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EAGLE INDUSTRY CO., LTD. Business report FY2007
Business Highlights
Financial
overview
Sales by division
Reorganizing domestic production structure
The Company announced that it has merged two of its domestic subsidiaries, Eagle Burgmann Japan Co., Ltd. and Eagle Burgmann Techno Co., Ltd. The name of the new company, a wholly-owned subsidiary of the Company, is Eagle Burgmann Japan Co., Ltd. The Company stated this transaction was an important step in promoting its strategic alliance with Burgmann Industries GmbH & Co. KG, a leading seal manufacturer and a subsidiary of Freudenberg & Co. of Germany. The Company, through this merger, intends to improve its management efficiency by integrating systems and operations of the two in the areas of production, development, and sales and further enhance the quality of services it offers. (From a press release on Nov. 1, 2007)
Three-year business plan
-The Company launched a three-year business plan that serves as a basis for stable growth and profitability over the mid to long term.
Numeric targets for FY2009 on a consolidated basis
(1) Sales: 100 billion JPY
(2) Operating income: 10 billion JPY
(3) Return on Assets (ROA): 6%
| In million JPY | FY2007 | FY2006 | Rate of Change(%) | Factors |
| Sales | 87,406 | 78,822 | 10.8 | - |
| Operating profit | 7,577 | 6,710 | 12.9 | - |
| Ordinary profit | 8,361 | 7,571 | 10.4 | - |
| Current net income | 3,994 | 3,679 | 8.6 | - |
| Mechanical seal division | 37,838 | 35,124 | 7.7 | Sales of products for all industries (automotive, construction, and industrial machineries) increased. |
| Special valve division | 23,510 | 19,647 | 19.7 | Sales of automotive products significantly increased |
Reorganizing domestic production structure
The Company announced that it has merged two of its domestic subsidiaries, Eagle Burgmann Japan Co., Ltd. and Eagle Burgmann Techno Co., Ltd. The name of the new company, a wholly-owned subsidiary of the Company, is Eagle Burgmann Japan Co., Ltd. The Company stated this transaction was an important step in promoting its strategic alliance with Burgmann Industries GmbH & Co. KG, a leading seal manufacturer and a subsidiary of Freudenberg & Co. of Germany. The Company, through this merger, intends to improve its management efficiency by integrating systems and operations of the two in the areas of production, development, and sales and further enhance the quality of services it offers. (From a press release on Nov. 1, 2007)
Three-year business plan
-The Company launched a three-year business plan that serves as a basis for stable growth and profitability over the mid to long term.
Numeric targets for FY2009 on a consolidated basis
(1) Sales: 100 billion JPY
(2) Operating income: 10 billion JPY
(3) Return on Assets (ROA): 6%
R&D
R&D
expenses
- R&D expenses for FY2007: 629 million yen
Recent Developments of automotive products
<Mechanical seals division>
- In the are area of seals for engine coolant circulation pumps, the Company worked on developing sliding materials that can withstand poor operating conditions, including operating with deteriorated cooling water.
- The Company continued to work on developing next-generation refrigerant seals for use in automotive air conditioner compressors.
<Special valves division>
-The Company is working on developing special valves for the next generation of in-vehicle compressors, transmissions, and suspensions; as well as engines that comply with emission regulations.
-The Company is developing turbo charger actuators.
- R&D expenses for FY2007: 629 million yen
Recent Developments of automotive products
<Mechanical seals division>
- In the are area of seals for engine coolant circulation pumps, the Company worked on developing sliding materials that can withstand poor operating conditions, including operating with deteriorated cooling water.
- The Company continued to work on developing next-generation refrigerant seals for use in automotive air conditioner compressors.
<Special valves division>
-The Company is working on developing special valves for the next generation of in-vehicle compressors, transmissions, and suspensions; as well as engines that comply with emission regulations.
-The Company is developing turbo charger actuators.
Investment Activities
Capital
investment
Investment projects
Mechanical Seal Division
(Investments by the Company)
-To increase the production capacity of automotive mechanical seals: 595 million JPY
(Investments in affiliated companies)
-630 million JPY in Eagle Industry (Wuxi) Co., Ltd. (China)
-43 million JPY in Eagle Burgmann Japan (Japan)
-66 million JPY in Shimane Eagle Co., Ltd. (Japan)
-442 million JPY in NEK Co., Ltd. (Korea)
Special Valves Division
(Investments by the Company)
-To strengthen production capacity of control valves for automotive compressors: 1,011 million JPY
-To strengthen production capacity of mechatronic valves: 591 million JPY
(Investments in affiliated companies)
-55 million JPY in Eagle Industry (Wuxi) Co., Ltd. (China)
-31 million JPY in Eagle Industry (Thailand) Co., Ltd. (Thailand)
Equipment to be installed (in million yen)
| (in in million yen) | FY 2007 | FY 2006 | FY 2005 |
| Mechanical Seal Division | 2,487 | 2,439 | 1,582 |
| Special Valves Division | 1,885 | 2,092 | 1,683 |
| Other products Division | 1,173 | 293 | 597 |
| Company wide | - | 436 | 302 |
| Total | 5,545 | 5,261 | 4,164 |
Investment projects
Mechanical Seal Division
(Investments by the Company)
-To increase the production capacity of automotive mechanical seals: 595 million JPY
(Investments in affiliated companies)
-630 million JPY in Eagle Industry (Wuxi) Co., Ltd. (China)
-43 million JPY in Eagle Burgmann Japan (Japan)
-66 million JPY in Shimane Eagle Co., Ltd. (Japan)
-442 million JPY in NEK Co., Ltd. (Korea)
Special Valves Division
(Investments by the Company)
-To strengthen production capacity of control valves for automotive compressors: 1,011 million JPY
-To strengthen production capacity of mechatronic valves: 591 million JPY
(Investments in affiliated companies)
-55 million JPY in Eagle Industry (Wuxi) Co., Ltd. (China)
-31 million JPY in Eagle Industry (Thailand) Co., Ltd. (Thailand)
Equipment to be installed (in million yen)
|
Facility (Location) |
Equipment
to be installed |
Estimated amount of investment | Period of the project | |
| from | to | |||
| Okayama
Plant (Okayama, Japan) |
Production equipment for mechanical seals | 1,072 | Apr. 2008 | Mar. 2009 |
| Production equipment for control valves etc. | 871 | Apr. 2008 | Mar. 2009 | |
| Buildings and other | 132 | Apr. 2008 | Mar. 2009 | |
| Saitama
Plant (Saitama, Japan) |
Production equipment for mechanical seals | 646 | Apr. 2008 | Mar. 2009 |
| Eagle Burgmann
Co., Ltd (Niigata, Japan) |
Production equipment for mechanical seals | 280 | Apr. 2008 | Mar. 2009 |
| NEK Co.,
Ltd. (Korea) |
Production equipment for mechanical seals | 147 | Apr. 2008 | Mar. 2009 |
| Eagle Industry
(Taiwan) Co., Ltd. (Taiwan) |
Production equipment for reed valves | 529 | Apr. 2008 | Mar. 2009 |
| Eagle Industry
(Wuxi) Co., Ltd. (China) |
Production equipment for mechanical seals | 729 | Apr. 2008 | Mar. 2009 |
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