NTN Corporation Business Report FY ended Mar. 2012
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011||Rate of change (%)||Factors|
|Current net income||5,993||14,399||(58.4)|
- Product sales in the automotive market decreased overall due to lower product demand from customers who were affected by the Great East Japan Earthquake and the flooding in Thailand.
- Automotive product sales increased year-on-year due to a recovery in customer demand.
- Sales of automotive products were about the same level as they were for the previous fiscal year.
＜Asia and Others＞
- While sales of automotive products increased in China year-on-year, they decreased in other Asian countries due to initial start up costs the Company incurred to launch commercial production of new products. Sales also decreased due to the damage that was caused by the flooding in Thailand.
Joint-ventures- The Company announced it held a ground breaking ceremony on April 16 to mark the start of the construction of a new manufacturing and sales company "NTN LYC (Luoyang) Bearing Corporation" in Luoyang, Henan Province. China (NTN-LYC). NTN-LYC, which is invested on a fifty/fifty basis by the company and Luoyang LYC, was established in January 2011 for manufacture and sales of second and third generations of hub bearings and needle bearings. The new joint venture will go into full production in June 2012, aiming to generate from 7 billion to 8 billion yen in sales in 2015. (From an article in the Nikkan Jidosha Shimbun on April 23, 2011)
Acquisitions- The Company announced that it will conduct a stock exchange to turn Nippon Kagaku Yakin Co., Ltd. into its wholly-owned subsidiary effective January 1, 2012. NTN now holds 79.14 percent shares of Nippon Kagaku Yakin. In accordance with this stock exchange, the shares of Nippon Kagaku Yakin will be subject to delisting. (From a press release on November 4, 2011)
- The Company announced the outcome of the tender offer for shares of Nippon Kagaku Yakin Co., Ltd., which commenced on July 28, 2011, and ended on September 7, 2011. After completion of the tender offer, NTN will hold 79.14% voting rights of Nippon Kagaku Yakin. (From a press release on September 8, 2011)
- The Company expressed its intention of reorganizing Nihon Yakin Kagaku Co., Ltd to its 100 percent owned subsidiary. Nihon Yakin Kagaku manufactures and sells powder metallurgy and plastic molded products. This acquisition will enable NTN to accelerate development of high density sintered products for auto parts like a gear and a camshaft. The company also aims to improve productivity by leveraging Nihon Kagaku Yakin's high pressure molding and mass production technologies. (From a press release on July 27, 2011)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Mid-term business plan
The Company is conducting business based on the "Yakushin 2013" mid-term business plan covering the three year period between April 2011 and March 2014.
-The Company is aiming to increase by fiscal year ending March 2014 its consolidated sales to 700 billion yen and operating profit ratio to over 10 percent through business expansions on a global basis. In its mid-term business plan called "Yakushin 2013", covering the three year period through March 2014, the company is working on stepping up operations focusing on the fast growing markets and establishing new business for next generation vehicles. Compared with its business results for the year ending March 2012, the financial targets represent an over 32 percent rise in sales and a significant boost in profit ratio. The company's automotive division will enhance its production and sales operations overseas to meet an increase in global demand, while upgrading and expanding its development and research activities. It will accelerate development of next-generation electric vehicle technologies such as in-wheel motor systems and one-motor drive systems, looking to achieve their commercialization and mass production as early as possible. The company believes such initiatives will lead to expanding its scope of business. (From an article in the Nikkan Jidosha Shimbun on August 4, 2011)
-The Company is going to increase production of automotive products such as hub bearings and constant velocity joints in Europe. The company aims to raise the volume by approximately 30 percent by 2013. Through this expansion project, the company intends to explore new customers in addition to enhancing its capability to meet rising demand in the region. NTN is looking to boost sales of auto parts in Europe to nearly 120 billion yen from the previous year's level (FY2010 ended in March 2011) of 87.7 billion yen. (From an article in the Nikkan Jidosha Shimbun on June 11, 2011)
-From June 2012 in China, NTN-LYC (Luoyang) Bearing Corporation, a joint-venture with Luoyang LYC Bearing Corporation located in Louyang, launched the manufacture and sale of bearings and needle-roller bearings to local OEMs. In addition, from October 2012 Nanjing NTN Corporation (located in Nanjing, Jiangsu Province) will begin to operate under a seamless production system, producing materials through to numerous types of finished bearings designed for construction equipment, steel plants, and wind-turbine generators, which are sectors considered to have growing demand in China.
