Futaba Industrial Co., Ltd. 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 | 365,246 | 372,083 | (1.8) | -Even though sales were higher in North America, income as a whole fell year-on-year due to the debt crisis in Europe and the drop in demand in China for Japanese products as a result of the tense Japan-China relations. |
Operating income | (360) | 2,630 | - | |
Ordinary income | (1,136) | 335 | - | - |
Current net income | (4,040) | (4,521) | - | - |
New Company
<China>-Chongqing Futaba Automotive Parts Co., Ltd., a new production plant in Chongqing, was established in November 2012 as a wholly owned subsidiary of the Company. The new company is capitalized at 1 billion yen. The plant building has 8,200 sq. meters of space and is scheduled to launch commercial operations from Nov. 2013, manufacturing suspension parts that will be supplied mainly to Changan Suzuki. The Company decided to establish its new subsidiary in Chongqing in order to respond to the need for OEMs to procure parts locally in China.
Business Plan
Reducing the Workforce-The Company announced its plan to reduce the number of its nonpermanent employees from the current 900 to 550 by March 2013. The Company has fixed-term employees and temporary staff working at its seven plants in Aichi Prefecture. Anticipating a production cutback by automakers later this year after the termination of the eco-car incentive scheme, the Company is going to freeze hiring of nonpermanent employees during the second half of this year. It is set to downsize its workforce by not recruiting replacements for those retiring for contract expiration. (From an article in the Nikkan Jidosha Shimbun on August 1, 2012)
Revamping Production Structure
-The Company has set up a special committee to overhaul its production operations for improving profitability. Up until recently, the Company has worked on its production line renovation project in steps at the time of model changeovers. But the auto parts supplier is now poised to complete the whole revamping project by March 2014. The Company will replace its conventional, heavily equipped linear-shaped lines with more compact and lean U-shaped production lines. All its 150 production lines will be switched to the new layout. At the same time, the Company will reallocate product items among its facilities to enhance supply efficiency. (From an article in the Nikkan Jidosha Shimbun on Jun. 8, 2012)
Outlook for FY ending 2014
|
(in millions of JPY) |
FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Overall | |||
Sales | 377,000 | 365,246 | 3.2 |
Operating income | 2,600 | (360) | - |
Ordinary income | 1,400 | (1,136) | - |
Net income | 100 | (4,040) | - |
-The Company forecasts that results in Japan for fiscal year ending Mar. 31, 2014 will be 5.7% lower that they were in the FY ended Mar. 2013. Nevertheless, it predicts double-digit growth in North America, Europe, and Asia, which will improve its overall results by 3.2%.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
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 | 2,162 | 2,214 | 2,130 |
-Most of the Company's R&D activities are for automotive components.
R&D Activities
-The Company developed smaller and lighter exhaust heat recovery devices, but which actually achieve higher performance in hybrid vehicles, improving fuel efficiency. The Company aims to win more businesses for these devices.-The Company is also focusing on developing heat management systems so as to maximize energy efficiency.
-The Company continued to work on developing PM/NOx treatment devices for diesel vehicles to reduce exhaust emissions.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 16,667 | 13,382 | 15,188 |
-The Company invested in installing production equipment at the automotive parts business (mainly assembly and welding lines and dies and jigs) to streamline operations and reduce labor to improve its productivity, and also to deal with model changes.
-Breakdown of investment for FY ended Mar. 31, 2013: 11,379 million yen in Japan; 3,056 million yen in North America; 699 million yen in Europe, and 1,531 million yen in Asia.
Investments Outside Japan
<Thailand>-During FY ended Mar. 2013, the Company further invested in its Thai subsidiary YMP Press & Dies (Thailand) Co., Ltd., increasing its shareholding to 30%. This latest investment enabled the Company to expand the subsidiary's plant building and further enhance its capability to respond to the Thai market and increase its program business in terms of manufacturing and supplying mufflers, exhaust manifolds, and suspension parts. Its major customers include Japanese OEMs such as Suzuki and Toyota.
