Makita Corporation: history, ownership, mission, how it works & makes money

A Brief History of Makita Corporation

Founded in 1915, Makita Corporation has evolved from a small electric motor sales company in Japan to a leading global manufacturer of power tools and accessories. The company initially started in Nagoya, Japan, focusing on the repair and sales of electric motors. In 1958, Makita introduced its first power tool, the electric planers.

By 1970, Makita began its international expansion. The first overseas subsidiary was established in the United States, followed by additional subsidiaries in key markets such as Europe and Australia. In the early 1980s, Makita introduced its first cordless power tool, the 7.2V cordless drill, which set the stage for further innovations in battery technology.

In 2012, Makita made headlines by reporting record revenues. For the fiscal year ending March 31, 2012, the company achieved consolidated net sales of ¥346.5 billion (approximately $4.5 billion) with a net profit of ¥29.3 billion ($370 million), demonstrating robust growth in both domestic and international markets.

Makita continued to innovate, investing heavily in research and development. By 2021, the company launched over 100 new products and expanded its range of cordless tools, including the 40V MAX XGT line, which features advanced battery technology for longer runtime and performance.

The revenue for the fiscal year ending March 31, 2023, reached ¥509.0 billion (approximately $4.7 billion), with net profit reported at ¥43.7 billion ($410 million). The company attributed this performance to strong demand in both the professional and DIY segments.

As of October 2023, Makita Corporation has a market capitalization of around $11 billion. The company operates in over 40 countries with more than 150 subsidiaries. Its commitment to sustainability is evident in its eco-friendly manufacturing practices and the introduction of the Makita Green product line.

Over the years, Makita has maintained a strong presence in the global market, consistently ranking among the top manufacturers in the power tools sector. The company has also continued to enhance its distribution network, ensuring that its products reach customers efficiently.

Makita Corporation's stock is traded on the Tokyo Stock Exchange under the ticker symbol 6586. The stock has shown resilience, with a year-to-date return of approximately 25% as of October 2023, reflecting the company’s strong operational performance and strategic expansions.

A Who Owns Makita Corporation

Makita Corporation, established in 1915, is a leading manufacturer of power tools. The company is publicly traded on the Tokyo Stock Exchange under the ticker symbol 6586. As of the latest data, the share price of Makita hovers around JPY 3,200, reflecting a market capitalization of approximately JPY 1.1 trillion.

The ownership structure of Makita is diverse, comprising institutional investors, individual shareholders, and company insiders. Based on the latest financial disclosure, the following table summarizes the top shareholders:

As of the last fiscal year ending March 2023, Makita reported a revenue of approximately JPY 453 billion, with a net income of JPY 38 billion, translating to an earnings per share (EPS) of about JPY 119.

The company has maintained a dividend payout ratio around 40%, offering dividends per share of JPY 48 in the most recent fiscal year.

Moreover, Makita has been actively pursuing global expansion, which has influenced its stock performance. In 2022, the company acquired several brands, enhancing its portfolio and market reach significantly.

Internationally, prominent institutional investors have shown interest in Makita, impacting its stock liquidity and performance metrics. Recent reports show that approximately 30% of shares are held by foreign investors, signaling strong international confidence in the company's operations and growth potential.

Makita Corporation Mission Statement

Makita Corporation is a globally recognized manufacturer of power tools and equipment. Established in 1915, the company has evolved from a small electric motor sales company to an industry leader in tools and technology. The mission statement emphasizes their commitment to quality, innovation, and customer satisfaction.

The mission statement of Makita Corporation is centered around the idea of providing high-quality products that meet the needs of professionals in various industries. This commitment is reflected in their research and development investments, which were approximately $154 million in 2022, signifying a focus on innovation to improve product offerings.

As of the fiscal year ending March 2023, Makita reported a net sales figure of $4.69 billion, showcasing a year-over-year increase of 10.6%. This growth can be attributed to their extensive product range and a strong emphasis on customer-focused solutions.

Makita's dedication to sustainability is also evident in their operations, where they aim to reduce their carbon footprint by utilizing energy-efficient technologies. For instance, over the last year, the company has increased its production of battery-powered tools, with sales of cordless tools accounting for 67% of total sales in 2023.

