[Gen-AI Analysis] EAGLE INDUSTRY CO., LTD. Business Report FY2009 - MarkLines Automotive Information & Gen-AI Platform

EAGLE INDUSTRY CO., LTD. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change(%)	Factors
Sales	76,063	78,168	(2.7)	-
Operating profit	4,102	3,246	26.4	-
Ordinary profit	4,998	3,622	38.0	-
Current net income	2,566	1,336	92.1	-
Mechanical seal division
Sales	31,388	30,240	3.8	-Sales rose as a result of selling more automotive products.
Special valve division
Sales	21,616	21,233	1.8	-Sales rose as a result of selling mainly more automotive products.

Acquisitions

-The Company announced that it will purchase all stakes in PL Automotive Holding B.V., which is based in the Netherlands and 40 percent indirectly owned by the Company through its related company, in an attempt to pursue its automotive mechanical seal operation in Europe under the management of its 100 percent owned subsidiary. The Company will purchase stakes in PL Automotive from a German based company Simrax GmbH. PL Automotive Holding is currently a wholly owned subsidiary by Simrax, which is owned 60 percent by FDS (Freudenberg Dichtungs-und Schwingungsttechnik), a business partner with NOK and 40 percent by the Company. (From an article in the Nikkan Jidosha Shimbun on July 16, 2009)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D

R&D Expenditure

(in millions JPY )

	FY2009	FY2008	FY2007
Overall	472	554	629

R&D Structure

-The Company had 67 research staff members in fiscal year 2010, which ended in March.

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.

Investment Activities

Capital Expenditure

(in millions JPY)

	FY2009	FY2008	FY2007
Mechanical Seal Division	1,463	2,735	2,487
Special Valves Division	1,357	1,821	1,885
Other products Division	882	1,315	1,173
Total	3,703	5,872	5,545

Mechanical Seal Division
(Investments by the Company)
-To increase the production capacity of automotive mechanical seals: 410 million JPY

(Investments in affiliated companies)
-234 million JPY in EagleBurgmann India Pvt. Ltd.
-158 million JPY in Eagle Industry (Wuxi) Co., Ltd.
-75 million JPY in Simrax B.V.

Special Valves Division
(Investments by the Company)
-To strengthen production capacity of control valves for automotive compressors: 582 million JPY
-To strengthen production capacity of mechatronic valves: 240 million JPY

(Investments in affiliated companies)
-348 million JPY in Eagle Industry (Wuxi) Co., Ltd.
-134 million JPY in EKK Eagle (Thailand) Co.,Ltd.

Equipment to be Installed

Facility (Location)	Location	Equipment to be installed	Estimated amount of investment (in million JPY)	Period of the project
Facility (Location)	Location	Equipment to be installed	Estimated amount of investment (in million JPY)	from	to
The Company's Okayama Plant	Okayama Pref., Japan	Equipment to produce mechanical seals and other products	292	Apr. 2010	Mar. 2011
The Company's Okayama Plant	Okayama Pref., Japan	Equipment to produce control valves and other products	248	Apr. 2010	Mar. 2011
NEK Co.,Ltd.	Korea	Equipment to produce mechanical seals	129	Apr. 2010	Mar. 2011
Eagle Industry France S.A.S.	Thailand	Equipment to produce control valves and other products	176	Apr. 2010	Mar. 2011
Eagle Industry (Wuxi) Co., Ltd.	China	Equipment to produce lead valves	167	Apr. 2010	Mar. 2011
Simrax B.V.	India	Equipment to produce mechanical seals	139	Apr. 2010	Mar. 2011