Ahresty Corp. Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change
Sales 136,657 144,451 (5.4) -
Operating income 6,912 5,385 28.4 -
Ordinary income 6,256 4,077 53.4 -
Net income 4,992 3,062 63.0 -
Die Casting Division - Japan
Sales 63,008 63,583 (0.9) -Sales decreased due to a sharp drop in the aluminum ingot market, although exports to North America remained strong and product orders increased.
Operating income 2,519 2,769 (9.0) -Operating income decreased due to higher depreciation expenses and labor costs.
Die Casting Division - North America
Sales 40,854 45,760 (10.7) -Sales of light trucks remained strong, along with product orders for light-truck parts. However, sales decreased because the number of orders for end-of-life models were lower, the aluminum ingot market was down, and the effect of negative currency translation impacted business performance.
Operating income 2,163 1,521 42.2 -Operating income increased due to enhanced productivity at the Mexico Plant.
Die Casting Division - Asia
Sales 26,128 27,594 (5.3) -China: Sales of small/compact cars by Japanese OEMs surpassed those of the previous year because of the tax incentives (reductions) on small cars that went into effect one year before. New orders for products that were placed in line with the higher sales volumes of small cars increased.
-India: Orders decreased because the volume of parts supplied to diesel
-engine vehicles was lower as a result of a change in customer needs.
-Sales were lower due to a drop in the aluminum ingot market and the effect of negative currency translation.
Operating income 1,758 573 206.8 -Operating income increased due to higher production volumes mainly in China.
Aluminum Division
Sales 4,402 4,921 (10.5) -Sales decreased due to lower product selling prices because of a drop in the aluminum ingot market, although the volume of products sold increased year-over-year.
Operating income 274 338 (18.9) -Operating income decreased due to lower profits because of a drop in product selling prices.

Mid-term Management Plan

1618 Mid-term Plan (from FY ending in March 2017 through FY ending in March 2019)
-Achieve Highest Customer Satisfaction Rating for Hard-to-Develop Products

  • Business environment: Increasing use of lighter weight, aluminum die-cast products. Increasing automotive demand mainly in emerging countries. Stimulating demand in developed countries. Decreasing automotive sales in Japan because of an aging population.
  • Initiatives: Conducting sales activities worldwide. Promoting sales activities to European- and US-based OEMs so as to win them as new customers. Setting up new production lines worldwide, which are highly efficient in terms of investment and productivity, keeping all production facilities on an even level.

-Establish product-creation processes based on global standards
-Financial Targets: Sales (JPY 150 billion), Operating profit margin (5.5%)

Ahresty 10-year Vision
-Quest for Reliability 2025: Create products that reduce vehicle weight worldwide, with sales over JPY 200 billion.

  • 2009-2010: Improve corporate structure to remain in business.
  • 2010-2012: Strengthen foundations especially to improve quality.
  • 2013-2015: Improve profitability by focusing on product creation.
  • 2016-2018: Achieve same level of product creativity and quality worldwide.


-In June 2014, Guangzhou Ahresty Casting in China started delivering products to the Volkswagen Group.
-In April 2015, Ahresty India started delivering 2-cylinder diesel blocks, which were developed jointly with Maruti Suzuki.

Models Featuring the Company's Products (Based on information released in June 2016)

  • Subaru: Legacy, Legacy Outback, Impreza, Forester, XV (including HV version), BRZ, WRX S/4 STI, Levorg, Exiga
  • Nissan: Altima, Cima, March, Fuga, Elgrand, Murano, Serena, GT-R, Skyline, Teana, DAYZ, Infiniti, X-Trail
  • Mitsubishi: Galant Fortis, Delica D:5, RVR, Outlander, Lancer Evolution X, eK Wagon, eK Space, TRITON
  • Honda: Legend, Fit (including HV and EV versions), Freed, CR-Z, StepWGN, Accord (including HV version), N-Box, N-One, N-WGN, Odyssey, Vezel, Grace, Shuttle, S660
  • Acura: RDX, MDX, TLX
  • Suzuki: MR Wagon, Palette, Alto, Kizashi, Wagon R, Swift, SX4, Spacia, Hustler, Celerio
  • Toyota: MIRAI, Etios, Vitz, Ractis, Mark X, Century, Land Cruiser, Tundra, Estima Hybrid, Vellfire, RAV4, SAI, Harrier, Crown (including HV version), Corolla US, 86
  • Lexus: HS250, RX450h, LS600h, IS, NX300h, RC/RC F
  • Daihatsu: Atrai, Hijet
  • Hino: Dutro (including HV version), Ranger
  • Chrysler: Grand Cherokee, Cherokee
  • Ford: Fiesta, Focus
  • GM: Chevrolet Silverado, GMC Sierra
  • Mercedes-Benz: M-Class (including HV version), GLA
  • Audi: A4L, Q5, A3
  • VW: Golf 7

