FUJI OOZX Inc. Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of Change (%) |
Remarks | |
Overall | ||||
Sales | 15,939 | 16,199 | (1.6) | - |
Operating income | 1,229 | 1,451 | (15.3) | - |
Ordinary income | 1,418 | 1,594 | (11.0) | - |
Net income | 839 | 780 | (7.6) | - |
Automotive parts production business |
||||
Sales | 15,110 | 15,316 | (1.3) | -In Japan: Demand fell as a result of lower sales that resulted from the end of eco-car sales incentives. -Outside Japan: There was a significant drop in exports to China. |
Operating income | 1,117 | 1,342 | (16.8) | - |
Business Plan
Re-launching production of hollow valves- The Company will enhance production capacity of hollow valves, resuming mass production of them. In addition to upgrading the current production line for hollow valves at its Shizuoka plant by the end of this fiscal year, the Company will consider installation of an additional processing machine to boost production capacity. It used to be made in large volumes, but now in small volumes only for service parts. The Company has, however, decided to resume its mass production in expectation of increasing orders from Japanese automakers eager to improve fuel efficiency of vehicles. The engine valve supplier installed equipment for making hollow valves in 1989 and began mass production in 1991, primarily for Nissan. After completion of production of the engine fitted with hollow valves, hollow valves are now produced in small numbers. The Company will, however, restart their volume production in the hope of getting increased orders. (From an article in the Nikkan Jidosha Shimbun on Nov. 8, 2012)
Strategy for Overseas Operations
-In China, the Company started manufacturing products under its seamless production system at Fuji Valve (Guangdong) Corporation, producing materials up to conducting forging and machining operations.
-The Company is considering conducting new business operations outside Japan.
Outlook for FY ending 2014 |
(in million JPY) |
FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Overall | |||
Sales | 15,950 | 15,939 | 0.1 |
Operating income | 1,000 | 1,229 | (18.6) |
Ordinary income | 1,400 | 1,418 | (1.3) |
Net income | 1,200 | 839 | 43.0 |
R&D
R&D Expenses |
(in million JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall (Automotive parts business) | 150 | 170 | 182 |
R&D Facility
-The OOZX Technical Center, located within the Shizuoka Plant premises, conducts R&D activities.R&D Activities
-The Company worked to research and develop light-weight parts and highly abrasion-resistant materials, to establish technology for manufacturing valves with high-strength materials and to enhance its research system.
Mutual Technical Assistance Agreements |
(As of Mar. 31, 2013) |
Partner (Country) |
Items | Contents | Period |
TRW Automotive U.S. LLC (USA) |
Engine valves | Approval for non-Exclusive rights for manufacturing, sales and use | Jan. 1 1996 - (Automatic renewal) |
TRW Automotive GmbH (Germany) |
Engine valves | Approval for non-Exclusive rights for manufacturing, sales and use | Jan. 1 1996 - (Automatic renewal) |
Technology Licensing-out Agreements |
(As of Mar. 31, 2013) |
Partner (Country) |
Items | Contents | Period |
Shin Han Valve Ind. Co., Ltd. (Korea) |
Engine valves | Approval for exclusive rights for manufacturing, sales of technology | Sep. 29, 2011 - Sep. 28, 2014 |
TRW Fuji Serina Co., Ltd. (Thailand) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use of technology | Jan. 1, 2011 - Dec. 31, 2015 |
TRW Fuji Valve Inc. (USA) |
Engine valves, Valve adjusters, Cotters, Valve seats | Approval for non-exclusive rights for manufacturing, sales and use of technology | Sep. 15, 1988 - dissolution of JV |
Shriram Pistons & Rings Limited (India) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use of technology | Dec. 5, 2012 - Dec. 4, 2019 |
Fuji Valve (Guangdong) Corporation (China) |
Engine valves, Cotters, Retainers | Approval for non-exclusive rights for manufacturing, sales and use of technology | Oct. 1, 2010 - Sep. 30, 2013 |
Investment Activities
Capital Expenditure |
(in million JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 949 | 636 | 567 |
-Automotive parts business | 942 | 633 | 536 |
-For the fiscal year ending March 2013, the Company primarily invested in engine-valve production facilities at its automotive parts division.
Planned Capital Investments |
(As of Mar. 31, 2013) |
Facility (Location) |
Facility type | Planned Investment Amount (in million JPY) |
Start | Scheduled Completion |
Shizuoka Factory (Shizuoka Pref., Japan) |
Production facilities to manufacture engine valves | 1,377 | Mar. 2013 |
Mar. 2014 |
Maintenance and renewal | 245 | Mar. 2013 |
Mar. 2014 |