Uji		Executive Officer
Toshihiro Kubo		Executive Officer
Kenshiro Ogawa		Executive Officer
Tetsu Fukui		Executive Officer
Satoshi Iida		Executive Officer
Shigeru Kimura		Executive Officer

4) Retirement from Corporate Auditors (Expiration of the term of offices)

 

Name		New title after retirement
Junichi Maeda		Corporate Auditor of Kubota-C.I. Co., Ltd.
Yuzuru Mizuno		Director of Kubota Corporation

End of document

 

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May 13, 2009

To whom it may concern

Kubota Corporation

2-47, Shikitsu-higashi 1-chome,

Naniwa-ku, Osaka 556-8601, Japan

Contact: IR Group

Finance & Accounting Department

Phone: +81-6-6648-2645

Notice on an distribution of retained earnings

Please be advised that Kubota Corporation (hereinafter “the Company”) resolved at the Board of Directors’ Meeting held on May 13, 2009 that the Company would distribute retained earnings as the record date was March 31, 2009.

1. Details of year-end dividend

 

		Year-end dividend		Latest forecast (Released on February 10, 2009)		Comparable previous year (Year ended March 31, 2008)
Record date		March 31, 2009		March 31, 2009		March 31, 2008
Dividend per ADS		¥35		¥35		¥40
Amount of dividend		¥8,907 million		—		¥10,247 million
Date of payment		June 22, 2009		—		June 23, 2008
Resource of dividend		Retained earnings		—		Retained earnings

 

ADS: American Depositary Receipt

2. Reasons for raising dividend

The Company’s basic policy for the return of profit to shareholders is to maintain stable dividends or raise dividends together with share buy-back and retirement of treasury stock. The Company recognizes returning profit to shareholders is one of the most important missions.

In order to advance these activities and considering the Company’s current business performance, the Company decided to pay annual dividend per ADS would be ¥70, the same amount as annual dividend in the previous year.

Accordingly the year-end dividend for the year ended March 31, 2008 is ¥35 per ADS, in addition to the interim dividend of ¥35 already paid.

 

		(per ADS)
		Interim dividend		Year-end dividend		Annual dividend
This fiscal year (Year ended March 31, 2009)		¥35		¥35		¥70
Comparable previous year (Year ended March 31, 2008)		¥30		¥40		¥70

 

< Cautionary Statements with Respect to Forward-Looking Statements >   This document may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company’s markets, particularly government agricultural policies, levels of capital expenditures, both in public and private sectors, foreign currency exchange rates, continued competitive pricing pressures in the marketplace, as well as the Company’s ability to continue to gain acceptance of its products.

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May 13, 2009

To whom it may concern

Kubota Corporation

2-47, Shikitsu-higashi 1-chome,

Naniwa-ku, Osaka 556-8601, Japan

Contact: IR Group

Finance & Accounting Department

Phone: +81-6-6648-2645

Basic policy regarding reduction of trading unit of the Company’s stock

Kubota Corporation (hereinafter “the Company”) believes that reduction of trading unit is one of the effective measures to enhance liquidity of the Company’s stock and the diversity of shareholders, which is deemed to be one of the important considerations by the Company.

However, the Company believes that the implementation of reduction of trading unit should be examined in careful consideration of price and liquidity of the Company’s stock, financial results of the Company and expenses.

 

< Cautionary Statements with Respect to Forward-Looking Statements >   This document may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company’s markets, particularly government agricultural policies, levels of capital expenditures, both in public and private sectors, foreign currency exchange rates, continued competitive pricing pressures in the marketplace, as well as the Company’s ability to continue to gain acceptance of its products.

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May 13, 2009

To whom it may concern

Kubota Corporation

2-47, Shikitsu-higashi 1-chome,

Naniwa-ku, Osaka 556-8601, Japan

Contact: IR Group

Finance & Accounting Department

Phone: +81-6-6648-2645

Notice on amendment to Articles of Incorporation

Please be advised that Kubota Corporation (hereinafter “the Company”), at its Board of Directors’ Meeting held on May 13, 2009, resolved to propose an agenda to amend its Articles of Incorporation at the Ordinary General Meeting of Shareholders to be held on June 19, 2009.

1. Purposes of the amendments

 

(1)

In response to the computerization of stock certificate implemented from January 5, 2009 in Japan, the Company will make amendments including deletions of provisions related to real face of stock certificate. Additionally, the Company will add Supplemental Provisions in the Articles of Incorporation to settle transitional measure related to this amendment.

 

(2)

The Company will establish a provision of Executive Officers in response to introduction of the Executive Officer System and make amendment provisions, including reducing number of Directors, related to reforming management systems.

 

(3)

The Company will also make other necessary amendments.

2. Schedule

 

The date of the Ordinary General Meeting of Shareholders for the amendments:		June 19, 2009
The date that amended Articles of Incorporation will be effective:		June 19, 2009

 

< Cautionary Statements with Respect to Forward-Looking Statements >   This document may contain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results may differ materially from what is forecast in forward-looking statements due to a variety of factors, including, without limitation: general economic conditions in the Company’s markets, particularly government agricultural policies, levels of capital expenditures, both in public and private sectors, foreign currency exchange rates, continued competitive pricing pressures in the marketplace, as well as the Company’s ability to continue to gain acceptance of its products.

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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.

 

		KUBOTA CORPORATION
Date: May 15, 2009		By:		/s/ Shigeru Kimura
		Name:		Shigeru Kimura
		Title:		Director, Member of the Board
				General Manager of Finance & Accounting