NIFCO Inc. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of change (%) |
Factors | |
Overall | ||||
Sales | 107,505 | 122,518 | (12.3) | - |
Operating income | 8,553 | 7,237 | 18.2 | - |
Ordinary income | 8,118 | 6,906 | 17.5 | - |
Current net income | 4,468 | 3,934 | 13.6 | - |
Industrial plastic parts and components | ||||
Sales | 89,512 | 101,469 | (11.8) | 1) |
Operating income | 10,848 | 9,479 | 14.4 | 2) |
Factors
Industrial plastic parts and components
1)
<Sales in the Japanese auto industry>
-Sales of the Company's products declined because there was a higher percentage of compact cars being produced in Japan, and the Company supplies a relatively small amount of products to compact cars.
<Sales in the auto industry outside Japan>
-Sales at the Company's subsidiary in China recovered in the latter half of the year. But its full-year sales declined because Japanese OEMs reduced their volumes produced outside Japan as a result of suffering from the economic slowdown that started in and after the first half of the year.
2)
-The Company postponed expanding plants and facilities at its subsidiaries outside Japan, consolidated two of its US subsidiaries (with the merger completed on April 1, 2009), and took several other rationalization measures.
New Company
-The Company announced that it will establish a subsidiary in Tianjin, China. Since 1996 when it first opened its operation in Shanghai, it has worked on the business in China at four locations including two in Dongguan and one in Beijing. By setting up the fifth operation in Tianjin, it aims to enhance its business in China, which is expected to become the world's largest automobile market. The new company, tentatively named as Nifco Tianjin Co. Ltd., is scheduled to be established in December with a capital of US$7 million (approx. 630 million yen) and fifty employees for manufacture and sale of plastic components. Nifco (Hong Kong) Ltd., a 100% subsidiary of the Company, will fully fund this Tianjin subsidiary. (From an article in the Nikkan Jidosha Shimbun on Nov. 7, 2009)>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income, etc.)
Outlook for FY2010 |
(in billions of JPY) |
FY2010 | FY2009 | Rate of change (%) |
|
Sales | 112.0 | 107.5 | 4.2 |
Operating income | 10.0 | 8.5 | 17.6 |
Ordinary income | 9.8 | 8.1 | 21.0 |
Net income | 6.0 | 4.4 | 36.4 |
R&D Expenditure | 1.8 | 1.3 | 38.5 |
Investment Expenditure | 10.0 | 5.6 | 78.6 |
Plastic Molded Products Business Division: Sales by Region |
(in billions of JPY) |
FY2010 | FY2009 | Rate of change (%) |
|
Japan | 53.5 | 51.9 | 3.1 |
North America | 11.0 | 8.6 | 27.9 |
Europe | 5.5 | 5.2 | 5.8 |
Asia | 25.4 | 23.6 | 7.6 |
Total | 95.4 | 89.5 | 6.6 |
Three-year plan |
(in billions of JPY) |
FY2010 (Target) |
FY2009 (Budget) |
FY2008 (Actual) |
|
Sales | 150.0 | 112.0 | 1,075 |
Operating income | 18.0 | 10.0 | 85 |
Aggressive Investment in Growing Markets
<China>-Responding to the Chinese market based on its continued growth.
-Strengthening local facilities in Tianjin and other areas.
<India>
-Studying the possible launch of operations in Northern and Southern India.
<North America>
-Strengthening facilities in Mexico. (anticipating entry into the Brazilian market)
<New markets>
-Considering new investments in Indonesia and Brazil (particularly in the automobile and motor cycle markets).
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 1,360 | 1,710 | 2,018 |
Industrial plastic parts and components | 1,344 | 1,685 | 1,775 |
R&D Activities
Automotive-Making use of its eco-friendly technology, the Company commercialized fuel tank components that comply with the world's most stringent automotive emission regulations.
-The Company worked on commercializing alternative fuel (ethanol) filters that will help cut C02 emissions and prevent global warming.
-The Company conducted development activities aimed at further improving the quality of its interior components and its maintaining its competitive edge in the global market.
-The Company expanded the applications of its exterior components such as dumpers, using them on Plug-in Hybrid Vehicles (PHEVs).
