Yachiyo Industry Co., Ltd. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 275,666 | 309,283 | (10.9) | - |
Operating profit | 2,259 | 6,050 | (62.7) | - |
Ordinary profit | 2,035 | 5,619 | (63.8) | - |
Net income | (4,231) | 391 | - | - |
Automotive components | ||||
Sales | 135,090 | 178,877 | (24.5) | 1) |
Automobile assembly | ||||
Sales | 140,405 | 130,167 | 7.9 | 2) |
Factors
1)
Automotive components
<Japan>
-Sales in Japan dropped by 30.5 percent year-on-year to 60,957 million yen due to a significant decrease in overall sales.
<North America>
-Sales in North America decreased 34.7 percent year-on-year to 29,208 million yen because of a significant fall in business at its Group companies, namely AY Mfg., Ltd.; US Yachiyo Inc.; Yachiyo Mfg. of Alabama LLC (in the U.S.A.), and Yachiyo of Ontario Mfg., Inc. (in Canada. Sales were negatively affected also by currency translation.
<Asia>
-The company gained additional business at both Yachiyo Zhongshan Manufacturing Co., Ltd. (Zhongshan, China) and Goshi-Thanglong Auto-Parts Co., Ltd. (Vietnam); and also increased its revenue at Goshi India Auto Parts Private Limited (India), which started operating in December 2008. Its overall sales in Asia, however, decreased 3.3 percent year-on-year to 44,925 million yen due to a significant decline in business at Siam Yachiyo Co., Ltd. (Thailand) and losses from currency translation.
2)
Automobile assembly
-Although the sales volume of complete vehicles decreased, revenue at the automobile assembly division increased 7.9 percent year-on-year to 140,405 million yen. The reason for the increase was that sales of engines and transmission systems were added to the division's revenue after the company's new engine assembly plant started operations in May 2009.
Contracts
-In December 2009, the Yokkaichi Plant began assembling the Honda Acty truck after the model was fully remodeled for the first time in 10 years.-In January 2010, Yachiyo Wuhan Mfg. Co., Ltd. started manufacturing sunroofs for the Honda CR-V assembled at Dongfeng Honda Automobile. The Wuhan facility became Yachiyo's second sunroof plant in China, following Yachiyo Zhongshan Manufacturing Co., Ltd.
-In January 2010, Yachiyo Mfg. of Alabama LLC started producing plastic fuel tanks for installation in the Honda Odyssey built at Honda's Alabama factory. The Alabama facility became Yachiyo's second supply hub for plastic fuel tanks in North America, following US Yachiyo Inc. in Ohio, U.S.A.
Joint Ventures
-The Company announced its plan to establish a plastic fuel tank production subsidiary in Sao Paulo, Brazil, which will mark the company's first entry into South America. The new facility will be set up this month, with a start-up capital of approx. 2 billion yen, of which 75 percent will be provided by the Company and the remaining 25 percent by Honda South America Ltda. It will start commercial operations in Oct. 2011 to supply plastic fuel tanks for the upcoming models of the Civic and the City flex fuel vehicles to be assembled at Honda's local facility. (From an article in the Nikkan Jidosha Shimbun on Sep. 8, 2009)Recent Developments Outside Japan
-The Company considers plastic fuel tank production in Europe Yachiyo Industry Co., Ltd. has started studies on possible manufacturing of plastic fuel tanks in Europe in order to enhance its auto parts business. As for the plastic fuel tank, it has started production at its second North American plant in addition to manufacturing in Japan. Production is also scheduled to begin in Brazil, South America, in 2011. In Asia it has two plants in China and one in Thailand. The Company has thus accelerated overseas production operations and will, therefore, consider local production in Europe, where its operation is comparatively insufficient. (From an article in the Nikkan Jidosha Shimbun on Jan. 18, 2010)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Outlook for FY2010 |
