Ahresty corporation Business report FY2007
Business Highlights
Financial overview | ( in millions of JPY ) |
FY2007 | FY2006 | Rate of Change(%) | Factors | |
Overall | ||||
Sales | 129,362 | 122,761 | 5.4 | - |
Operating income | 5,821 | 7,944 | (26.7) | - |
Ordinary income | 6,185 | 7,934 | (22.0) | - |
Net income | 3,363 | 7,528 | (55.3) | - |
Die Casting Division | ||||
Sales | 116,625 | 109,686 | 6.5 | Sales increased, thanks to stronger exports to emerging countries, though sales to its main customers (domestic automakers) declined due to slowdowns in their sales in Japan and North America, with sluggish sales in North America attributed to the sub-prime loan problem. |
Operating income | 5,019 | 7,183 | (30.1) | Income declined largely because of increased depreciation costs incurred due to tax revisions. This is despite the Company's efforts to cut sales and manufacturing costs. |
Aluminum Division | ||||
Sales | 7,700 | 7,806 | 1.4 | Sales declined, as the Company's shipments of non-automotive products were slow in and after the third quarter because of lower demand and customers' curtailing their inventory, even though its sales of secondary alloy metals in the automotive industry were strong. |
Operating income | 395 | 436 | (9.4) | Income declined, as the Company failed to absorb the increased costs of materials and heavy oil, even though it tried to improve productivity and lower manufacturing costs. |
Recent Developments in Japan
Reorganization and Enhancement of Production Structure
In Aug. 2007, the Company announced that Ahresty Light Metal (Toyohashi City, Aichi Pref.), its wholly-owned subsidiary, will be merged with Ahresty Corporation as of Oct. 1, 2007. Ahresty Light Metal will, consequently, be dissolved following the completion of the merger transaction. Ahresty Light Metal, located in the premises of the Company's Toyohashi plant, supplies die-casting products to the Company. (From a press release on August 30, 2007)
In Oct. 2007, the Company announced the planned merger of two of its consolidated companies, Hamamatsu Mechatec and Tokai Seikou. The Company has decided to merge the two companies as of January 1, 2008 (yet to be finalized) in order to facilitate the better use of management resources available among its group companies and improve its overall operational efficiency as an integrated group. Consequently Hamamatsu Mechatec will be dissolved and merged with Tokai Seikou. Following the completion of the merger the newly-organized entity carries the trade name of Tokai Seikou which serves as a surviving company in the transaction. (From a press release on Oct. 23, 2007)
In Oct. 2007, the Company announced the plan to reorganize its production facilities in Japan in order to expand capacity to produce automotive specialty casting components. The company will move its production of small and mid-sized die-cast components from its Higashimatsuyama plant in Namegawa-machi, Saitama prefecture to its subsidiary Ahresty Yamagata Corporation in Shirataka-machi, Yamagata prefecture, integrating the production of such components at the subsidiary company. As a result, the Higashimatsuyama plant will become Ahresty's production center exclusively for specialty forging components for drivetrains. The supplier will invest approximately 2 billion yen to enlarge facilities and add equipment at both production plants. (From an article in the Nikkan Jidosha Shimbun on Oct. 27, 2007)
Recent Developments Outside Japan
- Ahresty Mexicana, S.A. de C.V.., its subsidiary in Mexico, began production and sales activities in August 2007.
- Ahresty India Private Limited, its subsidiary in India, is scheduled to start production and sales activities in the autumn of 2008.
R&D
R&D Expenditure | ( in millions of JPY ) |
FY2007 | FY2006 | FY2005 | |
Group | 1,271 | 1,154 | 663 |
R&D Structure
-The Company's R&D activities are focused on its die-cast products business, lead by its Engineering Department.
R&D Activities (for FY2007 which ended in March 2008)
- The Company developed and tested NI casting drivetrain components as part of its efforts to offer products that are designed based on market analysis but which provide new features. It also worked on developing high-strength engine blocks that target next-generation diesel vehicles.