Technical Alliance Agreements
(As of Mar. 31, 2010)
Company Name (Location) |
Contract Coverage | Contract Term |
Illinois Tool Works Inc. (USA) |
Plastic buckles | Until Aug. 27, 2023 |
Technical License Agreements
(As of Mar. 31, 2010)
Company Name (Location) |
Contract Coverage | Contract Term |
Nifco Taiwan Corporation (Taiwan) |
Manufacturing technologies for plastic buckles and industrial fasteners | Until Dec. 31, 2010 |
Nifco Korea Inc. (Korea) |
Manufacturing technologies for plastic buckles and fasteners | Until Dec. 31, 2014 |
Union Nifco Co, Ltd. (Thailand) |
Manufacturing technologies for plastic buckles; and assembling both plastic and metal fasteners | Until Dec. 31, 2011 |
Nifco Manufacturing (Malaysia) Sdn. Bhd (Malaysia) |
Manufacturing technologies for plastic buckles and fasteners | Until Dec. 31, 2012 |
Nifco (Hong Kong) Ltd. (Hong Kong) |
Manufacturing technologies for plastic buckles, plastic or metal fastener assembly | Until Dec. 31, 2010 |
Nifco U.K. Ltd. (UK) |
Industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2014 |
Nifco America Corporation (USA) |
Industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2014 |
Nifco Products Espana S.L.U. (Spain) |
Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2012 |
Shanghai Nifco Plastic Manufacturer Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2012 |
Dongguan Nifco Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2012 |
Nifco Thailand Co., Ltd. (Thailand) |
Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2013 |
Tifco (Dongguan) Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2011 |
Beijing Nifco Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2010 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 5,574 | 11,474 | 9,803 |
Industrial plastic parts and components | 2,367 | 3,865 | 5,006 |
Industrial plastic parts and components
-The Company made a capital investment for the purpose of making dies for new products in response to new orders from Japanese automakers. It also invested in facilities for making fuel system products and automatic assemblers.
<USA>
-Nifco America Corporation invested 512 million yen mainly in information equipment in order to further improve its work efficiency and reduce its inventory.
<Korea>
-Nifco Korea Inc. made a capital investment of 467 million yen.
<China>
-Beijing Nifco Co., Ltd. made a capital investment of 442 million yen.
-Nifco (Hong Kong) Ltd.; Shanghai Nifco Plastic Manufacturer Co.; Ltd. and Dongguan Nifco Co., Ltd. made a capital investment of 297 million yen collectively.
<Thailand>
-Nifco Thailand Co., Ltd. made a capital investment of 403 million yen.
Freezing Investment in Plants
-In response to fluctuating demand in the second half of fiscal year 2009, the Company reviewed its investment plans, deciding to freeze investments for building new facilities or expanding those at existing plants in Thailand, Korea and Utsunomiya, Japan.Facility Construction Plans (Industrial plastic parts and components business)
(As of Mar. 31, 2010)
Company/ Facility (Location) |
Facility | Investment Amount (in million JPY) |
From | To |
Utsunomiya Plant (Tochigi Pref., Japan) |
Buildings and plants | 80 | Apr. 2010 |
Mar. 2011 |
Mechanical equipment and measuring instruments | 283 | |||
Sagamihara Plant (Kanagawa Pref., Japan) |
Buildings and plants | 193 | Apr. 2010 |
Mar. 2011 |
Mechanical equipment and measuring instruments | 615 | |||
Nagoya Plant (Aichi Pref., Japan) |
Buildings and plants | 124 | Apr. 2010 |
Mar. 2011 |
Mechanical equipment and measuring instruments | 430 | |||
Other plants | Buildings and plants | 47 | - | - |
Mechanical equipment and measuring instruments | 345 | |||
Land | 1,218 | |||
All plants | Dies | 1,407 | - | - |
Beijing Nifco Co., Ltd. (Beijing, China) |
Buildings and plants | 449 | Jul. 2008 |
Jul. 2010 |
Nifco Thailand Co., Ltd. (Chonburi, Thailand) |
Buildings and plants | 706 | Oct. 2009 |
June, 2010 |
Nifco Tianjin Co. Ltd. (Tianjin, China) |
Buildings and plants | 756 | Apr. 2009 |
Dec. 2010 |
Mechanical equipment and tools | 285 |