(in billions of JPY) |
FY2010 | FY2009 | Year-on-year comparison | |
Sales | 310.0 | 275.7 | 34.3 |
Automotive components field | 165.0 | 135.3 | 4.6 |
Automobile Assembly | 145.0 | 140.4 | 29.7 |
Operating profit | 5.50 | 2.26 | 3.24 |
Ordinary profit | 5.00 | 2.04 | 2.96 |
Net income | 1.60 | (4.23) | 5.83 |
Sales Volume Forecasts (parts business - tank) |
(in 1,000 units) |
FY2010 | FY2009 | Year-on-year comparison | |
Total production volume | 3,222 | 2,589 | 633 |
Japan | 1,060 | 962 | 98 |
North America | 1,038 | 687 | 351 |
Thailand | 436 | 352 | 84 |
China | 688 | 588 | 100 |
Sales Volume Forecast (parts business - sunroof) |
(in 1,000 units) |
FY2010 | FY2009 | Year-on-year comparison | |
Total production volume | 1,305 | 1,065 | 240 |
Japan | 151 | 176 | (25) |
North America | 662 | 530 | 132 |
China | 492 | 359 | 133 |
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 2,770 | 2,240 | 1,657 |
R&D Facilities
Tochigi R&D Center | Tochigi Pref., Japan |
Goshi Giken Co., Ltd. | Kumamoto Pref., Japan |
Yachiyo of America Inc. | Ohio, U.S.A. |
R&D Activities
1) Development of technology to mass-produce fuel tanks for new vehicle models2) Development of technology to mass-produce lightweight and low-profile sunroofs
3) Development of fuel tanks for new vehicle models
4) Development of lightweight and low-profile sunroofs for new vehicle models
5) Research and development of new-design resin fuel tanks
6) Research and development of new types of sunroofs and related technologies
7) Research and development of environmentally friendly auto parts
8) Research and development of press forming technology capable of handling semi-melted aluminum materials
9) Research and development of new products leveraging plastic fuel tank technology
Investment Activities
Investment Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 10,316 | 23,407 | 21,874 |
Automotive components | 5,360 | 14,281 | 15,339 |
Automobile assembly | 4,955 | 9,007 | 6,507 |
Automotive components
-The automotive components division focused its investment activities on preparing production lines to manufacture products for new program business, increasing its production capacity; and building additional plants.
Automobile assembly
-The automobile assembly division focused its investment activities on preparing production lines to manufacture products for new program business, increasing its production capacity; and building additional plants.
Planned Capital Investments
(As of Mar. 31, 2010)
Name | Purpose | Planned total investment (in millions of JPY) | Starting | Planned completion |
Kashiwabara Plant (Saitama Prefecture, Japan) |
Production facilities R&D facilities |
2,123 | 2010.03 | 2011.01 |
Yokkaichi Plant (Mie Prefecture, Japan) |
Production facilities | 4,025 | 2010.04 | 2011.03 |
Suzuka Plant (Mie Prefecture, Japan) |
Production facilities | 849 | 2010.02 | 2011.03 |
Kameyama Office (Mie Prefecture, Japan) |
Production facilities | 93 | 2010.05 | 2011.03 |
Tochigi Research Center (Tochigi Prefecture, Japan) |
R&D facilities | 288 | 2010.04 | 2011.02 |
Goshi Giken Co., Ltd. (Kumamoto Prefecture, Japan) |
Production facilities | 832 | 2009.10 | 2011.03 |
Yachiyo of Ontario Mfg., Inc. (Ontario, Canada) |
Production facilities | 898 | 2009.01 | 2010.12 |
AY Manufacturing Ltd. (Ohio, USA) |
Production facilities | 829 | 2009.07 | 2010.12 |
Yachiyo de Brasil Industria e Comercio de Pecas Ltda. (Sao Paulo, Brazil) |
Production facilities | 1,223 | 2010.04 | 2010.11 |
Siam Goshi Mfg. Co., Ltd. (Rayong, Thailand) |
Production facilities | 494 | 2009.02 | 2010.12 |
Yachiyo Zhongshan Manufacturing Co., Ltd. (Zhongshan, China) |
Production facilities | 376 | 2009.12 | 2010.12 |