Asmo Co., Ltd. Business report FY2008

Business Highlights

Financial Overview (in million JPY)
FY2008 FY2007 Rate of Change (%) Factors
Sales 261,410 321,154 (18.6)

-Sales decreased due to a decline in production volume of Japanese automakers inside and outside Japan as well as foreign exchange loss.

Operating income (13,785) 12,293 - -Capacity utilization loss, foreign exchange loss due to strong yen and increase in material prices such as iron put pressure on the Company's profit.
Ordinary income (15,550) 10,005 -
Net income (12,937) 3,259 - -The Company posted the impairment loss on fixed assets of Asmo North Carolina, Inc. as an extraordinary loss.

- Sales decreased by 19.5% to 212 billion 340 million yen due to decreased production volume of vehicles in Japan, decreased export of parts for vehicles that were produced overseas, and foreign exchange loss.

- Sales decreased by 31.1% to 44 billion 722 million yen due to a substantial decline in vehicle production.

<Other regions (Asia and Europe)>
- Sales decreased by 6.6% to 45 billion 157 million yen due to a decline in production volume of vehicles in Europe and ASEAN countries.


R&D Expenditure (in millions JPY)
FY2008 FY2007 FY2006
R&D Expenses
13,424 13,513 13,875

R&D Structure
-With regards to R&D activities for technical aspects of new product development, the R&D sections played a central role in further developing the company's global operations. The company furthered R&D activities in cooperation with Asmo Detroit, Inc. R&D activities are conducted with several key words in mind. These are safety, environment, comfort and convenience.

-In dealing with and responding to environmental issues, the company is conducting R&D activities to develop motors using new systems that contribute to enhancing automotive fuel consumption and reducing emission gas. The company is also working on developing new, highly efficient and light-weight drive-trains and alternative technologies that are aimed at controlling environmentally harmful substances used in products.

R&D Achievements
Next-generation products
-The Company standardized and realized mass production of its motors including electronic throttles and actuators for variable nozzle turbochargers through the development of a small and light motor.

-The Company realized mass production of a head lamp cleaner with smaller size and weight. Reduction in size and weight were achieved by optimizing pump efficiency.

-An electric fan motor, the size and weight of which were reduced and function improved through consolidation of the motor and driving circuit, was selected for mounting on vehicles.

New products
-The Company realized mass production of rear wipers stored in spoiler to improve design.

Technological Licensing-in Agreements (As of Mar. 31, 2009)
Partner Country Product Contractual Coverage
Contract Period
Canon Japan Ultrasonic wave motors -Licensing of patented technologies and receiving of technical information Jan. 1, 1998 -
Dec. 31, 2017
Matsushita Electric Industrial Co., Ltd. (Panasonic) Japan Ultrasonic wave motors -Licensing of patented technologies and receiving of technical information March 19, 1999 - automatic extension

Investment Activities

Capital Expenditure (in millions JPY)
FY2008 FY2007 FY2006
Amount of investment
18,785 21,420 26,805

-The Company focused on the investment necessary to develop successor models of the current products with reduced size and weight and improved function.

-In FY2009, the fix amount budgeted for capital expenditures (for building new facilities and expanding existing plants) is 9,100 million yen.

New Facilities
Company name Type of facility Planned total investment
(million JPY)
(Kosai City, Shizuoka Pref.)
Production of small motors 5,116