F.C.C. CO., LTD. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 96,943 133,747 (20.1) -Sales and income decreased due to slowdowns in orders, triggered by the global economic crisis; and to further appreciation of the yen against other currencies.
Operating income 5,566 14,594 (31.1)
Ordinary income 6,075 15,289 (22.8)
Net income 2,250 4,876 (42.0)
Vehicle Clutch Division
Sales  42,159 53,632 (8.9) -Sales decreased in response to production cuts by the Company's major customers in Japan and North America, and due to negative currency translation. Nevertheless, income increased, thanks to increased sales to Ford and China.
Operating income 197 3,219 -

Recent Development by Region

Automotive Clutch Division
-Sales and income decreased mainly because of lower demand for automobiles.

<North America>
-Sales decreased because of slowdowns in automotive sales, triggered by the economic downturn; and because of negative currency translation. Nevertheless, income improved, thanks to increased sales of AT clutches to Ford.
-Although sales of automotive clutches in China increased, the Company suffered a decline in yearly orders and negative currency translation. On the whole, both sales and income decreased.


-The Company announced on July 28, 2009 that it will dissolve FCC (Europe) Ltd. in Milton Keynes, U.K., which manufactures and sells clutches for motorcycles and automobiles. Some of the major factors behind the closedown include the slowing demand in Europe and moves by its large customers to transfer their production operations to Southeast Asia. (From an article in the Nikkan Jidosha Shimbun on July 29, 2009)

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


R&D Structure

-The Company has a Technology Laboratory and Production Technology Center in Hamamatsu, Shizuoka Prefecture.

R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 2,807 3,253 3,316

Automobile clutches

1,474 1,779 1,816

R&D Activities

-The company plans to carry out R&D activities on clutches, developing them as component parts. Included are activities, starting from basic research through to manufacturing technology on friction materials for two- and four-wheel vehicles and for general purpose machines.
-The Company will develop new products by leveraging the technology it has accumulated over the years through manufacturing clutches and friction materials, and through improving existing products.
-The Company, working on consignment under the Japan Science and Technology Agency, is conducting joint research activities with Kyushu University in the field of paper catalysts, developing "porous fiber catalytic sheets". It is also developing "emission purification paper catalysts" in which paper catalyst technology is being applied.

Automobile clutches
-The Companydeveloped clutches thatrender vehicles more compact, lower in cost, fuelefficient, and lighter in weight by utilizing wet friction materials inautomatic transmissions such as CVTs and dryfriction materialsin manual transmissions.

Major Achievements

-Mass-production of multi-plate, lock-up clutches; and transmission clutches, forFWD vehicles designed under a newarchitecture for multi-plate automatictransmissions.
-Producing clutches for center differentials and limited slip differentials.
-Installation of manual clutches(designed for new hybrid vehicles)in new vehicles models.

Investment Activities

Capital Investment

-Capital investment in FY2009 was 4,283 million yen.

New Facilities

Business segment Type of facility Planned total investment
(million yen)
Start Planned completion
F.C.C Co., Ltd
Ryuyo Plant
(Shizuoka, Japan)
Motorcycle clutches
Automobile clutches
Production facility for clutches 212 2010.04 2011.03
Hamakita Plant
(Shizuoka, Japan)
Automobile clutches Production facility for clutches 141 2010.04 2011.03
Suzuka Plant
(Mie, Japan)
Motorcycle clutches
Automobile clutches
Building, production facility for clutches 75 2010.04 2011.03
Technology Research Center
(Shizuoka, Japan)
R&D Testers and measuring instruments 150 2010.04 2011.03
PT.FCC Indonesia
(Karawang, Indonesia)
Motorcycle clutches
Automobile clutches
Production facility for clutches 953 2010.04 2011.03
FCC Adams , LLC.(Indiana, USA) Automobile clutches Building, Production facility for clutches 895 2010.04 2011.03
FCC (Indiana) Mfg., L.L.C.
(Indiana, USA)
Automobile clutches Production facility for clutches 699 2010.04 2011.03
FCC Rico, Ltd. (Haryana, India) Motorcycle clutches
Automobile clutches
Building, Production facility for clutches 562 2010.01 2010.12