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.

-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 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
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