ALPHA Corporation Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of Change (%) | Factors | ||
Overall | |||||
Sales | 46,749 | 47,674 | (1.9) | - | |
Operating income | 1,705 | 2,160 | (21.1) | - | |
Ordinary income | 2,788 | 1,837 | 51.8 | - | |
Net income | 1,709 | 1,072 | 59.4 | - | |
Automobile Parts Business | |||||
Sales | Japan | 15,608 | 20,342 | (23.3) | 1) |
North America | 9,400 | 8,698 | 8.1 | 2) | |
Asia | 15,438 | 13,283 | 16.2 | 3) | |
Operating Profit | Japan | 425 | 1,537 | (72.3) | - |
North America | (531) | (538) | - | 4) | |
Asia | 1,528 | 920 | 66.1 | 5) |
Factors
1) Sales - Japan
-Sales in Japan were lower year-on-year due to expenses involved with the Company's transferring production operations outside Japan in line with the initiatives its customers are taking to localize their production overseas of vehicles that they had been exporting from Japan.
2) Sales - North America
-Sales increased year-on-year, thanks to higher vehicle-production levels by OEMs.
3) Sales - Asia
-Sales increased year-on-year, thanks to higher vehicle-production levels by OEMs.
4) Operating Loss - North America
-The region reported an operating loss due to increased expenses for the year, which were incurred for initial start-up costs involved with transferring its production operations from the U.S.A. to Mexico, which it completed.
5) Operating Profit - Asia
-Operating profit increased due to improving production efficiencies and streamlining operations.
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 1,398 | 1,310 | 1,279 |
Automotive Components | 1,001 | 954 | 942 |
R&D Activities
Automotive Components- Advanced developments: Development of door-system parts/products designed to reduce weight and energy consumption, and the development of exterior door handles providing collision-safety features in addition to improved style in terms of the handles' quality feel, solid feel, and operability, reached the stage to where fundamental design structures and actual vehicle testing is now possible.
- The Company has won actual customers for its sensor units that make use of authentication technology, receiving a lot of inquiries.
- The Company is unifying both the designs and in-vehicle conditions for key-sets and exterior and interior door handles that varied for every vehicle model, systematizing products and standardizing parts, while working to reduce costs and raise the level of development efficiencies.
- The Company is working to increase its cost competitiveness by switching from global standards to product specifications optimally suited to the particular local needs of developing countries, already making preparations to launch commercial production of automotive parts after having received firm orders from its major customers.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 3,517 | 2,666 | 2,269 |
-The Company invested to;
add, rationalize and upgrade production facilities;
enhance and strengthen non-production facilities such as its R&D facilities.
Investments Outside Japan
<China>- The Company announced that it will set up a new subsidiary in Xiangyang, Hubei Province, China, which will be engaged in manufacturing and selling of automotive parts. Capitalized at 35 million yuan, approximately 430 million yen, it will be owned 25 percent by the Company and 75 percent by its subsidiary Alpha (Guangzhou) Automotive Parts Co., Ltd. The new company is expected to begin its operations in August 2013. The Company recently established three manufacturing sites to expand its production capacity in the global market: an Indian plant in March 2011, a second Mexican plant in November 2011, and an Indonesian plant in July 2012. (From a press release on October 30, 2012)
Planned Capital Investment (Automotive Components) |
(As of Mar. 31, 2013) |
Name (Location) |
Type of facility | Planned investment (in millions of JPY) |
Start | Completion |
Subsidiaries | ||||
Alpha Industry (Thailand) Co., Ltd. (Prachinburi, Thailand) |
Machinery to manufacture products | 232 | 2013.04 | 2014.03 |
Alpha (Guanzhou) Automotive Parts Co., Ltd. (Guangzhou, Guangdong, China ) |
Machinery to manufacture products | 245 | 2013.04 | 2014.03 |
Buildings | 176 | 2013.04 | 2014.03 | |
Alpha Industry Jalisco, S.A. DE. C.V. (Jalisco, Mexico) |
Machinery to manufacture products | 714 | 2013.04 | 2014.03 |
Buildings | 392 | 2013.04 | 2014.03 |