EAGLE INDUSTRY CO., LTD. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change(%) Factors
Sales 91,920 76,063 20.8 1)
Operating profit 8,717 4,102 112.5 -
Ordinary profit 9,142 4,998 82.9 -
Net income 4,871 2,566 92.1 -
Automotive and Construction Machinery Industries
Sales 50,163 40,547 23.7 2)

-Sales increased because of the structural reorganization the Company made and because of cost-cutting measures it implemented. In addition, higher sales were the result of the Company's conducting activities, mainly in emerging-market countries, to increase sales.

<Automotive and Construction Machinery Industries>
-In addition to increased  demand in emerging-market countries for automotive products, sales of these products also rose in Europe as well. As a result, sales were 50 billion, 163 million yen; while business operating profit was 4 billion, 73 million yen.

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

Outlook for FY2011

(in million of JPY)
Year-on-year Fluctuation
Sales 100,000 91,920 8,080
Operating income 9,300 8,717 583
Ordinary income 10,100 9,142 958
Net income 5,500 4,871 629


R&D Expenditure

(in millions JPY )
  FY2010 FY2009 FY2008
Overall 615
472 554

R&D Structure

 -The Company's Technical Center is the main function responsible for R&D activities in the Company, collaborating with the
  technical/engineering, production, and sales functions to develop products in all its business sectors.
-The Company employs 59 R&D staff members, which account for 1.3% of the total number of employees. This year, the Company will spend 615 
  million yen on R&D activities.

R&D Activities

Automotive and Construction Machinery Industries
-In carrying out R&D activities on mechanical seals for engine water-cooling circulation pumps, the Company is developing next-generation mechanical seals that have significantly higher performance in terms of reducing friction while at the same time maintaining a high level of sealing performance.

-In addition to developing conventional surface-edge type mechanical seals, the Company is also working on developing a high-performance and compact lip-edge type seal.

-In conducting R&D activities on products in the mechatronics field, the Company is developing selenoid valves for next-generation compressors, transmissions, and suspension systems.

-R&D activities in the valve and acuator segment include the development of products that respond to recent customer demand for improved fuel efficiently such as engine valves compliant with gas-emmisions regulations, and turbo-charger actuators.

-The Company is developing carbon bearings for electric pumps used in hybrid and electric vehicles.

-The Company is developing pressure reducing valves to control hydrogen gas used in fuel-cell vehicles.

-The Company is developing products that can be put to use on metal bellows used in all types of control devices.

Investment Activities

Capital Expenditure

(in millions JPY)
  FY2010 FY2009 FY2008
Overall 3,496
3,703 5,872

Automotive and Construction Machinery Industries
-The Company is investing 1 billion, 535 million yen to inicrease its production capacity in the Automotive and Construction Machinery Industries.
-The Company invested mainly to revamp and rationalize production facilities, spending 368 million yen in NEK Co., Ltd.; 206 million yen in EKK Eagle (Thailand) Co., Ltd.; and 134 million yen in Shimane Eagle. Co., Ltd.

Equipment to be Installed

Location Equipment to
be installed
Estimated amount of investment (in million JPY) Period of the project
from to
The Company's
Okayama Plant
Okayama Pref., Japan Equipment to produce mechanical seals and other products 2,503 Apr.
Equipment to produce control valves and other products
Okayama Eagle Co., Ltd. Okayama Pref., Japan Equipment to produce mechanical seals and other products 1,134 Apr.
Equipment to produce control valves and other products
Hiroshima Eagle Co., Ltd. Yamagata-gun, Hiroshima Equipment to produce mechanical seals 571 Apr.
Eagle Industry France S.A.S. France Equipment to produce control valves and other products 1,894 Apr.