EAGLE INDUSTRY CO., LTD. Business report FY2008
Business Highlights
Financial Overview | (in millions of JPY) |
FY2008 | FY2007 | Rate of Change(%) | Factors | |
Sales | 78,168 | 87,406 | (10.6) | - |
Operating profit | 3,246 | 7,577 | (57.2) | - |
Ordinary profit | 3,622 | 8,361 | (56.7) | - |
Current net income | 1,336 | 3,994 | (66.5) | - |
Mechanical seal division | ||||
Sales | 30,240 | 37,838 | (20.1) | -All automotive, construction and general industrial machinery products sales decreased. |
Special valve division | ||||
Sales | 21,233 | 23,510 | (9.7) | -Automotive industry product sales decreased. |
Acquisions
-In July 2008, the Company announced that it has acquired 100% shares of its French subsidiary Eagle-Witzenmann S.A.S. to make it a wholly-owned entity of the Company on May 30, 2008. The trade name of Eagle-Witzenmann S.A.S. will thus be changed to Eagle Industry France S.A.S., effective July 24, 2008. (From a press release on Jul 17, 2008)
Business Partnership
-In March 2009, the Company announced that the Company and its joint venture partner German-based Burgmann Industries GmbH & Co.(BI) have signed a cross investment (cross stock ownership) contract. While the Company will sell a 25 percent equity in its wholly owned subsidiary EagleBurgmann Japan to Burgmann International, parent company of BI, the Company will acquire a 25 percent equity in BI in an attempt to fortify global collaborative relationship. The Company will change the name of its Indian joint venture "Eagle Seals and Systems India" based in Pune to "EagleBurgmann India" effective the end of March. It is a step taken in conjunction with merging with a BI subsidiary in India as well, in the wake of enhanced relationship. The surviving company will be the Company and the name change is scheduled for March 24, 2009. (From an article in the Nikkan Jidosha Shimbun on Mar. 17, 2009)
R&D
R&D Expenditure | (in millions JPY ) |
FY2008 | FY2007 | FY2006 | |
R&D Expenses |
554 | 629 | 465 |
R&D Activities
<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.
<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.
-The Company is developing specialized valves for compressors, transmissions and also turbo charger actuators which are expected to satisfy customers' demand for improving fuel efficiency.
<Other products Division>
-The Company completed development of automotive injector components, which were made by remolding iron sintered articles.
Investment Activities
Capital Expenditure | (in millions JPY) |
FY2008 | FY2007 | FY2006 | |
Mechanical Seal Division | 2,735 | 2,487 | 2,439 |
Special Valves Division | 1,821 | 1,885 | 2,092 |
Other products Division | 1,315 | 1,173 | 293 |
Company wide | - | - | 436 |
Total | 5,872 | 5,545 | 5,261 |
Mechanical Seal Division
(Investments by the Company)
-To increase the production capacity of automotive mechanical seals: 981 million JPY
(Investments in affiliated companies)
-421 million JPY in Eagle Industry (Wuxi) Co., Ltd. (China)
-362 million JPY in EagleBurgmann India Pvt. Ltd. (India)
-135 million JPY in NEK Co., Ltd. (Korea)
Special Valves Division
(Investments by the Company)
-To strengthen production capacity of control valves for automotive compressors: 837 million JPY
-To strengthen production capacity of mechatronic valves: 118 million JPY
(Investments in affiliated companies)
-93 million JPY in Okayama Eagle Co., Ltd. (Japan)
-53 million JPY in Shimane Eagle Co., Ltd. (Japan)
Equipment to be Installed
Facility (Location) |
Location | Equipment to be installed |
Estimated amount of investment (in million JPY) | Period of the project | |
from | to | ||||
NEK Co., Ltd. | Korea | Production equipment for mechanical seals | 110 | Apr. 2009 | Mar. 2010 |
EKK Eagle (Thailand) Co., Ltd. |
Thailand | Production equipment for mechanical seals | 110 | Apr. 2009 | Mar. 2010 |
Eagle Industry (Wuxi) Co., Ltd. | China | Production equipment for mechanical seals | 169 | Apr. 2009 | Mar. 2010 |
EagleBurgmann India Pvt. Ltd. | India | Production equipment for reed valves | 182 | Apr. 2009 | Mar. 2010 |