NICHIRIN Business report FY2007
Business Highlights
Financial overview
(in million JPY) | FY2007 | FY2006 | Rate of Change(%) | Factors |
Sales | 44,026 | 40,997 | 7.4% | -Although few new
vehicle models were launched, which usually results in sluggish
sales, domestic sales at the Company increased year-on-year,
thanks to favorable OEM business with its major customer, and
increased sales of products destined for export to China and
other Asian countries. Despite soaring prices of materials such
as metals and rubber, operating profit also rose year-on-year.
Apart from greater sales, some of the contributing factors to
the rise include improved productivity at the Company and its
subsidiaries; a shift to in-house production of some components;
the Company's having streamlined its operations including its
logistic systems; and its having reduced product selling prices. -In North America, sales of products for use in large vehicles and leisure vehicles fell due to sluggish consumer spending and high oil prices. Overall sales, however, went up from those of the previous year, thanks to favorable business including new contracts with Japanese automakers' transplants in the country. The Company, which posted an operating loss last year, returned to profitability by improving productivity, reducing costs, transferring production operations to enhance efficiency, and carrying out a business improvement project that was launched last year at its Canadian subsidiary. -Sales and profit improved in China, thanks to strong business by Japanese automakers in the country, which were supported by surging vehicle sales in the market. The Company thereby posted favorable financial results in all major automotive markets, namely, Japan, North America, Asia, and Europe. |
Ordinary income | 1,784 | 1,486 | 20.1% |
Targets for 2008
-To enhance its production lines in response to the changing global market, and to improve profitability by having its subsidiaries supply each other with parts and products they've each manufactured.
-To establish a global quality assurance system, and achieve topnotch and uniform quality levels worldwide.
-To improve its production structure based on the NNP (Nichirin New Production) initiative, and reduce costs by diversifying its purchasing methods.
-To strengthen its technical development capabilities by integrating its R&D and technological functions into the Nichirin R&D Center.
R&D
R&D
Expenses
Technology Licensed-out (as of December 2007)
New Product Development
R&D focus is set on the following areas;
Automotive hoses
-Automotive hoses that improve the safety of vehicles such as ABS hoses and brake hoses with higher braking performance and durability.
Car air conditioning hoses
-Its environmentally friendly EF-Tubes, which are CO2 piping hoses, are used in some fuel cell vehicles. The Company also supplied prototypes of the products to manufacturers of air conditioning systems inside and outside Japan. It intends to promote sales of this highly flexible and impermeable tubes to other markets as well.
Other hoses
-The Company developed hoses for systems that reduce NOx emissions from diesel engines. Mass production of these hoses is scheduled to begin in the next fiscal year.
(in thousand yen) | FY2007 | FY2006 | FY2005 |
Total | 1,005,198 | 994,411 | 850,024 |
Technology Licensed-out (as of December 2007)
Company | Country | Content of Contract | Period of Contract | |
From | To | |||
HS R&A | South Korea | Manufacturing technology for air conditioner hoses used in automobiles | Feb.24, 2007 | Feb. 23, 2010 (The contract will be renewed automatically every three years) |
Manufacturing technology for automotive brake hoses | Nov. 3, 2007 | Mar. 4, 2010 | ||
Manufacturing technology for automotive power steering hoses | Oct. 28, 2007 | Mar. 4, 2010 | ||
PT.Mitra Metal Perkasa | Indonesia | Assembling technology for automotive brake hoses | Oct. 26, 2007 | Oct. 25, 2010 |
New Product Development
R&D focus is set on the following areas;
Automotive hoses
-Automotive hoses that improve the safety of vehicles such as ABS hoses and brake hoses with higher braking performance and durability.
Car air conditioning hoses
-Its environmentally friendly EF-Tubes, which are CO2 piping hoses, are used in some fuel cell vehicles. The Company also supplied prototypes of the products to manufacturers of air conditioning systems inside and outside Japan. It intends to promote sales of this highly flexible and impermeable tubes to other markets as well.
Other hoses
-The Company developed hoses for systems that reduce NOx emissions from diesel engines. Mass production of these hoses is scheduled to begin in the next fiscal year.
Investment Activities
Capital
Investment
(in thousand yen) | FY2007 | FY2006 | FY2005 |
Japan | 695,668 | 1,170,103 | 608,920 |
North America | 225,468 | 455,492 | 437,180 |
Asia, Europe | 50,588 | 132,156 | 206,655 |
Total investment | 971,725 | 1,757,751 | 1,252,756 |