-In Thailand, the Company established its second production facility, the Pinthong Factory, in Si Racha in Chonburi District. Commercial production of constant velocity joints is scheduled to commence from October 2012. In addition, the Company established NTPT CO., LTD., a joint venture, in February 2012 within the same plant premises. NTPT CO., LTD. will conduct forging and machining that are pre-production processes.
-In India, the Company established its Chennai Plant (in Tamil Nadu) as its second production facility in the country. The new facility started producing and selling constant velocity joints and hub-bearings in May 2012.
-In the U.S.A., its joint-venture facility in Carol Stream Illinois, NTA Precision Axle Corp., started forging, machining, and heat-treatment operations in June 2011.
-In Brazil, NTN do Brasil Producao de Semi-Eixos Ltda. Located in Guarulhos, Sao Paulo, began commercial production of constant-velocity joints from December 2011.
-In Europe, the Company increased its production capacity at NTN-SNR Roulements, raising the ratio of local production of large-sized, commercial machinery bearings designed for aircraft, wind-turbine generators, etc.
-In Japan, the Company established NTN Noto Corporation in the Noto Region of Ishikawa Prefecture. Since March 2012, the new plant has been producing numerous types of commercial-machinery bearings. The Company has been fortifying its production capacity while diversifying its production risks of commercial bearings in the region through maintaining other operations as well such as NTN Hakui and NTN Hodatsushimizu that are already online. In July 2012, the Company's NTN Akaiwa operations in Okayama Prefecture are scheduled to launch commercial production.
-In adopting a more global stance in terms of its operations, the Company reorganized its Automotive Business and its Commercial Machinery Business in April 2012 by consolidating all of its subsidiary companies in and outside Japan under the management of the divisions' headquarters. In addition, from April it established a Chinese Division Headquarters and revised its sales structure, turning sales offices into sales branches in anticipation of earning greater profits than ever before.
-In China, the Company formed a Chinese Division Headquarters and expanded the sales offices and agents in the interior region. It is quickly moving to expand its operations in China by developing new sales channels and launching operations in business sectors new to the Company.
-The Company is strengthening its after-market sales by putting to use expertise, which it gained in the automotive sector at NTN-SNR Roulements, at its operations in North and South America and Asia, mainly in China. The Company is expanding its business in the facilities-repair service of commercial machinery, increasing sales of plant-repair services covering iron and steel, mining, and paper manufacturing.
-In April 2011, the Company changed the name of the Elemental Technology R&D Center to the Advanced Technology R&D Center in order to focus its R&D activities on themes that create future markets. Also in 2011, the Company acquired Nippon Kagaku Yakin Co., Ltd. that has a tremendous level of high-tech capability in the area of die manufacturing and high-pressure forming of sintered alloys.
-The EV Systems Division, established in April 2011, is positioned as the venture capital section within the company and is responsible for not only developing products for electric vehicles (EVs) but also working to commercialize the onboard systems that are developed for EVs as soon as possible.
-In its operations overseas, the NTN China R&D Center in Shanghai began conducting R&D activities in May 2011, aiming to strengthen the local R&D capabilities in the areas of design, evaluation testing, etc.
Improving profit structure
- In order to improve the profitability of its automotive business, the Company worked on cost reduction through reviewing and changing product designs, materials, and production processes. It will also expand sales of profit-earning products, such as industrial machinery and aftermarket products to raise its profit margin. At the same time, the Company will further increase local production, global procurement, imports of products made overseas to establish a business structure insusceptible to exchange rate fluctuations.
