Fukoku Co., Ltd. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 64,300 | 56,906 | 13.0 | -Both sales and income improved year-on-year because Japanese OEM’s business performance significantly improved in North America and Asia. Also, until the beginning of autumn in Japan, demand continued to be lower year-on-year. However, after that, new model launches were made and last-minute demand to buy new cars grew before the consumption tax went up. |
Operating income | 3,047 | 2,664 | 14.4 | |
Ordinary income | 3,519 | 3,072 | 14.6 | |
Current net income | 2,457 | 1,898 | 29.5 | |
Functional products | ||||
Sales | 30,419 | 26,721 | 13.8 | -Won numerous supply agreements both in and outside Japan. |
Operating income | 3,410 | 3,792 | (10.1) | -Impacted by business operations migrating to mainly the ASEAN region. |
Anti-vibration products | ||||
Sales | 25,724 | 21,888 | 17.5 | -Won numerous supply agreements both in and outside Japan. |
Operating income | 2,482 | 1,372 | 80.9 | - |
Recent Development Outside Japan
<Czech>-The Company announced that it will establish a wholly-owned subsidiary to manufacture and sell industrial rubber and plastic products in the Czech Republic. Capitalized at CZK 60 million (approximately JPY 300 million), the new company, which will be tentatively called Fukoku Czech s.r.o., will be established in March 2014. Production is scheduled to begin during the fiscal year ending March 2016. (From a press release on December 24, 2013)
<Mexico>
-The Company announced that its consolidated subsidiary, Fukoku America Inc., will establish a subsidiary in Mexico. The new company, which will be tentatively called Fukoku Mexicana, S.A. de C.V, will be engaged in marketing activities for industrial rubber and plastic products. Capitalized at MXN 5.2 million (approximately USD 400,000), the subsidiary is scheduled to be set up in January 2014. (From a press release on December 24, 2013)
Supply Agreements
-The following are major supply agreements in Fiscal Year ended Mar. 31, 2014.Functional products
Product | Customers | Status |
Boots for electronic parking systems | Japanese parts supplier | Won supply agreement |
Pressure relief valve for turbo-cars | Japanese parts supplier | Commercial production started |
Anti-vibration rubber for water pumps | Japanese parts supplier | Commercial production started |
Rubber for regulator valves compliant with exhaust gas emissions regulations | Japanese parts supplier | Commercial production started |
Check valve for turbo-cars | Japanese parts supplier | Commercial production started |
Anti-vibration products
Product | Customer | Status |
Gasoline engine damper pully | Japanese OEM | Won supply agreement |
Viscosity damper | Japanese OEM transplant in China | Commercial production started |
Gasoline engine solid pully | Japanese OEM transplant in Indonesia | Won supply agreement |
Diesel engine damper pully for ASEAN market | Japanese OEM transplant in Thailand | Won supply agreement |
Center bearing | Japanese OEM transplant in Indonesia | Won supply agreement |
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, 2014 |
(in millions of JPY) |
FY ending Mar. 31, 2015 (Forecast) |
FY ended Mar. 31, 2014 (Actual Results) |
Rate of Change (%) | |
Sales | 66,000 | 56,906 | 2.6 |
Operating income | 3,400 | 3,047 | 11.6 |
Ordinary income | 3,400 | 3,519 | (3.4) |
Net income | 2,000 | 2,457 | (18.6) |
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall | 1,340 | 1,271 | 1,191 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall | 4,333 | 5,609 | 3,863 |
Functional products | 2,597 | 3,369 | 2,010 |
Anti-vibration products | 1,065 | 1,712 | 1,450 |
-Invested in facilities and plant buildings mainly at Fukoku Korea, Siam Fukoku, and Fukoku India.
-Company spent 5,609 million yen in capital investments Group-wide in order to enhance its competitive advantages to win more business, investing mainly in construction projects at Fukoku Korea, Siam Fukoku, and Fukoku India.
Planned Capital Investments |
(As of Mar. 31, 2013) |
Company Office |
Purpose | Estimated amount of investment (in millions JPY) | From | To |
Siam Fukoku Co., Ltd. | Installing facilities for manufacturing industrial rubber | 366 | jan. 2014 |
Nov. 2014 |