Financial Overview |
(in millions of JPY) |
|
FY2008 |
FY2007 |
Rate of change(%) |
Factors |
Overall |
Sales |
590,704 |
701,075 |
(15.7) |
-Sales decreased due to a decline in demand as
a result of the slump in the automotive and electronics industries;
and due to the reluctance of those companies to make capital
investments. |
Operating income |
15,058 |
59,698 |
(74.8) |
-Income decreased as a result of a substantial
sales decline and reduced production levels to maintain appropriate
inventory levels. |
Ordinary income |
10,235 |
54,448 |
(81.2) |
Net income |
(3,016) |
27,034 |
- |
- |
High-grade Metal Products and Materials |
Sales |
265,048 |
292,370 |
(9.3) |
-Sales of dies and tooling materials
decreased as a result of the rapid and substantial decline in
automobile production. |
Operating income |
5,735 |
28,664 |
(80.0) |
Electronics and IT Devices |
Sales |
137,264 |
191,907 |
(28.5) |
-Sales of rare earth magnets decreased
as a result of the rapid and substantial decline in automobile
production, the reluctance of companies to make capital investments,
and sluggish sales of electronics components in the third quarter
and onward.
-Sales of ferrite magnets decreased substantially due to the
significant decline in sales destined for automotive use. |
Operating income |
9,349 |
20,277 |
(53.9) |
High-grade Functional Components and Equipment |
Sales |
188,290 |
222,453 |
(15.4) |
-Sales of high-grade ductile cast
iron products decreased due to the worldwide decline in demand
for automobiles.
-Sales of heat-resistant casting products substantially decreased,
especially in North America, due to a decline in demand as a
result of sluggish automobile sales.
-Sales of aluminum wheels substantially decreased in Japan and
North America as a result of the rapid and substantial decline
in automobile production. |
Operating income |
4,238 |
16,277 |
(74.0) |
Business Restructuring
-The Company announced that it will dissolve Newport Precitocsion,
Inc. (NPI), its U.S. sub-subsidiary manufacturing power steering parts,
at the end of March 2009. Located in Newport, Tennessee, NPI produces
vanes for use in hydraulic power steering systems, targeting the North
American market. The Group decided to close NPI due to shrinking demand
for these products, as automakers are shifting to electric power steering
systems from hydraulic systems. NPI was also hit by the impact of
the slowing economy. (From an article in the Nikkan Jidosha Shimbun
on Jan. 21, 2009)
Earnings Forecast for the Fiscal Year Ending March 2010 |
(in millions of JPY) |
|
FY2008 |
FY2009 |
Rate of change(%) |
Sales |
590,704 |
460,000 |
(22) |
High-grade Metal Products and Materials |
265,048 |
205,000 |
(23) |
Electronics and IT Devices |
137,264 |
115,000 |
(16) |
High-grade Functional Components and Equipment |
188,290 |
145,000 |
(23) |
R&D Expenditure |
13,083 |
11,700 |
(14) |