Pacific Industrial Co., Ltd. Business Report FY ended Mar. 2019
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 145,030 | 117,758 | 23.2 | -Sales increased, thanks to winning new customers and the addition of sales by new consolidated subsidiaries acquired through buying their stock shares. |
| Operating income | 10,307 | 8,063 | 27.8 | -Income rose because of increased profits, cost improvements, and the additions of consolidated subsidiaries. |
| Ordinary income | 11,767 | 9,485 | 24.1 | |
| Net income attributable to owners of the parent | 8,730 | 7,393 | 18.1 | |
Acquisition
-On August 31, 2018, the Company acquired all of the shares in August France Holding Company SAS and its subsidiary Schrader SAS of France. In addition, the Company's wholly owned subsidiary in the USA, Pacific Industries USA Inc. acquired 100% of the shares in Schrader-Bridgeport International, Inc. of the USA.
Medium-term management plan OCEAN-20
| Target figures for Ocean-20 | FY ending Mar. 31, 2021 (Target) |
| Consolidated sales (billion JPY) | 155.0 |
| -Sales breakdown by products (billion JPY) | Stamping/resin product 96.5 Valve/TPMS 58.0 |
| Consolidated ordinary income | 8% range |
| ROA | 7% range |
-Pacific Industrial Co., Ltd. (Pacific Industrial) announced that it has upwardly revised its targets set in its OCEAN-20 mid-term business plan (for the period ending in March 2021). In August, Pacific Industrial acquired three Schrader group valve businesses (Schrader-Bridgeport International, Inc. in the U.S., as well as August France Holding Company SAS and Schrader SAS in France) and made them wholly-owned subsidiaries. As a result, Pacific Industrial increased its consolidated sales target for the fiscal year that ends in March 2021 (FY 2020) from JPY 140 billion to JPY 155 billion. Its consolidated operating profit ratio and operating profit targets remain unchanged (on the order of 8% and 7%, respectively). The current mid-term business plan was established in FY 2017. Pacific Industrial had consolidated sales of JP 103.6 billion in FY 2016. (From an article in the Nikkan Jidosha Shimbun on November 5, 2018)
-The Company is initiating the following in order to achieve the objectives outlined in its mid-term management plan:
- Reduce weight of stamped frame parts in order to reduce vehicle weight
- Improve the noise and vibration performance of urethane foam products by reducing noise and vibration
- Improve materials recyclability by reducing weight through developing plastic film that can replace metal coatings
- Increase strength and reduce weight through sheet-metal forging that combines sheet-metal forming with cold forging
- Develop lighter weight and more die-cast product items at the Korean production plant
- Develop new products for the TPMS field and increase production capacity at the Chinese production plant
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenses |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| -Stamping/resin products business | 249 | 194 | 203 |
| -Valve products business | 852 | 612 | 562 |
| -Others | 9 | 4 | - |
| -In Common | 366 | 301 | 232 |
| Overall | 1,478 | 1,112 | 1,004 |
R&D Activities
| Business segment |
Departments | Major activities |
| Stamping products | -R&D department of the Technology planning center; -Stamping technology and Resin technology Departments of Stamping/resin business unit |
-Increase the number of items that can be formed with 1180MPa-class high-tensile metal that reduces vehicle weight and costs, and deliver them to new Toyota models. -Develop engine-cover design that improves noise and vibration performance by using urethane and develop technology in the field of automotive decorating and embellishing |
| Valve products | -Technology and Production technology departments of the valve and TPMS business unit | -Develop TPMS communications devices that are smaller, lighter in weight, and more energy efficient. -Develop relief valves for car air-conditioners, which can respond to high-pressure refrigerants and which are capable of preventing global warming and destruction to the ozone layer. -Develop transmission parts that can be precision formed and which are strong while light weight. |
| Common | -Technology planning center | -R&D on metal-plasticity-processing technology and joining technology -R&D on multi-compound materials -Develop products for wireless-communication applications -Make products and methods that are environmentally friendly by reducing the use of environmentally hazardous materials and reducing the number materials used. |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Stamping/resin products | 18,801 | 15,343 | 12,294 |
| -In Japan | 9,852 | 7,812 | 6,700 |
| -Outside Japan | 8,949 | 7,531 | 5,593 |
| Valve products | 3,236 | 5,516 | 4,391 |
| -In Japan | 1,458 | 3,529 | 2,347 |
| -Outside Japan | 1,777 | 1,987 | 2,043 |
| Others | 10 | 12 | 17 |
| Elimination | (77) | (40) | (69) |
| Total | 21,970 | 20,832 | 16,633 |
<Stamping/resin products>
-Japan: Investing in stamping facilities and equipment at the Nishi Ogaki Plant, responding to producing new products such as dies for new-vehicle models, and increasing production volume.
