F.C.C. Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(IFRS, in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Overall | ||||
| Revenue | 173,174 | 157,217 | 10.1 | -Revenue increased due to higher sales of motorcycle clutches in India and automobile clutches for Ford and in China. |
| Operating income | 14,052 | 11,236 | 25.1 | -Despite an overall increase in operating income, operating income of automobile clutches fell due to impairment loss of automobile clutch business in Japan and an increase in costs in Mexico. |
| Current income before income taxes | 14,083 | 11,419 | 23.3 | - |
| Profit for the year attributable to owners of the parent | 9,691 | 7,204 | 34.5 | - |
Business Development outside Japan
-The Company announced that it has made FCC (Thailand) Co., Ltd., its joint venture for clutch parts production in Thailand, a wholly owned subsidiary. The company acquired the 39% stake in the joint venture owned by HSH Co., Ltd. and the 3% stake owned by Thai Suzuki Motor Co., Ltd. Through the acquisition, the company is aiming to expand its business by speeding up decision making and strengthening collaboration among group companies. (From an article in the Nikkan Jidosha Shimbun on March 30, 2017)
ｰU.S. light truck market performed well.
At the end of March 2018, the Company is increasing the production volume of clutches for ten-speed automatic transmissions for Ford and GM.
The Company is strengthening development capabilities of friction materials and electric transmissions.
Contracts
The company announced that it has started the mass-production of clutch discs for Hyundai Motor's vehicles. These parts are for use in CVT transmissions and for medium capacity 8-speed automatic transmissions for FWD. F.C.C. manufactures the clutch discs at its Watagashima Factory (Shizuoka Prefecture, Japan) and supplies them to Seojin Automotive based in Gyeonggi-do, Korea. Seojin Automotive then assembles clutches and delivers them to Hyundai Powertec. Sales of the clutch discs for CVT transmissions is expected to reach approximately JPY 500 million by the fiscal year 2020, and that for FF8AT approximately JPY 300 million. (From a press release on June 26, 2018)
The company announced that it has received a new order from Hyundai WIA to supply clutch discs for electric AWD system. F.C.C. manufactures the clutch discs at its Watagashima Factory (Shizuoka Prefecture, Japan), Hamakita Factory (Shizuoka Prefecture), and Suzuka Factory (Mie Prefecture) and supplies them to Seojin Automotive based in Gyeonggi-do, Korea. Seojin Automotive then assembles clutches and delivers them to Hyundai WIA’s facility in Changwon, Korea. Mass production started in March 2017. Sales of the clutch discs is expected to reach approximately JPY 40 million by the fiscal year ending March 2019. (From a press release on November 10, 2017)
10th Mid-term Management Plan (FY ending in March 2018-FY ending in March 2020)
ｰThe target of operating income for the second year in the mid-term management plan was achieved at the end of the first year (FY ended March 2018). The performance targets were revised upward.
Operating income for FY 2017 reached JPY 14 billion, exceeding the initial target of JPY 10.2 billion.
Based on this, the targets of operating income were revised to JPY 14.5 billion for FY 2018 and to JPY 16.5 billion for FY 2019.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 4,052 | 3,713 | 3,417 |
| -Automobile clutches | 2,200 | 2,206 | 2,050 |
R&D Structure
-The Company has a Technology Laboratory and Production Technology Center in Hamamatsu City, Shizuoka Prefecture.
R&D Activities
Automobile clutches
-Focusing on wet friction materials for automatic transmissions (including CVTs) and dry friction materials for manual transmissions, the Company is conducting R&D activities on clutches to downsize them, reduce their costs, and have contribute more to improve fuel efficiency.
-The Company is making product proposals on its proprietary segment-type friction-plate production technology. It also launched commercial production of clutch assemblies for automatic transmissions, in which its proprietary technology is used to reduce their weight and improve fuel efficiency.
-The Company developed a lock-up clutch with a newly designed damper that excels in damping performance.
-The Company developed a new friction material that enhances product appeal and reliability.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Motorcycle clutches | 3,863 | 2,856 | 3,472 |
| Automobile clutches | 10,526 | 11,942 | 13,278 |
| Company-wide (all functions) | 625 | 569 | 414 |
| Total | 15,014 | 15,367 | 17,164 |
The company has chosen one of its two North Carolina facilities for an USD 800,000 expansion. The company decided to expand capability in its plant located in Scotland County, North Carolina over other facilities it operates in Indiana and San Luis Potosi, Mexico. The annual payroll impact is expected to be nearly USD 780,000 to the local economy, according to an announcement from the state, which is offering a performance-based grant of USD 90,000 from the One North Carolina Fund. (From a Mexico-Now article on July 5, 2017)
Planned Capital Investment
|
(As of Mar. 31, 2018) |
-In the fiscal year that ends in March 2019 the Company plans to spend JPY 11,305 million in capital investments, allotting JPY 6,886 million to automotive clutches.
-The Company plans to invest in order to cutover to new models and increase production capacity in North America and Japan and increase production capacity in India.