FUJI OOZX Inc. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of Change (%) |
Remarks | |
Overall | ||||
Sales | 16,299 | 15,939 | 2.3 | - |
Operating income | 1,362 | 1,229 | 10.8 | - |
Ordinary income | 1,907 | 1,418 | 34.5 | - |
Net income | 1,387 | 839 | 65.3 | - |
Automotive parts production business |
||||
Sales | 15,563 | 15,110 | 3.0 | -Japan: Demand remained low due to lower-than-expected vehicle sales prior to the consumption tax hike in April 2014. -Overseas: Sales volume increased especially in China after Fuji Valve (Guangdong) went into full-scale operation. |
Operating income | 1,256 | 1,117 | 12.4 | - |
Business Plan
Increasing production volume of hollow engine valves-The Company will sharply increase the annual production volume of hollow engine valves to 10 million units in the fiscal year to end in March 2015 (FY 2014) and to 20 million units in FY 2016 from five million units in FY 2013. The Company expects that the high-value added hollow type will account for over 50% in exhaust valve market in a few years as a result of the spread of fuel-efficient engines. It will propose the hollow engine valves for Japanese OEMs' compact cars and minicars to expand the number of models that feature the hollow engine valves. (From an article in the Nikkan Jidosha Shimbun on April 25, 2014)
New Company
<Mexico>-In 2014, the Company announced that it will establish a subsidiary to manufacture and sell automotive engine valves in Aguascalientes, Mexico in May 2014. The new company, which will be tentatively called Fuji Oozx Mexico S.A. de C.V., will be capitalized at JPY 200 million (USD 1.97 million). It is expected to become operational by the end of 2014.
<Indonesia>
-The Company will start producing engine valves at its new plant in Indonesia by the autumn of 2014. In August 2013, the Company has formed PT. Fuji Oozx Indonesia, its first subsidiary and engine valve plant in the country. The plant's initial annual production capacity will be 6 million for the fiscal year ending March 2015 (FY2014), and will be lifted to 15 million in FY2017. Production increase in the first phase for FY2015-FY2017 will further be enhanced in the second and third phases. Recently, Japanese automakers are expanding production in Indonesia. The Company hopes to meet demands for engine valves with high durability made by Japanese suppliers.
Outlook for FY ending Mar. 2015 |
(in million JPY) |
FY ending Mar. 31, 2015 (Forecast) |
FY ended Mar. 31, 2014 (Actual Results) |
Rate of Change (%) |
|
Overall | |||
Sales | 16,500 | 16,299 | 1.2 |
Operating income | 1,100 | 1,362 | (19.2) |
Ordinary income | 1,450 | 1,907 | (24.0) |
Net income | 1,000 | 1,387 | (27.9) |
R&D
R&D Expenses |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall (Automotive parts business) | 175 | 150 | 170 |
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, 2014) |
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, 2014) |
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, 2014 |
PT. FUJI OOZX INDONESIA (Indonesia) |
Engine valves, Cotters, Retainers, etc. | Approval for non-exclusive rights for manufacturing, sales and use of technology | Sep. 26, 2013- Sep. 25, 2016 |
Investment Activities
Capital Expenditure |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall | 2,696 | 949 | 636 |
-Automotive parts business | 2,694 | 942 | 633 |
-For the fiscal year ended March 2014, the Company primarily invested in engine-valve production facilities at its automotive parts division.
Planned Capital Investments |
(As of Mar. 31, 2014) |
Facility (Location) |
Facility type | Planned Investment Amount (in million JPY) |
Start | Scheduled Completion |
Shizuoka Factory (Shizuoka Pref., Japan) |
Production facilities to manufacture engine valves | 987 | Mar. 2014 |
Mar. 2015 |
Maintenance and renewal | 381 | Mar. 2014 |
Mar. 2015 |