Pacific Industrial Co., Ltd. Business Report FY ended Mar. 2020
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 165,969 | 145,030 | 14.4 | -Sales from new orders and the favorable business results contributed by Schrader |
| Operating income | 10,511 | 10,307 | 2.0 | -Increased due to better profitability as a result of higher sales and cost reductions, even though the Company posted higher depreciation expenses as a result of installing new equipment |
| Ordinary income | 11,130 | 11,767 | (5.4) | -Loss resulting from negative currency translation |
| Net income attributable to owners of the parent | 7,256 | 8,730 | (16.9) | -Posted an impairment loss |
Acquisition
-On August 31, 2018, the Company acquired all of the shares in August France Holding Company SAS and its subsidiary Schrader SAS of France. In addition, the Company's wholly owned subsidiary in the USA, Pacific Industries USA Inc. acquired 100% of the shares in Schrader-Bridgeport International, Inc. of the USA.
Medium-term management plan OCEAN-22
-The Company made a mid-term management plan that it called OCEAN-20. Operating under the plan the Company has found that it will be able to meet the plan’s consolidated sales target one year earlier than planned. As a result, it has revised its mid-term plan forward, forging a new mid-term plan called OCEAN-22.
<OCEAN-22>
| Target figures for Ocean-20 | FY ending Mar. 31, 2022 (Target) |
| Consolidated sales (billion JPY) | 175.0 |
| -Sales breakdown by products (billion JPY) | Stamping/resin product 120.0 Valve/TPMS 54.5 |
| Consolidated ordinary income | 7% range |
| ROA | 6% range |
R&D Expenses |
(in million JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| -Stamping/resin products business | 291 | 249 | 194 |
| -Valve products business | 1,223 | 852 | 612 |
| -Others | 17 | 9 | 4 |
| -In Common | 410 | 366 | 301 |
| Overall | 1,943 | 1,478 | 1,112 |
R&D Activities
| Business segment |
Departments | Major activities |
| Stamping products | -R&D department of the Technology planning center; -Stamping technology and Resin technology Departments of Stamping/resin business unit |
-Stamped products: Making use of its proprietary, ultra-high-tensile cold-stamping method, the company developed a 1180MPa high-tensile material, which it recently is delivering to Toyota in greater volume. -Plastic products: Developed an all-urethane plastic engine cover by using a urethane that demonstrates excellent performance in terms of responding to noise and vibration. It is also developing embellishments using decorating technology. |
| Valve products | -Technology and Production technology departments of the valve and TPMS business unit |
-Valves: Developing cost-competitive valves based on a joint-business project with Schrader, a company that Pacific Industries acquired in 2018 through a stock purchase. -Tire Pressure Monitoring Systems (TPMSs): Developed a snap-in TPMS transmitter that is small, lightweight, and energy efficient. -Forged-stamped products: Developed thin, lightweight transmission parts based on sheet-metal forming technology, by combing the ease of producing sheet-metal with the high-level precision of forging sheet-metal. |
| Common | -Technology planning center | -Developing technology on metal-plastic forming and on joining -R&D on composite materials; and other functions |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Stamping/resin products | 20,075 | 18,801 | 15,343 |
| -In Japan | 13,922 | 9,852 | 7,812 |
| -Outside Japan | 6,153 | 8,949 | 7,531 |
| Valve products | 3,419 | 3,236 | 5,516 |
| -In Japan | 2,501 | 1,458 | 3,529 |
| -Outside Japan | 918 | 1,777 | 1,987 |
| Others | 5 | 10 | 12 |
| Elimination | (49) | (77) | (40) |
| Total | 23,451 | 21,970 | 20,832 |
<Stamping/resin products>
-Japan: Installing stamping equipment to handle ultra-high-tensile materials; increasing production capacity, and responding to the production of new products such as dies for new vehicle models.
-Outside Japan: Investing to expand the production plants in Tennessee in the USA, and install stamping facilities and equipment.
<Valves>
-Japan: Upgrading TPMS assembly lines and installing stamping equipment for the forged-stamped-product business.