- The Company is now trying to completely solve problems in mass-producing aluminum die-cast automotive body frames as part of its efforts to develop technology to create new markets. By taking part in initiatives to make lighter vehicles, the Company intends to help conserve the global environment.
Investment Activities
Investment Expenditure |
( in millions of JPY ) |
FY2007 | FY2006 | FY2005 | |
Group | 10,298 | 12,391 | 13,590 |
Die Casting Division | 10,070 | 12,216 | 13,469 |
In Oct. 2007, the Company announced the plan to reorganize its production facilities in Japan in order to expand capacity to produce automotive specialty casting components. The company will move its production of small and mid-sized die-cast components from its Higashimatsuyama plant in Namegawa-machi, Saitama prefecture to its subsidiary Ahresty Yamagata Corporation in Shirataka-machi, Yamagata prefecture, integrating the production of such components at the subsidiary company. As a result, the Higashimatsuyama plant will become Ahresty's production center exclusively for specialty forging components for drivetrains. The supplier will invest approximately 2 billion yen to enlarge facilities and add equipment at both production plants. (From an article in the Nikkan Jidosha Shimbun on Oct. 27, 2007)
Major Facilities Completed in FY2007, which ended in March 2008 (Die-Cast Business)
Facilities and Subsidiaries | Details/Activities |
Hamamatsu Plant | Additional production facilities |
Toyohashi Plant | Additional production facilities |
Ahresty Mexicana, S.A. de C.V. | New casting plant, new machining plant, new production facilities |
Ahresty Tochigi | Additional production facilities |
Current capital investments (As of March 31, 2008)
Name (Location) |
Type of facility | Planned investment (million JPY) | Start month | Planned completion | Increased capacity upon completion |
Ahresty Corporation | |||||
Toyohashi Plant (Toyohashi-shi, Aichi Pref.) |
Die casting manufacturing facilities | 578 | Apr., 2008 | Sep., 2008 | +6% |
Die casting designing facilities |
1,232 | Apr., 2008 | Feb., 2009 | - | |
HIgashimatsuyama Plant (Namekawa-cho, Saitama Pref..) | Die casting manufacturing facilities | 863 | Apr., 2008 | Nov., 2008 | - |
Die casting designing facilities |
288 | Apr., 2008 | Nov., 2008 | - | |
Subsidiaries | |||||
Ahresty Tochigi Corporation (Shimotsuga-gun, Tochigi Pref.) | Die casting designing facilities |
141 | Apr., 2008 | July, 2008 | +7% |
Ahresty Yamagata Corporation (Nishiokitama-gun, Yamagata Pref..) |
Die casting manufacturing facilities | 314 | Apr., 2008 | Oct., 2008 | +40% |
Die casting designing facilities |
410 | Apr., 2008 | Mar., 2009 | - | |
Tokai Seiko Co., Ltd. (Hamamatu-shi, Shizuoka Pref..) |
Die casting designing facilities |
319 | Apr., 2008 | Dec, 2008 | - |
Ahresty Precision Die
Mold (Guangzhou) Co., Ltd. (Guangdong, China) |
Die casting manufacturing facilities | 211 | Apr., 2007 | Mar., 2008 | +13% |
Die casting processing facilities |
966 | Apr., 2007 | Mar., 2008 | - | |
Ahresty Wilmington Corp. (Ohio, USA) |
Die casting processing facilities |
1,328 | Apr., 2008 | Oct., 2008 | - |
Ahresty Mexicana, S.A.
de C.V. ( Zacatecas, Mexico) |
Die casting manufacturing facilities | 1,106 | Apr., 2008 | Oct., 2008 | +140% |
Die casting processing facilities |
1,380 | Apr., 2008 | Dec, 2008 | - | |
Ahresty India Private Limited (Haryana, India) |
Die casting manufacturing facilities | 756 | Apr., 2008 | Sep., 2008 | - |