To further understand the impact of their mission on market performance, the following table outlines key financial metrics for Makita Corporation from the last fiscal year:

Overall, the mission statement of Makita Corporation is not just a declaration of its goals but a reflection of its ongoing strategies to expand its market presence while maintaining a commitment to quality, innovation, and sustainability. Their financial performance and growth metrics further underscore the success of this mission in the competitive landscape of power tools and equipment.

How Makita Corporation Works

Makita Corporation, a leading manufacturer of power tools and outdoor equipment, operates primarily through its expansive production and distribution network. Founded in 1915 and headquartered in AnJO, Japan, Makita has grown to become a global entity. As of fiscal year 2022, the company reported net sales of approximately ¥576.6 billion (around $5.4 billion USD).

The company's business segments include Power Tools, Outdoor Power Equipment, and Accessories. In FY 2022, Power Tools accounted for about 82% of total sales, while Outdoor Power Equipment contributed around 11%, followed by Accessories at 7%.

Geographically, Makita generates revenue from various regions, with a significant portion derived from North America, followed by Asia and Europe. In FY 2022, North America represented approximately 60% of overall sales, which showcases the market's importance to the company's financial health.

Makita's operational model leans heavily on innovation and quality control, which underpins its competitive edge. The company has invested over 6% of its annual sales in research and development to innovate and enhance its product line. In FY 2022, R&D expenditures amounted to approximately ¥34.6 billion (around $325 million USD).

Additionally, Makita has maintained a robust manufacturing presence, operating 10 production sites globally, including in Japan, China, the United States, and the United Kingdom. These facilities enable the company to produce a diverse range of tools and equipment, meeting the demands of different markets efficiently.

Furthermore, in terms of workforce, Makita employed over 13,000 individuals worldwide as of FY 2022, reflecting the scale of its operations and commitment to maintaining a skilled labor force that supports its manufacturing and distribution goals.

Financially, Makita demonstrated strong performance metrics in the last fiscal year. The company reported an operating profit of approximately ¥82.5 billion (around $775 million USD), resulting in an operating margin of 14.3%, signaling healthy profitability relative to sales.

Makita's stock performance on the Tokyo Stock Exchange (TSE) also illustrates investor confidence. The company's share price reached a high of ¥4,800 in November 2022, maintaining a market capitalization of approximately ¥700 billion (around $6.5 billion USD) as of the same period.

The strategic partnerships and expansion into emerging markets have played a crucial role in Makita's growth trajectory. The company aims to capitalize on the increasing demand for eco-friendly products by expanding its range of battery-operated tools and outdoor equipment, aligning with global trends toward sustainability.

Overall, Makita Corporation's business model is characterized by its commitment to quality, innovation, and strategic market positioning, enabling it to maintain a leading role in the competitive power tools and outdoor equipment sectors.

How Makita Corporation Makes Money

Makita Corporation, a leading manufacturer of power tools and outdoor equipment, generates revenue through several key segments. The company's primary source of income comes from the sale of power tools, which accounted for approximately 74% of its total sales in the fiscal year ending March 2023.

A significant contribution also comes from outdoor power equipment, accounting for around 15% of total sales, followed by accessories and other segments, which combined make up the remaining 11%.

Geographically, Makita earns substantial revenue from both domestic and international markets. In the fiscal year 2023, Japan accounted for about 22% of total revenue, while North America represented around 38%. Europe contributed approx 25%, with the remaining 15% from other regions, including Asia and South America.

In terms of operational profitability, Makita reported an operating income of 86.3 billion JPY for the fiscal year 2023, yielding an operating margin of approximately 10.2%. The company's net profit stood at 64.5 billion JPY, reflecting a net profit margin of 7.8%.

Makita continues to innovate and invest in research and development (R&D), allocating around 3.5% of its total revenue towards R&D activities. This focus on innovation helps maintain its competitive edge in a highly saturated market.

Moreover, the company's commitment to sustainability and eco-friendly products is evident, as it has introduced a range of battery-powered tools, which have become increasingly popular, especially in North America and Europe. The growing demand for cordless and battery-operated tools is expected to bolster future revenue streams.