1. Home
2. Supplier Database
3. Major Suppliers
4. NTN Corporation
5. NTN Corporation Business Report FY ended Mar. 2019

NTN Corporation Business Report FY ended Mar. 2019

Factors
-Sales in the fiscal year that ended in March 2019 were JPY 733,569 million, a year-over-year (y/y) decrease of 1.5%. Current next profit (JPY -6,958 million) fell 134.2% y/y. Even though the Industrial Machinery and After-market Businesses reported stronger sales, income and profit overall decreased because demand in the Automotive Business fell, copper prices rose, and excise taxes were paid.

<Automotive Business>
-The Automotive Business accounts for 70% of the Company’s sales. Sales generated by this business in the reporting period ending in March 2019 were JPY 491,322, or a 3.4% decrease y/y. This was due mainly to a slowdown in the Chinese economy and lower sales in Europe because of the WLTP and US sanctions on Iran. As a result, income was lower for the year.

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Mid-term Management Plan: DRIVE NTN 100

-The Company announced its DRIVE NTN 100 mid-term management plan that covers the three years between April 2018 and the end of March 2021. The Company’s targets by the end of March 2021 are sales of JPY 800 billion, operating profit of JPY 57 billion, an operating profit-margin of 7.1%, and a current net profit of JPY 30 billion. Among these figures, the targets for the Automotive Business are sales of JPY 550 billion and an operating profit of JPY 30 billion.

<Automotive Business>
As a means of countering excise taxes imposed by the USA, the Company is globalizing procurement (localizing procurement) along with ensuring profitability by offering high-added-value products for electric vehicles and automotive electrification.

 1. Development of the Low-friction Hub-bearing III to strengthen fundamental technology and fundamental products

“Low Friction Hub Bearing III”
-announced that it has developed the “Low Friction Hub Bearing III”. Newly developed grease reduces rotational friction by 62% compared to conventional product and improves the fuel efficiency by 0.53%. In addition, by optimizing the preload inside the hub bearing, the developed product reduces the rotational friction of the bearing itself with maintaining the performance. (From a press release on May 22, 2019)

 2. New Segment: The Company is focusing its R&D activities on eHub, sHub, electric-motor actuators, and in-wheel motors, in order to respond to the growth in electrification and electric vehicles. Also, it is increasing product deliveries to electric vehicles.

sHub, a hub-bearing with an auxiliary steering function.
-announced that it has developed the sHUB hub bearing, which has a steering assist function. The new hub bearing is the industry's first to be equipped on the front wheels of a vehicle. It combines a hub bearing with a mechanism for adjusting the steering angle of tires. The sHUB can be installed onto a vehicle's front wheel steering and the suspension system without replacing the existing steering device. It can correct the steering angle of the left and right wheels individually. The new product contributes to a reduction in the amount of steering wheel operation while driving of up to 40%. It can also improve vehicle responsiveness by roughly 50%. With the sHUB, NTN aims to achieve annual sales of JPY 2.5 billion in 2027. (From an article in the Nikkan Jidosha Shimbun on May 24, 2018)

「Automotive Engineering Exposition 2019」
-Announced that it will exhibit at “Automotive Engineering Exposition 2019”. The company will show a wide range of products that respond to the various needs of the automotive market, such as improving vehicle fuel efficiency, electrification, and driving stability. It will introduce “sHUB”, a hub bearing with steering assist function, “eHUB”, a hub bearing with motor generator function, electric motor actuator series, as well as its bearings and driveshafts. (From a press release on May 10, 2019)

Signed a Licensing Agreement for In-wheel Motors (IWMs)
-Announced that it has signed a technical license agreement with China-based Changchun Fawsn Auto Tech Co., Ltd. (FSAT). Under the agreement, NTN will provide FSAT with in-wheel motor (IWM) drive system technical assistance. The air-cooling type IWM drive system and the vehicle motion control technology developed by NTN will be featured on FSAT's electric vehicles (EVs). The EVs will be the first commercially available passenger cars in the world using an IWM drive system. (From an article in the Nikkan Jidosha Shimbun on April 20, 2018)

R&D Facilities

Product Development

The CFJ-W fixed constant velocity joint
-Has developed the CFJ-W fixed constant velocity joint, which has the world's largest maximum operating angle of 55 degrees and is to be used in the front driveshafts of vehicles. Constant velocity joints with a large operating angle are expected to reduce torque loss ratio, decrease the minimum turning angle, and reduce fuel consumption. NTN is planning to market the product in the U.S., China, and other markets by highlighting its ability to increase the maximum operating angle and improve efficiency of SUVs and all-wheel-drive vehicles. (From an article in the Nikkan Jidosha Shimbun on June 5, 2018)

The HEDJ-P compact plunging type constant velocity joint
-Announced that it has developed the HEDJ-P compact plunging type constant velocity joint for propeller shafts. The supplier will promote the use of the new product for SUV models that emphasize reduced noise, vibration, and harshness (NVH), with an aim to achieve sales of JPY 1.8 billion in fiscal year 2021 (ending in March 2022). The new HEDJ-P was developed based on the original joint’s design to make the outer ring more compact and the inner ring thinner specifically for use with propeller shafts. As a result, the new constant velocity joint offers a 17% reduction in weight and 6% reduction in the size of the outer diameter while maintaining the same performance as an HEDJ joint. The HEDJ-P model features reduced NVH, as well as an increased slide amount and an operating angle to adapt flexibly to various vehicle layouts. It is suitable for use in SUVs, which incorporate the part at locations for large angle movements. NTN will launch the new product globally. (From an article in the Nikkan Jidosha Shimbun on May 14, 2018)

-Capital expenditure for FY ending March 2019 is expected reach JPY 55,000 million
 

 -The Company will build a constant velocity joint production line at its hub bearing manufacturing subsidiary in Nanjing City, Jiangsu Province, China. The subsidiary, Nanjing NTN Corp., was established in 2011. The new line will produce constant velocity joints for a new order to be received from a major Nanjing-based electric vehicle (EV) venture company. Production will begin by the end of 2019, and the supply capability could be expanded to 300,000 units a year solely for the EV venture over the medium term. Nanjing NTN Corp. will supply constant velocity joints and hub bearings to an EV of the venture, which is scheduled to go into production by the end of 2019. NTN is making efforts to acquire new orders from emerging EV makers. Since 2017, NTN has been supplying constant velocity joints to NIO, specializing in manufacturing of EVs. In 2018, NTN signed a license agreement with Fawsn Auto Tech (FSAT) concerning an in-wheel motor technology for EVs. FSAT plans to begin mass production of EVs featuring the in-wheel motor in 2019. (From an article in the Nikkan Jidosha Shimbun on March 8, 2019)