R&D Activities

-Further enhancing the quality of powertrain parts making use of proprietary vacuum technology.
-Developing rugged vehicle body parts
-Further expanding production plants and the application of development technology.
-Developing manufacturing technology on high
-quality powertrain and vehicle body parts.
-Developing technology to further reduce vehicle body weight and improve fuel efficiency.

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Total 451 493 448

R&D Facilities

Name Location
Technical Center Aichi Pref., Japan

Capital Investment in Japan

-In March 2015, the Company began a project to add another casting plant at Ahresty Tochigi, in order to increase capacity and be able to cope with greater numbers of orders. This plant, the 6th plant, was completed in September 2015, with facilities expected to be installed by November 2016. However, the die-cast machine was completed earlier, and has since commenced operating. The monthly capacity will be increased from the current 2,800 tons, to 3,000 tons.

Capital Investment outside Japan

-April 2014: Started project to expand the casting plant building at Ahresty Mexicana, which was completed in September the same year.
-July 2014: Completed a plant-expansion project at Ahresty India.
-September 2014: Completed the second phase of a plant-construction project next to Guangzhou Ahresty Casting in China.
-November 2014: Started a project to expand the facilities at Ahresty Wilmington in the U.S., which was completed in June 2015. As a result, with the addition of two casting machines, the casting area was increased. Plus, the expansion added more warehouse space.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Total 7,046 9,064 9,841
-Die Casting Division 6,998 9,015 9,631

-Capital investment in the fiscal year that ended in March 2017:
Total: JPY 13.6 billion
Dies: JPY 6.6 billion
Other than dies: JPY 7.0 billion

- Capital investment in the fiscal year ending in March 2018
Total: JPY 23.2 billion
Dies: JPY 7.0 billion
Other than dies: JP16.2 billion

Facilities completed in the FY ended in Mar. 2016 (Die-cast business)

Company Name
Ahresty Wilmington Corporation
Additional production facilities and equipment
Ahresty Mexicana S.A. de C.V.
Additional production facilities and equipment
Ahresty Tochigi Co., Ltd.
(Tochigi Pref., Japan)
Additional production facilities and equipment

Planned Capital Investment

(As of Mar. 31, 2016)
Name Location Type of facility Planned investment
(in million JPY)
Start month Planned completion
Home office Tokai Plant Toyohashi, Aichi Prefecture Die-cast production facilities 540 Apr. 2017 Mar. 2018
Ahresty Tochigi Corporation Tochigi Pref.,
Die-cast production facilities 560 Apr. 2017 Mar. 2018
Die-cast processing facilities 710 Apr. 2017 Mar. 2018
Ahresty Wilmington Corporation Ohio,
Die-cast processing facilities 720 Apr. 2017 Mar. 2018
Ahresty Mexicana S.A. de C.V. Zacatecas,
Die-cast processing facilities 1,490 Apr. 2017 Mar. 2018
Guangzhou Ahresty Casting Co., Ltd. Guangdong,
Die-cast processing facilities 1,060 Apr. 2017 Mar. 2018
Hefei Ahresty Casting Co., Ltd. Anhui,
Die-cast production facilities 1,670 Apr. 2017 Mar. 2018
Die-cast processing facilities 550 Apr. 2017 Mar. 2018

Outlook for FY ending March 2018

(in million JPY)
FY ending in Mar. 2018
FY ended in Mar. 2017
(Actual results)
Rate of Change
Sales 142,000 136,657 3.9
-Die-cast business in Japan 66,900 63,008 6.2
-Die-cast business in North America 39,900 40,854 (2.3)
-Die-cast business in Asia 28,400 26,128 8.7
-Aluminum business 4,600 4,402 4.5
-完成品事業 2,200 2,263 (2.8)
Operating profit 7,000 6,912 1.3
Ordinary profit 6,400 6,256 2.3
Profit for the year attributable to owners of the parent 4,400 4,992 (11.9)

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