Planned Capital Investments (Automotive Parts) |
(As of Mar. 31, 2013) |
Name (Location) |
Purpose | Planned investment (in million JPY) |
Starting | Planned Completion |
Futaba Industrial Co., Ltd. | ||||
Head Office, Okazaki Plant (Aichi Pref., Japan) |
Production facility | 1,750 | Oct. 2011 | Mar. 2014 |
Midori Plant (Aichi Pref., Japan) |
Production facility | 670 | Oct. 2012 | Mar. 2014 |
Chiryu Plant (Aichi Pref., Japan) |
Production facility | 200 | Nov. 2012 | Mar. 2014 |
Kota Plant (Aichi Pref., Japan) |
Production facility | 1,090 | Oct. 2012 | Mar. 2014 |
R&D facility | 400 | Mar. 2013 | Mar. 2014 | |
Mutsumi Plant (Aichi Pref., Japan) |
Production facility | 800 | Nov. 2011 | Mar. 2014 |
Tahara Plant (Aichi Pref., Japan) |
Production facility | 1,140 | Oct. 2012 | Mar. 2014 |
Takahashi Plant (Aichi Pref., Japan) |
Production facility | 970 | Oct. 2012 | Mar. 2014 |
Dies and jigs etc. | 3,980 | Mar. 2011 | Mar. 2014 | |
Consolidated subsidiary | ||||
Futaba Kyusyu Corp., Imari Plant (Saga Pref., Japan) |
Production facility | 120 | Apr. 2013 | Mar. 2014 |
Futaba Kyusyu Corp., Miyata Plant (Fukuoka Pref., Japan) |
Production facility | 20 | Apr. 2013 | Mar. 2014 |
Futaba Kyusyu Corp., Nohgata Plant (Fukuoka Pref., Japan) |
Production facility | 350 | Apr. 2013 | Mar. 2014 |
Futaba Hiraizumi Corp. (Iwate Pref., Japan) |
Production facility | 130 | Apr. 2012 | Mar. 2014 |
Apics Co., Ltd. (Aichi Pref., Japan) |
Production facility | 240 | Apr. 2013 | Mar. 2014 |
FIC America Corp. (Illinois, USA) |
Production facility | 850 | Mar. 2013 | Mar. 2014 |
Futaba Indiana of America Corp. (Indiana, USA) |
Production facility | 680 | Mar. 2013 | Mar. 2014 |
Futaba Industrial Texas Corp. (Texas, USA) |
Production facility | 180 | Mar. 2013 | Mar. 2014 |
FIO Automotive Canada Corp. (Ontario, Canada) |
Production facility | 1,090 | Mar. 2013 | Mar. 2014 |
Futaba-Tenneco UK Ltd. (Lancashire, UK) |
Production facility | 60 | Dec. 2012 | Dec. 2013 |
Futaba Industrial U.K. Ltd. (Derbyshire, UK) |
Production facility | 610 | Dec. 2012 | Dec. 2013 |
Futaba Czech s.r.o. |
Production facility | 800 | Dec. 2012 | Dec. 2013 |
Shenzhen Futaba Metal Products Co., Ltd. (Guangdong, China) |
Production facility | 80 | Dec. 2012 | Dec. 2013 |
Tianjin Shuang Shye Mechanical Industrial Co., Ltd. (Tianjin, China) |
Production facility | 330 | Dec. 2012 | Dec. 2013 |
Tianjin Futaba Shye Chan Mechanical Industrial Co., Ltd. (Tianjin, China) |
Production facility | 1,230 | Dec. 2012 | Dec. 2013 |
Guangzhou Futaba Auto Parts Co., Ltd. (Guangzhou, China) |
Production facility | 290 | Dec. 2012 | Dec. 2013 |
Dongguan Futaba Metal Products Co., Ltd (Dongguan, China) |
Production facility | 260 | Jan. 2013 | Dec. 2013 |
Chngsha Futaba Auto Parts Co., Ltd. (Hunan, China) |
Production facility | 280 | Jan. 2013 | Dec. 2013 |
Chongqing Futaba Automotive Parts Co., Ltd. (Chongqing, China) |
Production facility | 340 | Jan. 2013 | Dec. 2013 |
FMI Automotive Components Ltd. (Haryana, India) |
Production facility | 510 | Mar. 2013 | Mar. 2014 |
PT. Futaba Industrial Indonesia (Bekasi, Indonesia) |
Production facility | 1,620 | Mar. 2013 | Mar. 2014 |