Fukoku Co., Ltd. Business Report FY2011
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 54,469 | 51,618 | 5.5 | -The Great East Japan Earthquake and the nuclear-power-plant accidents tremendously impacted the Company's production and sales. Nevertheless, production later recovered, with the Company suddenly receiving a huge volume of new orders and responding to them by keeping in step with the operations of its major customers. The major flooding in Thailand also caused a reduction in new product orders. In the end, the revival in production and sales in Japan relieved the negative circumstances surrounding the Company, and the deteriorating market situation finally bottomed out. |
Operating income | 3,173 | 3,803 | (16.6) | - |
Ordinary income | 3,267 | 3,801 | (14.0) | - |
Current net income | 2,323 | 1,159 | 100.4 | - |
Functional products | ||||
Sales | 25,624 | 24,799 | 3.3 | -After the earthquake in Japan, the Company experienced a recovery in orders. |
Operating income | 4,590 | 4,154 | 10.5 | - |
Anti-vibration products | ||||
Sales | 20,974 | 19,768 | 6.1 | -Operating revenue increased as a result of a recovery in production in Japan and as a result of increased orders for new business outside Japan. |
Operating income | 1,202 | 2,108 | (43.0) | - |
Supply Agreements
-The following are major supply agreements in Fiscal Year ended Mar. 31, 2012.Functional products
Product | Customers | Status |
Valve for exhaust gas emission control | Japanese parts supplier | Commercial production started |
Anti-vibration rubber for electric pumps used in hybrid vehicles | Japanese parts supplier | Commercial production started |
Bush for hydraulic brakes used in hybrid vehicles | Japanese parts supplier | Commercial production started |
Suspension seal | Japanese parts supplier | Commercial production started |
Parts used in automotive cooling system | Customer in China | Commercial production started |
CV boot | Japanese OEM transplant in Malaysia | Commercial production confirmed |
Anti-vibration products
Product | Customer | Status |
Damper pulley for high-performance diesel engines | Japanese OEM | Production order placed |
Damper pulley for ethanol engines | Japanese OEM | Production order placed |
Crank damper for hybrid vehicles | Japanese OEM | Production order placed |
Coupling for new-type power windows | Japanese parts supplier | Development completed |
Damper pulley | Indian OEM | Firm order placed |
Torque rod | Japanese OEM transplant in Thailand | Firm order placed |
Cap mount for SUVs | Japanese OEM transplant in Indonesia | Commercial production started |
Torque rod | Japanese OEM transplant in Indonesia | Commercial production started |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Outlook for FY ending Mar. 31, 2013 |
(in millions of JPY) |
FY ending Mar. 31, 2013 (Forecast) |
FY ending Mar. 31, 2012 (Actual Result) |
Rate of Change (%) | |
Sales | 58,000 | 54,469 | 6.5 |
Operating income | 3,500 | 3,173 | 10.3 |
Ordinary income | 3,500 | 3,267 | 7.1 |
Net income | 2,100 | 2,323 | (9.6) |
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 1,191 | 1,217 | 1,128 |
Technology Licensing-in Agreement |
(As of Mar. 31, 2012) |
Partner | Contract | Validity |
C.F. Gomma S.p.A (Italy) |
Design and manufacturing technology for air springs | From July 2, 2003 to July 1, 2013 |
Technology Licensing-out Agreement |
(As of Mar. 31, 2012) |
Partner | Contract | Validity |
C.F. Gomma S.p.A. (Italy) | Manufacturing technology of CVJ boots | From December 1, 2002 to November 30, 2012 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 3,863 | 3,718 | 1,376 |
Functional products | 2,010 | 1,619 | 1,263 |
Anti-vibration products | 1,450 | 1,853 |
-The Group spent a total of 3,863 million yen in production facilities and equipment in order to better respond to the competition for winning new orders. It specifically invested in facilities and equipment mainly at Fukoku Korea, Fukoku India, and Fukoku Vietnam, as well as in production facility at Gunma No.2 Plant manufacturing wiper-blade rubber.
Development Outside Japan
<Thailand>-The Company said a construction site of a new wiper parts plant in Thailand, which is planned by its consolidated subsidiary Siam Fukoku Co., Ltd., will be changed. A previously planned site with a land area of 64,000 square meters in Khon Kaen Province will be altered to a site with a land area of 66,508 square meters in Nakhon Ratchasima Province. A new location is expected to bring about such advantages as better collaboration with the existing plant and reduction in logistics costs. The new plant is scheduled to go into operation after July 2012. (From a press release on September 26, 2011)
Planned Capital Investments |
(As of Mar. 31, 2012) |
Company Office |
Purpose | Estimated amount of investment (in millions JPY) | From | To |
Siam Fukoku Co., Ltd. | Acquiring a piece of land, constructing a new plant and and installing facilities for manufacturing industrial rubber | 2,062 | Aug. 2011 |
Apr. 2012 |
Fukoku India Private Limited | Constructing a new plant and installing facilities for manufacturing industrial rubber | 639 | Apr. 2011 |
Sep. 2012 |
Fukoku Korea Co., Ltd. | Constructing a new plant and installing facilities for manufacturing industrial rubber | 1,090 | Apr. 2012 |
Dec. 2012 |