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011||FY ended Mar. 31, 2010|
|Bearing related products||N.A.||N.A.||10,410|
|Constant-velocity joint related products||N.A.||N.A.||3,537|
|Precision apparatus products||N.A.||N.A.||739|
R&D AchievementLow-torque, seal-type deep groove ball bearing
- The company announced that it has developed a low-torque, seal-type deep groove ball bearing, which contributes to increasing motor performance of EVs. Application of NTN's newly developed grease reduces rotating torque by more than 50 percent compared with existing seal-type ball bearings used as motor support bearings. In addition, the new ball bearing offers quieter operation and longer service life than conventional products. NTN is looking to introduce the new technology to the motors of EVs, electric equipment and industrial machinery. It aims to generate 600 million yen in sales from the new bearing products in the business year ending March 2016. (From an article in the Nikkan Jidosha Shimbun on February 17, 2012)
High-load plastic pulley
- The company developed a high-load plastic pulley for auxiliary engine belts. Compared with a conventional steel pulley, the load bearing property of the new pulley made of heat-resistant, high-strength plastic is more than double to achieve the highest performance in the industry. Switching to plastic material also reduced the product weight to about one third. The company is going to market the new product globally, as demand for lighter components is further increasing in the automotive industry. Sales target for the plastic pulley is set at 200 million yen for 2013. (From an article in the Nikkan Jidosha Shimbun on January 26, 2012)
Electric braking system attached with a parking function
- The company announced that it has recently developed an electric braking system attached with a parking function as its next generation automotive braking system. A new electric brake actuator is integrated with the parking brake function and also downsized. An electronically controlled parking system makes for enhanced safety and improved convenience. NTN aims to achieve sales of 6 billion yen per year from this product. (From an article in the Nikkan Jidosha Shimbun on December 2, 2011)
Hub bearing to sustain harsh environment
- The company developed a "hub bearing to sustain harsh environment," which is highly resistant to vibrations and shocks, thus supporting a reliable driving even in the cold temperature region. The new hub bearing helps a vehicle drive for a long distance on the unpaved rough road in emerging countries and also under the cold temperature. NTN intends to market this product globally setting a sales target of 1.5 billion yen in fiscal 2013. (From an article in the Nikkan Jidosha Shimbun on November 28, 2011)
Four-wheel independently driven steering system combined with in-wheel motors
- The company announced that it has developed a four-wheel independently driven steering system combined with in-wheel motors. The new system, which is designed for two-seater 4-wheel electric commuters, integrates a new steering system combined with a compact turning rudder actuator with an original in-wheel motor system for electric commuters. The system, which installs a compact driving and steering function on all four wheels and controls driving and steering operations of all the wheels comprehensively, allows the vehicle to turn itself around at its position or move sheer laterally. (From an article in the Nikkan Jidosha Shimbun on November 24, 2011)
Deep Groove Ball Bearing for High Thrust Loads
- The company announced development of the Deep Groove Ball Bearing for High Thrust Loads with significantly high thrust load (load that acts in the direction of shaft rotation) capacity, which is triple that of existing deep groove ball bearings. The new ball bearing, which is suitable as replacement for tapered roller bearings, also offers a 60 percent reduction in rotational torque compared with general tapered roller bearings. The technology can be used for high load applications, while achieving lower torque and higher bearing efficiency required for automotive bearings. NTN aims to generate 400 million yen in sales of the new ball bearings for use in automobile drivetrain systems in fiscal year 2015. Switching to the new deep groove ball bearing from an existing tapered roller bearing can eliminate the complex pre-compression adjustment in the production process and cut down on man-hours on the assembly lines. In addition, it reduces automobile CO2 emissions and fuel consumption, while also increasing customer productivity. (From an article in the Nikkan Jidosha Shimbun on November 17, 2011)
New shift-by-wire electric actuator unit
- - The company announced development of a new shift-by-wire electric actuator unit that has been substantially reduced in weight and size. By using a high-efficiency compact ball screw technology, the new product has achieved high efficiency and reliability in shift-by-wire technology and reduction in weight as large as 60 percent. NTN aims to generate 200 million yen in sales in 2015 of this new product. Electric actuator units with the shift-by-wire system in many cases use ball screws instead of sliding screws or worm gears to increase efficiency in converting motor revolutions into linear or reciprocating motion. The new product, on the other hand, by reconsideration of the double structure of a ball screw axis and an output shaft, has consolidated these components and slashed its weight from the previous 2.7 kg to 1.1 kg. Furthermore, It has integrated a position sensor to directly detect the extrusion point of the output shaft, which eliminates installation of other position sensors.(From an article in the Nikkan Jidosha Shimbun on November 7, 2011)
Integrated Rotation Sensor Bearings
