IKUYO CO., LTD. Business report FY2006

Business Highlights

Financial overview
In million JPY FY2006 FY2005 Rate of Change (%) Factors
Sales 19,503 18,198 7.2 - Total sales increased due to the recovery in sales volumes which resulted from from its main customers launching new model vehicles.
Operating income (66) 291 - -Income decreased due to a sharp price rise in the cost of materials resulting from oil price hikes; increased distribution costs; closing costs connected with a syndicated loan; and other factors.
Ordinary income (399) 38 -
Current net income (670) (172) -
Automotive component business
Sales 18,823 17,195 9.5 -Sales increased due to the recovery in sales volumes which resulted from its main customers launching new model vehicles; as well as due to increased sales to new customers.
Operating income (131) 297 - - Income decreased due to slow improvements being made in the Company's productivity; and increases in indirect costs.

New Midterm Plan
(1) Plan to win new customers
-To augment facilities so as to respond to production increases at automotive makers in the Kanto, Chuo, and Northern Kyushu regions.

- The Company is currently focused on winning new customers based on two main strategies: reorganizing its operating structure and increasing its production capacity. The Atsugi factory, where the Company installed a large molding machine in FY2004, has been able to increase sales substantially based on business won from new customers in FY2005. In addition, the Company's facilities in Nagoya, Okayama, and Yamaguchi Hikari are also increasing their sales as a result of installing large molding machines.

(2) Procuring new business opportunities through new technology
-The Company in FY2005 is planning to commercialize resin parts (for houses as well as for automotive interior/exterior applications), which do not require coatings, enabling the Company to reduce volatile organic compounds in response to environmental issues.

(3) Action plans to reduce variable and fixed costs
- The Company will continue TCR activities and business rationalization initiatives to reduce total costs.


R&D expenses for FY2006were 16,375 thousand yen.

-At the product development stage, the Company's aim is to achieve a consistent level of quality and improve lowering costs and raising customer satisfaction. At the time of conducting design reviews and inputting design requirement information such as materials, molding methods, secondary fabrication, surface treatment and assembly, the Company also utilizes technology to predict performance based on CAE analysis as a means to efficiently develop its product.

-Main R&D Philosophy: to develop new technology on plastic-product surface coatings that are environmentally friendly and lead to cost reductions.

(1) By carrying out processes that are based on water transfer printing only instead of both water transfer printing plus surface coating, the Company will do its part to contribute to eliminating the use of harmful organic solvents and also eliminate the coating process itself that harms the environment. The Company is also engaged in doubling the level of hardness of surfaces and making improvements in terms of chemical resistance properties.

(2) Technology the Company developed not only molds articles together with either surface coatings or printed films without the need for any pre-forming, but also makes them into finished products at the same time. As a result, this reduced costs by eliminating the coating or plating process. The Company says it intends to find ways in which this technology can be further applied in various products in the area of lamination (simultaneous molding within dies) for which it has already finished developing door trims and pillars. The Company is currently producing prototypes with either coated or metallic finishes.

Introduction of technology (as of March 2007)



Items in Contract

Terms of Contract

Length of Contract

Idemitsu Petrochemical Co., Ltd.


Sales and manufacture of technology to produce hollow injection molding

Patent permission

From February 14, 1995 until expiration of the patent

Investment Activities

In FY2006, the Company made a capital investment of 2,029 million yen, mainly spent on the auto parts business.

- The total investment in the auto parts business was 2,019 million yen.
Out of the total amount, 1,207 million yen was invested into dies for new compact-cars and RVs.

Facility upgrades
Type of facility Planned investment (thousand JPY) Start Completion Capacity increase upon completion
Atsugi Factory
(Kanagawa, Japan)
Molding machinery and related equipment 205,021 2006.10 2007.05 Approx. 20,422 thousand yen/month
Nagoya Factory (Handa City
Aichi Pref.)
Molding machinery and related equipment
275,100 2006.10 2007.05 Approx. 24,785 thousand yen/month
Nagoya Factory (Handa City
Aichi Pref.)
Molding machinery and related equipment
171,070 2006.10 2007.08 Approx. 37,060 thousand yen/month
USi, Inc. (Tenessee, US) Dioxin heat treatment equipment 36,000 2007.01 2007.05 The project is mainly intended to make improvements in the area of environmental protection, and does not significantly affect the Company's production capacity.