-Outside Japan: Investing to expand the production plants in Ohio and Tennessee in the USA, and install stamping facilities and equipment.
<Valves>
-Japan: Investing in facilities and equipment for new TPMS products and to increase production volume.
-Outside Japan: Investing to produce new TPMS products and increase production in Ohio, USA and Changshu, China.
Planned Capital Investments |
(As of Mar. 31, 2019) |
| Facility (Location) |
Business segment | Purpose | Planned total investment (in million JPY) |
Start | Planned completion | Production capacity growth after completion |
| The Company Nishi Ogaki Plant (Gifu Pref., Japan) |
Stamped and resin | New products, etc. | 10,026 | Apr. 2017 | Apr. 2021 | Increase production capacity of stamped products by 30%. |
| The Company Higashi Ogaki Plant (Gifu Pref., Japan) |
Stamped and resin | New products, etc. | 1,548 | May. 2018 | Apr. 2021 | - |
| The Company Yoro Plant (Gifu Pref., Japan) |
Stamped and resin, Valve | New products, etc. | 1,331 | Dec. 2017 | Sep. 2021 | - |
| The Company Kurihara Plant, Wakayanagi Plant (Miyagi Pref., Japan) |
Stamped and resin | New products, etc. | 3,357 | Feb. 2018 | Jul. 2021 | Increase production capacity of stamped products by 20%. |
| The Company Kyushu Plant (Fukuoka Pref., Japan) |
Stamped and resin | New products, etc. | 1,124 | Dec. 2017 | May. 2020 | Increase production capacity of stamped products by 20%. |
| The Company Kita Ogaki Plant (Gifu Pref., Japan) |
Valve | New products, etc. | 2,486 | Jun. 2015 | Oct. 2021 | - |
| The Company Mino Plant (Gifu Pref., Japan) |
Valve | Maintenance and retooling, etc. | 674 | Aug. 2018 | Jan. 2021 | - |
| The Company Headquarters (Gifu Pref., Japan) |
Common | Maintenance and retooling, etc. | 2,987 | Mar. 2019 | Mar. 2020 | - |
| Pacific Manufacturing Ohio, Inc. (Ohio, USA) |
Stamped and resin, Valve | New products, etc. | 1,975 | Apr. 2018 | Mar. 2020 | - |
| Pacific Manufacturing Tennessee, Inc. (Tennessee, USA) |
Stamped and resin | New products, etc. | 9,444 | Apr. 2018 | Mar. 2020 | Increase production capacity of stamped products by 280%. |
| Schrader-Bridgeport International, Inc. (Virginia, USA) |
Valve | New products, etc. | 335 | Apr. 2018 | Mar. 2020 | - |
| Schrader SAS (Doubs, France) |
Valve | New products, etc. | 469 | Jan. 2019 | Dec. 2019 | - |
| Pacific Valve (Taiwan) Co., Ltd. (Taichung, Taiwan) |
Stamped and resin, Valve | New products, etc. | 430 | Apr. 2018 | Mar. 2020 | - |
| Pacific Valve Industrial Co., Ltd. (Yangsan, Korea) |
Valve | New products, etc. | 84 | Apr. 2018 | Mar. 2020 | - |
| Pacific Air Controls Co., Ltd. (Asan, Korea) |
Valve | New products, etc. | 534 | Apr. 2018 | Mar. 2020 | - |
| Pacific Industries (Thailand) Co., Ltd. (Chachoengsao, Thailand) |
Stamped and resin, Valve | New products, etc. | 287 | Apr. 2018 | Mar. 2020 | - |
| Pacific Auto Parts(Thailand) Co., Ltd. (Rayong, Thailand) |
Stamped and resin | New products, etc. | 3,070 | Apr. 2018 | Mar. 2020 | Installed facilities and equipment to produce stamped products |
| Tianjin Pacific Auto Parts Co., Ltd. (Tianjin, China) |
Stamped and resin | New products, etc. | 2,789 | Jan. 2018 | Dec. 2019 | Increase production capacity of stamped products by 20%. |
| Changsha Pacific Hanya Auto Parts Co., Ltd. (Changsha, China) |
Stamped and resin | New products, etc. | 456 | Jan. 2018 | Dec. 2019 | - |
| Pacific Auto Parts Technology (Changshu) Co., Ltd. (Changshu, China) |
Valve | New products, etc. | 10 | Jan. 2018 | Dec. 2019 | - |