[Gen-AI Analysis] ALPHA Corporation Business Report FY2012 - MarkLines Automotive Information & Gen-AI Platform

ALPHA Corporation Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)

		FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales		47,674	47,337	0.7	-
Operating income		2,160	2,460	(12.2)	-
Ordinary income		1,837	1,939	(5.3)	-
Net income		1,072	1,519	(29.4)	-
Automobile Parts Business
Sales	Japan	20,342	20,432	(0.4)	1)
	North America	8,698	8,641	(0.7)	2)
	Asia	13,283	13,001	2.2	3)
Operating Profit	Japan	1,537	921	66.9	-An improvement in profitability that resulted from the continued cost-cutting measures.
	North America	(538)	(400)	-	-
	Asia	920	1,599	(42.5)	-Affected by the floods in Thailand.

Factors
1)
-The Company's major customers' production volume recovered. However, their transfers of production to overseas advanced.

2)
-Sales increased because the Company's major customers increased their unit-production volumes. However, the Company incurred expenses to reorganize its production operations.

3)
- Sales increased because the Company's major customers in China and Thailand increased their vehicle-unit production volumes.

R&D

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,310	1,279	1,074
Automotive Components	954	942	780

R&D Activities

Automotive Components
-In the area of new-product development, the Company is working to improve the performance of collision-avoidance and anti-theft devices for next-generation electric steering column locks (ESCLs), as well as making less expensive and lighter exterior door handles.
-The Company is working to unify the designs and functions of key-sets, exterior door handles, and interior door handles, which currently differ for each vehicle model and which should be less costly, by developing series of product items as well as standardizing parts. On the other hand, in taking into consideration how to balance standardization with the uniqueness of each market around the world, the Company is making more cost-competitive products and winning new program business from major customers in developing countries.

Investment Activities

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	2,666	2,269	2,076

-Total capital investment for Fiscal Year ended Mar. 31, 2012, was 2,666 million yen. The Company invested to;
add, rationalize and upgrade production facilities;
enhance and strengthen non-production facilities such as its R&D facilities;
-In the automotive parts business, the Company invested 208 million yen in dies and 154 million yen in machinery at Alpha Industry (Thailand) Co., Ltd. It invested 141 million in machinery in Alpha (Guangzhou) Automotive Parts Co., Ltd.

Planned Capital Investment (Automotive Components)

(As of Mar. 31, 2012)

Name (Location)	Type of facility	Planned investment (in millions of JPY)	Start	Completion
The Company
Gunma Plant (Tatebayashi City, Gunma, Japan)	Dies	298	2012.04	2013.03
Subsidiaries
Alpha Industry (Thailand) Co., Ltd. (Prachinburi, Thailand)	Machinery to manufacture products	289	2012.01	2012.12
Alpha HI-Lex S.A. de C.V. (Queretaro, Mexico)	Machinery to manufacture products	651	2012.01	2012.12
Alpha (Guanzhou) Automotive Parts Co., Ltd. (Guangzhou, Guangdong, China )	Machinery to manufacture products	273	2012.01	2012.12
	Dies	150	2012.01	2012.12
Alpha Industry Jalisco, S.A. DE. C.V.	New facility and machinery to manufacture products	2,962	2012.01	2012.12