-Outside Japan: (Korea) Increasing production capacity and handling the production of new compressors
Planned Capital Investments |
(As of Mar. 31, 2020) |
| Facility (Location) |
Business segment | Purpose | Planned total investment (in million JPY) |
Start | Planned completion | Production capacity growth after completion |
| The Company Nishi Ogaki Plant (Gifu Pref., Japan) |
Stamped and resin | New products, etc. | 9,710 | Nov. 2018 | Mar. 2022 | Increase production capacity of stamped products by 20% |
| The Company Higashi Ogaki Plant (Gifu Pref., Japan) |
Stamped and resin | Increase production and streamline operations | 3,298 | Aug. 2018 | Jun. 2022 | - |
| The Company Yoro Plant (Gifu Pref., Japan) |
Stamped and resin, Valve | Increase production and streamline operations | 1,289 | Sep. 2019 |
Sep. 2021 |
Increase production capacity of forged-stamped products by 20% |
| The Company Kurihara Plant, Wakayanagi Plant (Miyagi Pref., Japan) |
Stamped and resin | Increase production | 2,493 | Apr. 2019 | Nov. 2021 | Increase production capacity of stamped products by 20% |
| The Company Kyushu Plant (Fukuoka Pref., Japan) |
Stamped and resin | Increase production and streamline operations | 1,409 | Jan. 2020 | Apr. 2022 | - |
| The Company Kita Ogaki Plant (Gifu Pref., Japan) |
Valve | Increase production and streamline operations | 4,076 | Feb. 2017 | Apr. 2022 | Increase production capacity of TPMSs by 20% |
| The Company Mino Plant (Gifu Pref., Japan) |
Valve | Increase production and streamline operations | 265 | Dec. 2019 | Jun. 2021 | - |
| The Company Headquarters (Gifu Pref., Japan) |
Common | Maintenance and retooling, etc. | 466 | Jan. 2020 | Apr. 2021 |
- |
| Pacific Manufacturing Ohio, Inc. (Ohio, USA) |
Stamped and resin, Valve | New products, etc. | 2,846 | Apr. 2019 | Mar. 2021 |
- |
| Pacific Manufacturing Tennessee, Inc. (Tennessee, USA) |
Stamped and resin | New products, etc. | 10,108 | Apr. 2019 | Mar. 2021 | Increase production capacity of stamped products by 280% |
| Schrader-Bridgeport International, Inc. (Virginia, USA) |
Valve | New products, etc. | 325 | Apr. 2019 | Mar. 2021 | - |
| Schrader SAS (Doubs, France) |
Valve | New products, etc. | 571 | Jan. 2019 | Dec. 2020 |
- |
| Pacific Valve (Taiwan) Co., Ltd. (Taichung, Taiwan) |
Stamped and resin, Valve | New products, etc. | 373 | Apr. 2019 | Mar. 2021 |
- |
| Pacific Valve Industrial Co., Ltd. (Yangsan, Korea) |
Valve | New products, etc. | 106 | Apr. 2019 | Mar. 2021 |
- |
| Pacific Air Controls Co., Ltd. (Asan, Korea) |
Valve | New products, etc. | 592 | Apr. 2019 | Mar. 2021 |
- |
| Pacific Industries (Thailand) Co., Ltd. (Chachoengsao, Thailand) |
Stamped and resin, Valve | New products, etc. | 124 | Apr. 2019 | Mar. 2021 |
- |
| Pacific Auto Parts (Thailand) Co., Ltd. (Rayong, Thailand) |
Stamped and resin | New products, etc. | 1,662 | Apr. 2019 | Mar. 2021 |
- |
| Tianjin Pacific Auto Parts Co., Ltd. (Tianjin, China) |
Stamped and resin | New products, etc. | 642 | Jan. 2019 | Dec. 2020 | - |
| Changsha Pacific Hanya Auto Parts Co., Ltd. (Changsha, China) |
Stamped and resin | New products, etc. | 527 | Jan. 2019 | Dec. 2020 | - |
| Pacific Auto Parts Technology (Changshu) Co., Ltd. (Changshu, China) |
Valve | New products, etc. | 12 | Jan. 2020 | Dec. 2020 | - |