TDF Business report FY2006

Business Highlights

Financial overview
In million JPY FY2006 FY2005 Rate of Change (%) Factors
Sales 21,274 19,868 7.1 -Sales rose due to increased sales of passenger cars and recreational vehicles, although the volume of exports of components for GM Europe decreased.
Operating income 1,009 1,126 (10.5) - Operating income declined due to increased variable costs and fixed costs as a result of sharp rises in crude oil and steel prices.
Ordinary income 1,326 1,361 (2.6)
Net income 801 871 (8.0)

Challenges for FY2007
- Plant renovations:

The Company will conduct activities to improve mainly its current capacity utilization ratio, quality of dies, and overall productivity.

- Structural reform:
The Company will push forward initiatives that will enable it to be not only a large-component manufacturer but also a small-component manufacturer as well. Do to so, it will increase its production capacity in the area of small components. This will give the Company a more stable profit structure, which is less susceptible to swings in the economy. Expanding its production capacity into the area of small components will raise the Company's capability to produce small parts, an area in which it currently has less expertise.

Investment Activities

- A total of 1,983 million yen was invested to construct a new forging facility, and maintain and upgrade existing ones.

Newly added facilities (As of March 2007)
Facility name Estimated cost
(in thousand JPY)
Construction start Planned completion Note
New plant 500,000 November 2007 April 2008 -
1600 ton forging press facility 500,000 December 2007 July 2008 Enhanced capacity.
(approx. 370 ton/month)