- The company commercialized the "Integrated Rotation Sensor Bearings" series, to which it has added a newly developed "Integrated Rotation Sensor Large Size Bearing," the industry's first bearing capable of detecting the rotation speed of large bearings up to 420 mm in outer diameter. It has reduced man-hours required for rotation sensor assembly, reduced the number of components and achieved a more compact housing size. NTN plans to promote the new bearing targeting industrial machinery that requires detection of rotation speed of large bearings, including the construction machinery, iron and steel facilities and wind power generators. It aims to achieve annual sales of 800 million yen in FY 2015. (From an article in the Nikkan Jidosha Shimbun on October 8, 2011)
Demonstration test of a converted EV powered by the In-wheel Motor System
- The company will begin the demonstration test of a converted EV powered by the In-wheel Motor System on public roads in Iwata City, Shizuoka Prefecture, Japan in October 2011. The demonstration test will be conducted as part of the "Pilot Program for Converted EV" within the "Business related to next-generation automobiles" initiative being organized by the Iwata City New Industrial Generation Council (tentative name) to be established in Iwata City in October. A converted EV powered by the In-wheel Motor System developed by NTN will be used as an official Iwata City vehicle, which was manufactured by Tajima Motor Corporation Co., Ltd., as part of a demonstration test on public roads in the city for next-generation EV in order to gather and analyze data on performance, safety technologies, quality and other aspects. (From a press release on September 30, 2011)
Air oil lubrication space-saving high-performance angular contact ball bearing
- The company announced on September 20 that it has developed a new rotor shaft bearing for machine tools that supplies lubricant directly from a port of the outer wheel into the inside of the bearing. The new product called "Air oil lubrication space-saving high-performance angular contact ball bearing" eliminates the necessity of a lubrication port, thus allowing the main shaft to be downsized. NTN aims to generate 100 million yen in sales in fiscal 2015. (From an article in the Nikkan Jidosha Shimbun on September 22, 2011)
The System for Rolling Bearing Design Optimization
- The company has developed the System for Rolling Bearing Design Optimization, which allows rolling bearings for use in automobile transmissions and differential gears to be designed automatically in a short time, while meeting specifications, including required product life and rigidity. This technology can shorten drastically the lead-time from receiving orders from customers to completing their design to one-sixth for deep groove ball bearings and one-eighth for angular contact ball bearings, compared with conventional products. NTN intends to improve customer services by expanding application of this system to other bearings than those for transmissions and differential gears. (From an article in the Nikkan Jidosha Shimbun on September 5, 2011)
Open-type, low torque deep groove ball bearing
- The company announced that it has developed an open-type, low torque deep groove ball bearing, which offers excellent bearing performance and lower rotating torque at the same time. Engineers of the company achieved lower torque by controlling the shear resistance of the lubrication oil inside the bearing, without compromising on lifespan or rigidity. Compared with a conventional, standard deep groove ball bearing based on a spray lubricant system, the new technology reduces rotating torque by over 25 percent. Delivering superior performance in the spray lubricant system where low amount of oil is used, the product also contributes to improving fuel economy and environmental responsiveness. (From an article in the Nikkan Jidosha Shimbun on May 20, 2011)
Technical License Agreements
|(As of Mar. 31, 2012)|
|Company||Country||Contractual coverage||Contract period|
|National Engineering Industries Ltd.||India||Technical license related to manufacture of ball bearings etc.||Nov. 2, 2011-
Nov. 1, 2012
|Tung Pei Industrial, Co., Ltd.||Taiwan||Technical license related to manufacture of constant velocity joints||March 26, 2003-
March 25, 2013
|Unidrive Pty. Ltd.||Australia||Technical license related to assembly of constant velocity joints||Feb. 15, 1983-
June 9, 2013
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011||FY ended Mar. 31, 2010|
Major investment activities in FY ended Mar. 31, 2012
-The Company invested 18,054 million yen in NTN Noto Corporation and NTN Akaiwa Corporation to build new plant buildings.
- The company held a ground-breaking ceremony in Akaiwa-shi, Okayama Prefecture, Japan to commemorate the start of construction of NTN Akaiwa Corporation. With a total investment of approximately 10 billion yen, NTN Akaiwa will manufacture and sell general bearings for automobiles and industrial machinery. The land area of the plant is 66,000 square meters. It is scheduled to begin operation in August 2012, and will employ around 160 people. (From a press release on August 17, 2011)
-The Company invested 10,517 million yen in the bearing-production facilities at the new plant of NTA Precision Axle Corp.
-The Company invested 7,807 million yen to increase the bearing production facilities at NTN-SNR Roulements.
<Asia and other regions>
-The Company made a capital investment worth 18,180 million yen at Shanghai NTN Corporation to construct new plant buildings and add new bearing production facilities; and at Nanjing NTN Corporation and NTN-LYC (Luoyang) Bearing Corporation to construct new plant buildings in line with the establishment of new plants at the companies.
Established Nanjing NTN Corporation in Nanjing, China.
