Eagle Industry Co., Ltd. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in million JPY) |
FY ended March 2014 | FY ended March 2013 | Rate of Change (%) | Factors | |
Sales | 124,709 | 102,817 | 21.3 | - |
Operating income | 11,403 | 7,579 | 50.5 | - |
Ordinary income |
14,523 | 8,934 | 62.6 | - |
Net income | 7,426 | 4,501 | 65.0 | - |
Automotive and Construction Machinery Industries | ||||
Sales | 77,700 | 60,019 | 29.5 | -While growth in Southeast Asia slowed down, it remained strong in Europe, the U.S.A., and China. |
Recent Development Outside Japan
<Mexico>-EKK Eagle Industry Mexico S.A. de C.V., a subsidiary in the state of San Luis Potosi, launched commercial operations in May 2014. The subsidiary has 11,986 sq. meters of floor space and will initially manufacture solenoid valves for transmissions. It will later manufacture water-pump seals and AC control valves. Its sales at the end of March 2015 are forecast to be JPY 5,000 million, and by the end of March 2021 they are forecast to grow to JPY 10,000 million.
Outlook for FY ending Mar. 31, 2015 |
(in million of JPY) |
FY ending Mar. 31, 2015 (Forecast) |
FY ended Mar. 31, 2014 (Actual Results) |
Rate of Change (%) |
|
Sales | 135,000 | 124,709 | 8.3 |
Operating income | 12,500 | 11,403 | 9.6 |
Ordinary income | 14,700 | 14,523 | 1.2 |
Net income | 8,000 | 7,426 | 7.7 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Mid-term Management Plan
-The New Three-year Mid-term Plan announced in 2014 covers FY2014-2016 (April 2014-March 2017). It calls for developing globally efficient management and new products with long-term potential that make use of proprietary technical expertise. The following are the targeted figures by the final year.- Sales: JPY 150,000 million
- Operating profit: JPY 15,000 million (profit margin of 10%)
- Sales at Automotive and Construction Equipment: JPY 92,000 million (18% increase over FY2013 that ended March 2014)
R&D
R&D Expenditure |
(in million JPY) |
FY ended March 2014 | FY ended March 2013 | FY ended March 2012 | |
Overall | 1,163 | 755 | 676 |
-Automotive and Construction Machinery | 862 | 474 | 381 |
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 has 86 staff working in R&D, accounting for 1.7% of its total workforce.
R&D Activities
Automotive and Construction Machinery-Mechanical seals for engine coolant circulation pumps:
- The Company is developing next-generation mechanical seals that significantly reduce frictional force while at the same time maintain a high level of sealing performance.
- The Company completed development; and commenced mass production of a carbon bearing for electric water-pumps, which demonstrates excellent performance in terms of wear and abrasion resistance.
- The Company is developing carbon bearings that significantly reduce friction.
- Magnetic control valves using metal bellows.
- Hydrogen gas control valves for use in FCVs
- Products with metal bellows for use in control devices.
Investment Activities
Capital Expenditure |
(in million JPY) |
FY ended March 2014 | FY ended March 2013 | FY ended March 2012 | |
Overall | 8,178 | 8,527 | 8,821 |
-Automotive and Construction Machinery | 4,840 | 6,182 | 7,165 |
Automotive and Construction Machinery
-In fiscal year ended Mar. 31, 2014, the Company made capital investments mainly to increase its production capacity, especially at the following locations.
- The Company: JPY 1,537 million
- Eagle Industry France S.A.S.: JPY 949 million
- P.T. Eagle Industry Indonesia: JPY 468 million
- Shimane Eagle Co., Ltd.: 326 million JPY
Investments Outside Japan
<Hungary>-The Company plans to construct new plant in Hungary. The plant will be established in 2016 to manufacture engine valves.
Planned Capital Investment |
(As of Mar. 31, 2014) |
Facility (Location) |
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 | 2,885 | Apr. 2014 |
Mar. 2015 |
Equipment to produce special valves | |||||
Hiroshima Eagle Co., Ltd. | Hiroshima Pref., Japan |
Equipment to produce mechanical seals | 402 | Apr. 2014 |
Mar. 2015 |
Equipment to produce special valves | |||||
Eagle Industry France S.A.S. | France | Equipment to produce special valves | 1,819 | Apr. 2014 |
Mar. 2015 |
EKK Eagle Industry Mexico S.A. de C.V. | Mexico | Equipment to produce special valves | 1,161 | Apr. 2014 |
Mar. 2015 |
EKK Eagle (Thailand) Co., Ltd. | Thailand | Equipment to produce mechanical seals | 772 | Apr. 2014 |
Mar. 2015 |
Equipment to produce special valves | |||||
Eagle Industry (Wuxi) Co., Ltd. | China | Equipment to produce mechanical seals | 614 | Apr. 2014 |
Mar. 2015 |
Equipment to produce special valves | |||||
NEK Co., Ltd. | Korea | Equipment to produce mechanical seals | 350 | Apr. 2014 |
Mar. 2015 |
P.T. Eagle Industry Indonesia | Indonesia | Equipment to produce mechanical seals | 326 | Apr. 2014 |
Mar. 2015 |
Equipment to produce special valves |