Kikuchi Co., Ltd. Business report in FY2008
Business Highlights
Financial Overview | (in millions of JPY) |
FY2008 | FY2007 | Rate of Change (%) |
Factors | |
Sales | 65,922 | 61,911 | 6.5 | -Sales of body parts remained strong in China and Brazil. Sales of dies and tools also contributed to the sales growth. |
Operating Income | 4,260 | 5,524 | (22.9) | -In Japan and the U.S., the Company's cost reduction efforts could not catch up with its sudden drop of production. |
Ordinary Profit | 3,473 | 5,343 | (35.0) | |
Net Income | 1,806 | 2,991 | (39.6) |
Recent Developments in Japan
-New model launches (EU Accord WGN, Odyssey, Freed, Exiga, Impreza)
-Tochigi Plant's 1500t Transfer and 500t Planking Press now in full operation.
-290 million yen investment in overseas subsidiary Kikuchi do Brasil Ltda.
Recent Developments Overseas
<North America>
Austin Tri-Hawk Automotive Inc.
-Land acquisition (30 acres, 121,405 square meters)
-Building expansion (1800 square meters to prepare for new model launches and improve the production system)
J Group
-Honda Acura TL launch (Jefferson Industries Corporation)
-Honda Pilot launch (Jefferson Southern Corporation)
<Latin America>
Kikuchi do Brasil Ltda.
-Land acquisition (43,684 square meters, 1 million R$)
-Building expansion (Ensuring capacity to build 150,000 units)
<China>
Auto Parts Alliance (China) Ltd.
-Start of production of new models (Nissan Qashqai, Toyota Vitz)
-Start of operation of 3000t transfer press
Wuhan Auto Parts Alliance Co., Ltd.
-Profit and sales increased due to increased production (up 37,000 units).
-Start of building expansion (to prepare for new model launch)
Conghua K&S Auto Parts Co., Ltd.
-Profit and sales increased due to increased production (up 4.5 million units).
<India>
Global Auto Parts Alliance India Private Ltd.
-Start of welding operation in November and pressing in March
Financial Forecast for FY2009
Sales by Geographic Area | (in millions of JPY) |
FY2008 | FY2009 | |
Overall | 65,922 | 47,800 |
Japan | 35,479 | 21,600 |
North America | 6,211 | 3,811 |
South America | 7,662 | 5,682 |
Asia | 20,487 | 17,793 |
R&D
R&D Expenditure | (in millions of JPY) |
FY 2008 | FY 2007 | FY 2006 | |
Overall | 350 | 416 | 376 |
Number of R&D staff | 28 | 27 | 24 |
R&D Activities
-Major R&D activities and achievements FY2008
(1)Study to expand application to mash seam welding body parts
(2)Study to expand application to body parts made of high tensile steel materials.
(3)Study to expand injection simulation technology.
(4)Study to reduce weight and increase strength of CVT parts.
(5)Study to use information technology for making metal dies.
(6)Study to apply technology of high-frequency hardening to steel plate materials.
Technology Contract Offered by the Company (As of Mar. 2009)
Partner | Country | Details | Period |
Jefferson Industries Corporation | USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2003.10.01~2006.09.30 automatic extension every year thereafter |
Jefferson Elora Corporation | Canada | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1997.03.31~2002.03.30 automatic extension every 5 years thereafter |
Jefferson Southern Corporation | USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2001.05.31~2006.05.30 automatic extension every year thereafter |
Austin Tri-Hawk Automotive Inc. |
USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1998.01.25~2001.01.24 automatic extension every year thereafter |
Kikuchi Do Brasil Ltda |
Brazil | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1997.05.30~2002.05.29 automatic extension every year thereafter |
Auto Parts Alliance (China) Ltd. |
China | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2006.10.26~2011.10.25 |
Wuhan Auto Parts Alliance Co., Ltd. |
China | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2005.07.01~2010.06.30 |
Investment Activities
Capital Investment | (in millions of JPY) |
FY2008 | FY2007 | FY2006 | |
Overall | 11,684 | 15,656 | 11,296 |
-Investment is made mainly in production line expansion and preparation for model changes.
Planned Capital Investments (As of Mar. 2009)
Plant | City | Equipment to be installed | Estimated amount of investment (in millions of yen |
From | To |
Hamura Plant | Hamura City, Tokyo | Equipment for manufacturing auto parts (dies, jigs and tools) | 2,200 | - | - |
New plant | Fukaya City, Saitama Pref. |
Buildings | 5,100 | Jun. 2008 | Jun. 2010 |
Equipment for manufacturing auto parts (stamping and welding equipment) | 3,000 | Apr. 2009 | Mar. 2010 | ||
Kikuchi Do Brasil Ltda | Sao Paulo, Brazil | Equipment for manufacturing auto parts (stamping and welding equipment) | 679 | Jan. 2009 | Dec. 2010 |
Auto Parts Alliance (China) Ltd. | Guangzhou, Guangdong Province, China. | Equipment for manufacturing auto parts (dies, jigs and tools) | 1,264 | Jan. 2009 | Aug. 2009 |