Ichikoh Industries, Ltd. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 93,397 | 102,000 | (8.4) | -Sales fell year-on-year mainly because of a decrease in automotive production in Japan. |
Operating income | 599 | (1,668) | - | -The Company closed two plants in Japan, integrating its production sites; sold some assets that the Company owned; cut expenditures; and took all other possible measure to rationalize its operations. |
Ordinary income | 2,002 | (1,463) | - | |
Net income | (839) | (17,086) | - | - |
Automotive components | ||||
Sales | 91,678 | 99,602 | (8.0) | - |
Business Partnership
-The Company announced that it has reached an agreement on the capital alliance with FIEM Industries Ltd., New Delhi, India, which the Company has provided with technical assistance. In addition to the current technical support, consigned production of the Company's products will start. The Company will acquire 5% of FIEM's issued stock. FIEM is a lamp and mirror manufacturer established in 1970, supplying to local motor cycle manufacturers including Suzuki Motor and Yamaha Motor well as to automakers such as Tata Motors, Hyundai Motor and Fiat Automobiles, Italy. (From an article in the Nikkan Jidosha Shimbun on May 28, 2009)Business Restructuring
-The Company is planning to start production in Thailand. Products to be made are small lamps used in the car interior. Production will be conducted on a consignment basis at Ampas Industries Co., Ltd. (Bangpoo Industrial Estate, Samutprakarn) a local manufacturer to which Ichikoh has been transferring its mirror making technology. By fall, Ichikoh will provide some manufacturing equipment on lease and send its production staff to this facility to help its operations. Although Ichikoh has a significant share in the small lamp market in Japan, profit from the business is small as is the case with its mirror division. The company is now set to shift production overseas, aiming to nurture the small lamp business as a profit-earning sector. In the long-term perspective, Ichikoh is eying the possibility of establishing a production subsidiary in Thailand to expand the product items to headlamps and rear combination lamps, its main products. (From an article in the Nikkan Jidosha Shimbun on July 1, 2009)-The Company announced that it has decided to dissolve Kenkoh Industries Co., Ltd., its joint-venture company in Taiwan. Kenkoh, which was established between the Company and a Taiwan-based manufacturer in 1988, has been manufacturing and selling mirrors and other vehicle components for automakers in Taiwan. The Group has begun a procedure to liquidate the operations by the middle of Nov. 2010 so as to streamline its overseas business. (From an article in the Nikkan Jidosha Shimbun on Jan. 23, 2010)
-The Company will sell all the stocks it owns in Fuji Die-casting Co., Ltd. based in Misato, Saitama Pref. to Nanshin Chemical Industries Co., Ltd. based in Tama, Kawasaki city, the Company announced. Fuji Die-casting produces aluminum and zinc die-cast components for automotive lamps, mirrors and lamps. The Company has invested in Nanshin Chemical since 1971. (From an article in the Nikkan Jidosha Shimbun on Mar. 10, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Business Plan
-The Company plans to double sales of small lamps for the vehicle interior and exterior to 16 billion yen by the fiscal year ending Mar. 2014. The small lamps, which have been manufactured mainly by its subsidiaries in Japan, will also be produced in Thailand and India so that the global supply system will be established. A small lamp project office will soon be set up within the Company to decide details of production sharing of lamps and other products as well as cost planning. With this trilateral operation, the Company aims to raise the price competitiveness of its small lamps and to make the product the third pillar of its line-up after headlights/beacon lights and mirrors. (From an article in the Nikkan Jidosha Shimbun on July 9, 2009)R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 4,600 | 5,700 | 5,900 |
R&D Structure
Department | Functions |
R&D | Development of advanced technologies |
Development & Design Office | Development of technologies that enable new products and value to be created |
Production Engineering | Development of products that reach commercialization |
R&D Facilities
-The Company announced that it will set up a new technical center in Isehara City, Kanagawa Pref. in order to consolidate all its development operations, which are now handled separately both at its headquarters in Shinagawa, Tokyo and its Isehara plant. The facility is planned to be completed by Aug. 2010. It will be established within the Company's Isehara plant, utilizing the lot where a gymnasium and tennis courts were situated. The Company is investing 1.7 billion yen in the new four-story facility, which will have a total floor area of 11,695 square meters. The technical center will function as a development and administration base by integrating engineering operations for the Company's entire lineup including automotive lamps and mirrors as well as administrative operations. The Company will work on improving its development infrastructure so as to engineer various cutting-edge technologies. (From an article in the Nikkan Jidosha Shimbun on Sep. 29, 2009)R&D Activities
Lighting equipment and signals
1) Highly functional automotive lighting equipment suited to meet car designs.
2) Research on situation-sensitive light distribution properties and evaluation systems.
Ichikoh light distribution simulation system
3) Development of high-definition automotive signals.
4) Development of new light sources.
View-related Devices
1) Development of nescience prevention mirror system.
2) Development of view-related systems, utilizing functional thin membranes, electronics, etc.
3) Development of car control systems and control devices.
4) Development of vehicle perimeter sensing and security devices.
Opto-mechatronics
1) Development of display devices using new light sources such as LED.
2) Development of multiple transmission systems for motor vehicles
3) Development of mechatronics devices utilizing membrane/precision molding technologies.
Major Technical Assistance Agreements
(As of Mar. 31, 2010)
Company Name | Country | Technology | Coverage | Contract Period | |
From | To | ||||
Anpas Industries | Thailand | Manufacturing technologies for automotive lamps and rear view mirrors | Licensing of patents and expertise | Apr. 15, 1997 | Apr. 14, 2010 (yearly automatic renewal from then on) |
Tokyo Electrica de Mexico | Mexico | Manufacturing technologies for automotive lamps and rear view mirrors | Licensing of patents and expertise | Nov. 21, 1997 | Until sales of products are ended |
FIEM Industries | India | Manufacturing technologies for rear view mirrors | Licensing of expertise | Nov. 11, 2005 | Nov. 10, 2010 (yearly automatic renewal from then on) |
Valeo Sylvania L.L.C. | U.S.A. | Manufacturing technologies for automotive lamps | Licensing of patents and expertise | Feb. 18, 2008 | Until sales of products are ended |
Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd. | China | Manufacturing technologies for automotive lamps | Licensing of patents and expertise | Mar. 24, 2001 | 5 years from Mar. 24, 2006 (renewal every three years) |
Investment Activities
Capital Investment |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 1,042 | 3,908 | 2,144 |
-The Company invested in the facilities and automation equipment at its automotive parts production and sales division in order to produce new and upgraded products.
Main Investments
Plant | Location | Segment (business division) | Estimated amount of investment (million yen) |
Isehara Plant | Kanagawa Pref., Japan |
Manufacturing and sale of automotive parts | 538 |
Mirror Plant | Gunma Pref., Japan |
Manufacturing and sale of automotive parts | 103 |
Fujioka Plant | Gunma Pref., Japan |
Manufacturing and sale of automotive parts | 43 |
New Equipment Installment
(As of Mar. 31, 2010)
Plant | Equipment to be installed | Estimated amount of investment (million yen) | Project Period | Percentage of capacity increase (%) | |
From | To | ||||
Isehara Plant (Kanagawa Pref., Japan) |
Facilities for manufacturing automotive parts | 329 | Apr. 2010 | May, 2011 | minor |
Mirror Plant (Gunma Pref., Japan) |
Facilities for manufacturing automotive parts | 166 | Apr. 2010 | May, 2011 | minor |
Isehara Plant (Kanagawa Pref., Japan) |
New technical center building | 1,778 | Mar. 2009 | Oct. 2010 | - |