Nishikawa Rubber Co., Ltd. Business Report FY2012
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 |
Rate of |
Factor | |
Overall | ||||
Sales | 60,384 | 52,019 | 16.1 | - |
Operating income | 3,026 | 4,775 | (36.6) | -Even though the Company continued its cost-cutting initiatives to improve its performance, operating income was lower year-on-year due to the production slowdown caused by the Great East Japan Earthquake, and due to the rise in the cost of materials. |
Ordinary income | 3,140 | 5,453 | (42.4) | - |
Net income | 1,655 | 3,828 | (56.8) | - |
Automotive parts division | ||||
Sales | 55,799 | 47,811 | 16.7 | 1) |
Operating income | 2,482 | 4,281 | (42.0) |
Factors
1) Automotive parts division
-Even though auto production in Japan was negatively impacted by the Great East Japan Earthquake and the flooding in Thailand, performance for the year as a whole ended up to be slightly higher year-on-year. This was the result of several positive factors such as the recovery in production in the second half of the year by OEMs due to a rise in demand because of the eco-car sales-incentive programs and the tax reductions on eco-cars. Also, the financial results outside Japan were also favorable year-on-year due to the increase in auto production in the U.S.A, which resulted in greater operating revenue because of higher sales.
-Operating profit, unfortunately, ended up being lower year-on-year due to the production slowdown caused by the Great East Japan Earthquake, and due to the rise in the cost of materials.
New Company
-The Company announced on Nov. 11 that Nishikawa of America, Inc. (NOA), its 100% subsidiary in the U.S., will establish a subsidiary in Guanajuato, Mexico, Nishikawa Cooper Mexico S.A. de C.V. It will manufacture, process and sell automotive rubber parts. The Company aims to establish a local production base in South America in order to serve customers overseas and expand sales. While the capital amount is yet to be decided, NOA will hold 100% at the time of establishment and Cooper Standard Automotive Mexico S.A. (CSA) plans to acquire 20% after mass production begins in 2013. Meanwhile, in India, Nishikawa Rubber will raise its shares in its equity method affiliate, Anand Nishikawa Co., Ltd., to 50% from current 20% by the end of this month. The objective is to enhance its strategy for the automotive market in India. The name of the subsidiary will be changed to ALP Nishikawa Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on November 12, 2011)
Outlook for FY ending Mar. 31, 2013 |
(in millions JPY) |
FY ending Mar. 31, 2013 (Forecast) |
FY ended Mar. 31, 2012 (Actual Result) |
Rate of Change (%) |
|
Sales | 66,000 | 60,384 | 9.3 |
Operating income | 4,000 | 3,026 | 32.2 |
Ordinary income | 4,150 | 3,140 | 32.2 |
Net income | 2,200 | 1,655 | 32.9 |
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 | 214 | 230 | - |
Automotive parts | 140 | 149 | 162 |
R&D Activities
1) Development of technology to make more lightweight products-In responding to the need for products that are even more lightweight, the Company has already developed lighter weight and thinner, glass run channels, door inner seals, and trunk seals, making them from plastics and foam, based on its technological expertise in the field. These products are known to contribute to weight reduction. Based on this, the Company is now increasing production of these products that still meet the same standards in terms of weight and specs compared to existing products, delivering more of them for installation on new vehicle models.
-The Company is continuing its R&D activities to further reduce product weight based on the concepts of "less", "hybrid", and "modular".
2) Development of technology to reduce noise
-The Company is continuing to research foaming technology, looking into deep plowing, different types of materials, and compounds in order to further improve noise reduction of door-hole seals and of other areas not related to doors. In this regard, the Company is aiming to launch sales of new products in line with this research.
-In working to improve the cost performance of door-seal materials, the Company is researching the optimum combination of materials and parts that do not lower noise-reduction performance.
3) Development of technology to comply with environmental needs
-The Company is continuing to develop (1) energy-efficient production lines that eliminate material loss when making seals, (2) next-generation seals for eco-friendly cars such as hybrids, and (3) new materials that make use of plant-based resources.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 3,617 | 2,324 | 2,091 |
Automotive parts | 3,483 | - | 2,004 |
Automotive parts
-The Company invested in facilities and equipment to produce new-type seals. It is also investing to rationalize its operations under the aim of lowering costs.
Planned Capital Investments |
(As of Mar. 31, 2012) |
Plant | Equipment to be introduced | Estimated amount of investment (in million JPY) |
Project Period | |
From | To | |||
The Company | ||||
Shiraki Plant (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals -Components for general industry |
335 | Dec. 2011 |
Mar. 2013 |
Asa Plant (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals -Components for general industry |
898 | Dec. 2011 |
Mar. 2013 |
Yoshida Plant (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals and interior/exterior components -Manufacturing equipment for exterior walls for housing |
670 | Dec. 2011 |
Mar. 2013 |
Mihara Plant (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive door seals. -Manufacturing equipment for exterior walls for housing |
750 | Nov. 2011 |
Mar. 2013 |
Others | -Buildings and R&D equipment and others | 505 | Jan. 2012 |
Mar. 2013 |
Domestic subsidiaries | ||||
Nishikawa Bussan (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals -Manufacturing dies |
156 | - | Mar. 2013 |
Seiwa Kougyo Co., Ltd. (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals -Components for general industry |
20 | Mar. 2012 |
Mar. 2013 |
Nishikawa Big Ocean Co., Ltd. (Hiroshima Pref., Japan) |
-Manufacturing equipment for automotive seals | 153 | Mar. 2012 |
Mar. 2013 |
Nishikawa Rubber Yamaguchi (Yamaguchi Pref., Japan) |
-Manufacturing equipment for automotive seals | 223 | Mar. 2012 |
Mar. 2013 |
Overseas subsidiaries | ||||
Nishikawa Cooper LLC. (Delaware, USA) |
-Manufacturing equipment for automotive seals | 971 | Dec. 2011 |
Dec. 2012 |
Nishikawa Tachaplalert Rubber Co., Ltd. (Nakhonratchasima, Thailand) |
-Manufacturing equipment for automotive seals | 1,100 | Dec. 2011 |
Dec. 2012 |
Shanghai Nishikawa Sealing System Co., Ltd. (Shanghai, China) |
-Manufacturing equipment for automotive seals | 395 | Dec. 2011 |
Dec. 2012 |
Guangzhou Nishikawa Sealing System Co., Ltd. (Guangzhou, China) |
-Manufacturing equipment for automotive seals | 224 | Dec. 2011 |
Dec. 2012 |
Nishikawa Cooper Mexico S.A. de C.V. (Guanajuato, Mexico) |
-Buildings and manufacturing equipment for automotive seals | 1,339 | Dec. 2011 |
Jun. 2013 |