- The company announced on February 13 that it will establish a new plant at the Pinthong Industrial Estate, Chonburi, Thailand. The new facility will be NTN's second production base in Thailand, following the Eastern Seaboard Plant (Eastern Seaboard Industrial Estate, Rayong) of NTN Manufacturing (Thailand) Co., Ltd. The company is investing around approximately 1 billion baht (approximately 2.5 billion yen) in the new plant, planning production launch in October this year. When the facility is completed, production of constant velocity joints (CVJs) now handled at the Eastern Seaboard Plant will be transferred to the new operation. Both plants will manufacture products other than CVJs as well, including hub bearings and ball bearings, raising their capacity in steps. (From an article in the Nikkan Jidosha Shimbun on February 15, 2012)
- The company announced that it has held an opening ceremony at the NTN China Technology Center in Shanghai, which is its first research and development base in China. In addition to a display of the cutting-edge testing and inspection equipment it has introduced to the facility, the company offered to visitors test-riding on an electric vehicle, which is equipped with NTN's in-wheel motors and steer-by-wire technology for the next generation. The technology center is located on the premises of NTN's existing Shanghai office. The new, two-story building has a total floor space of 7,200 square meters. Testing laboratories are located on the first floor, and offices on the second floor. Approximately 200 people will work at the new building. (From an article in the Nikkan Jidosha Shimbun on June 3, 2011)
Facilities (New, Eliminated, etc.)
|Name||Type of facility||Total amount
(in million JPY)
|R&D Division||R&D facility||3,831||Apr. 2008||Sep. 2013||Enhance R&D capabilities|
(Kuwana City, Mie Pref.)
|Facility for bearings||3,532||Apr. 2008||Mar. 2014||Increase production volume and streamline operations|
(Iwata City, Shizuoka Pref.)
|Facility for bearing, CVJ, precision apparatus products etc.||2,101||Apr. 2008||Jul. 2013||Streamline operations|
(Bizen City, Okayama Pref.)
|Facility for bearings and CVJs||1,802||Apr. 2008||Apr. 2013||Increase production volume and streamline operations|
(Minowa Machi, Nagano Pref.)
|Facility for bearings||676||Sep. 2008||Jun. 2012||Increase production volume and streamline operations|
|Subsidiaries and affiliates|
|NTN Akaiwa Corporation
(Akaiwa City, Okayama Pref.)
|Building and facility for bearings||9,527||Jun. 2011||Dec. 2013||New facility|
|NTN Noto Corporation
(Hakui-gun, Ishikawa Pref.)
|Building and facility for bearings||6,904||May 2011||Aug. 2013||New facility|
|NTN Mie Corporation
(Kuwana City, Mie Pref.)
|Facility for bearings||1,580||Jan. 2012||Mar. 2013||Increase production volume|
|NTA Precision Axle Corporation
|Facility for bearings||8,335||Nov. 2010||Sep. 2013||Increase production volume|
|American NTN Bearing Mfg. Corp.
|Facility for bearings||5,059||Jul. 2011||May 2013||Increase production volume|
|Facility for bearings||2,000||Jun. 2011||Jun. 2013||Increase production volume|
|SNR Rolamentos Do Brasil Ltda.
|Building and facility for bearings||1,618||Oct. 2010||Sep. 2014||Increase production volume|
|Building and facility for bearings||7,900||Apr. 2008||Mar. 2015||Increase production volume|
|Building and facility for bearings||7,525||Aug. 2010||Sep. 2014||Increase production volume|
|ICSA Industria Cuscinetti S.P.A.
|Facility for bearings||1,856||Jan. 2012||Apr. 2015||Increase production volume|
|NTN Transmissions Europe Crezancy
|Facility for CVJs||1,353||Jun. 2010||Aug. 2012||Streamline operations|
|Nanjing NTN Corporation
|Building and facility for bearings||15,281||Sep. 2011||Apr. 2014||New facility|
|Shanghai NTN Corporation
|Building and facility for bearings||14,107||Jun. 2010||Sep. 2013||Increase production volume|
|NTN-LYC (Luoyang) Bearing Corporation
|Building and facility for bearings||7,910||Jun. 2011||Jul. 2013||New facility|
|NTN NEI Manufacturing India Private Limited
|Building and facility for bearings, CVJs||2,243||Dec. 2009||Dec. 2012||Increase production volume|
|NTN Manufacturing (Thailand) Co., Ltd.
|Building and facility for CVJs||1,606||Dec. 2011||Mar. 2013||Increase production volume|
|Guangzhou NTN-Yylon Drivetrain
|Facility for CVJs||1,571||May 2011||Oct. 2013||Increase production volume|