Suncall Corporation Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 31,360 | 30,658 | 2.3 | - |
Operating income | 2,137 | 1,725 | 23.9 | - |
Ordinary income | 2,741 | 1,864 | 47.0 | - |
Net income | 1,867 | 968 | 92.9 | - |
Functional Precision Materials | ||||
Sales | 3,975 | 3,918 | 1.5 | - |
Functional Precision Components | ||||
Sales | 18,016 | 16,814 | 7.1 | -Even though sales were lower after the eco-car sales incentives ended, sales for the year as a whole were higher due to tremendous increases in sales in the USA and China for products used for engines. |
Outlook for FY ending Mar 31, 2014 |
(in millions of JPY) |
FY ending Mar 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Sales | 32,000 | 31,360 | 2.0 |
Operating income | 2,400 | 2,137 | 12.3 |
Ordinary income | 2,400 | 2,741 | (12.4) |
Net income | 1,700 | 1,867 | (8.9) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Mid-term Management Plan
-The Company established its mid-term management plan called Plan 37500. Under the Plan, the Company aims to increase its global share of automotive products, which will be based on precision metal plasticity processing, its core technology; digital products; and optical communications products. It will work to achieve operating revenue of 37.5 billion yen in fiscal year 2014. Its strategies for achieving these objectives are outlined below:1) Expand Sales
-Along with developing markets for the products that it developments such as reactor coils for hybrid vehicles, the Company is developing new uses for its products that already have a high share of the global market.
2) Strengthen global production operations-In order to maintain its predominance while competing with manufacturers in developing countries, forecasting that demand in Asia and the U.S.A. will grow, and responding to currency risks and other risks, the Company will implement the following initiatives.
- Strengthen its three-region, global production structure based on operations in Japan, the U.S.A, and Asia, by continually investing.
- Launch production in China based on its joint-venture company manufacturing wire for valve springs, so as to respond to growing demand.
-Speed up development of brand-new products such as processed terminal posts/pins and laminated electromagnetic steel sheet coils for hybrid cars, ensuring this by enhancing its production functions.
4) Reduce costs
-Lower costs by reducing production processes, developing materials that can be handled by compact production lines, and upgrade production lines that raise productivity.
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 786 | 703 | 523 |
R&D Activities
1) R&D Group (Japan)Development of a terminal bus bar for PHVs
-The Company developed a process that freely forms flat wires and thus greatly reduces mechanical loss when, compared to traditional stamping processes. Furthermore, the Company, by developing insulating coating technology, was able to develop a terminal bus bar that no longer needs a plastic insulating cover. Launched commercial production from January 2013.
2) Functional Precision Materials (Japan)
Development of precision-rolled materials for high-torque spiral springs
-Aiming for a high torque level in its spiral springs used in automotive seatbelts, the Company worked on raising the strength of precision-rolled materials that form the core raw materials. In this context, the Company succeeded in developing rolled materials combined with processability of main springs that maintain their strength, by optimizing the material components and production conditions.
3) Functional Precision Components (Japan)
Development of mainsprings for new, variable valve train systems
-The Company developed mainsprings that use irregularly shaped cross section materials that achieve the same level of quality as valve springs, for new, variable valve train systems in next-generation engines. The Company has won a firm order from a non-Japanese OEM, planning to launch production from fiscal year 2013.
Development of highly retractable springs for seatbelt retractors
-The Company succeeded in developing a retractor that has 10% more retracting power than existing retractors by developing precision-rolled materials for high-torque springs made of precision functional materials, and through combining irregular-shape rolling technology and high deformation of springs. As a result, the Company was able to reduce the product weight by making the spring material thinner and reducing the length, which lead to a significant savings in costs. Planning to launch commercial production in FY2013, the Company is now actively conducting validation activities at customer locations.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
-Functional Precision Materials (Japan) | 125 | 340 | 221 |
Functional Precision Materials Total | 125 | 340 | 221 |
-Functional Precision Components (Japan) | 501 | 586 | 715 |
-Functional Precision Components (USA) | 355 | 88 | 26 |
-Functional Precision Components (Asia) | 75 | 52 | 82 |
Functional Precision Components Total | 931 | 726 | 823 |
Other | 589 | 580 | 1,211 |
Grand Total | 1,767 | 1,646 | 2,255 |
-The Company's main investment activities were for increasing its production volumes, improving productivity, reducing costs, raising product quality, and enhancing the environmental responsiveness of its products.
Functional Precision Materials
-The Company invested primarily in improvement of productivity of valve spring materials, precise deformed materials and quality.
Functional Precision Components
-Capital investments were mainly for reducing costs of automotive parts, improving productivity, and helping the environment.
Planned Capital Investments |
(As of Mar. 31, 2013) |
Company or Office Name | Facilities | Expected Investment (in millions of JPY) |
Project period | |
From | To | |||
The Company (Kyoto, Japan) |
Manufacturing facility (Functional Precision Materials) |
520 | Apr. 2013 |
Mar. 2014 |
The Company (Kyoto, Japan) |
Manufacturing facility (Functional Precision Components) |
643 | Apr. 2013 |
Mar. 2014 |
Suncall America Inc. (Indiana, USA) |
Manufacturing facility (Functional Precision Components) |
228 | Jan. 2013 |
Dec. 2013 |
Suncall High Precision (Thailand) Ltd. (Chonburi, Thailand) |
Manufacturing facility (Functional Precision Components) |
162 | Jan. 2013 |
Dec. 2013 |
Suncall (Guangzhou) Co., Ltd (Guangzhou, China) |
Manufacturing facility (Functional Precision Components) |
165 | Jan. 2013 |
Dec. 2013 |