F-tech Inc. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) | Factors | |
Sales | 122,129 | 142,882 | (14.5) | -Honda Motor Co., Ltd., the Company's main customer, enjoyed brisk sales in emerging countries including China. -Even though sales decreased, business profit increased because the Company achieved cost reductions and expenditure cuts as a result rationalizing its operations. |
Operating income | 5,365 | 2,754 | 94.8 | |
Ordinary income | 4,851 | 1,434 | 238.3 | |
Net income | 2,457 | (4,316) | - |
Performance by Region
-Since sales to Honda Motor Co., Ltd., the Company's main customer, decreased, the total sales in Japan was 42,034 million yen, a decline of 25.4% compared to sales in the previous fiscal year. As a result, the Company posted an operating loss of 109 million yen.-Since sales to Honda Motor Co., Ltd., the Company's main customer, decreased due to the slowdown in spending, the total sales in North America was 54,953 million yen, a decline of 13.2% compared to sales in the previous fiscal year. Operating income was 1,996 million yen, a 35.6% decrease compared to that of the previous fiscal year.
-Thanks to brisk sales in Asia, mainly in China, sales increased by 8.3% compared to those of the previous fiscal year ,to 25,141 million yen. Operating income was 2,807 million yen, a 18.4% year-on-year increase.
Restructuring
-The Company announced on January 19, 2010 integration of its operations in both the U.S. and Canada. Specifically, F&P America Manufacturing, Inc. (FPA) in Ohio, U.S.A., will absorb F&P Georgia Manufacturing, Inc. (FPG) and F-tech North America Inc. (FTNA), while FPG and FTNA will be liquidated. In Canada, DYNA-MIG Mfg. of Stratford Inc. (DYNA-MIG) will be merged into F&P Manufacturing Inc. (FPC), which will be a surviving company. (From an article in the Nikkan Jidosha Shimbun on Jan. 20, 2010)-The Company announced its plan to consolidate its two wholly-owned subsidiaries for metal molds and plastic injection molds as of Oct. 1, 2009. Fukuda Engineering Co., Ltd., Kisai-machi, Saitama Pref., for die designing and Watanabe Plastics Mfg. Co., Ltd., Kasukabe, Saitama Pref., for plastic injection molding, will be merged with Fukuda Engineering as a surviving company. .(From an article in the Nikkan Jidosha Shimbun on Aug. 10, 2009)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 1,495 | 1,940 | 1,924 |
R&D Structure
-Haga Technical Center is in charge of product design and development, research on materials and product performance tests.-In July 2008, the Company established F-Tech R&D Philippines, Inc. in the Philippines. It cooperates with the Company's production base in the Philippines so that the company has a consistent system to locally develop and produce pedals.
R&D Achievements
-The Company supplied a new H-type rear axle beam to the Honda Insight and CR-Z. It was developed based on the H-type rear axle beam installed on the Honda Fit. The performance of this newer H-type rear axle beamwas improved.Major Technological Support
(As of Mar. 31, 2010)
Partners | Country | Type of Support | Contract Period |
Cheng Yu Industry Co., Ltd. | Taiwan | Technical support dealing with manufacturing and sales | Dec.1994-Dec.1999 Yearly automatic renewal from then on |
ThyssenKrupp Automotive Tallent Ltd. | UK | Technical support dealing with manufacturing and sales | June 1996-June 2009 Yearly automatic renewal from then on |
Progressive Tools & Components (P) Ltd. | India | Technical support dealing with manufacturing and sales | Nov.1996- now under way |
YPS Limited | Turkey | Technical support dealing with manufacturing and sales | Apr. 1, 2000- Mar. 31, 2005 Annual automatic renewal from then on |
Vietnam Autoparts Co., Ltd. | Vietnam | Technical support dealing with manufacturing and sales | Dec. 27, 2005- Dec. 26, 2010 |
SMC Co. Ltd. | South Korea | Technical support dealing with manufacturing and sales | Apr. 4, 2006 Apr. 3, 2011 (Annual automatic renewal from then on) |
Thyssenkrupp Automotive Systems Brasil Ltda | Brasil | Technical support dealing with manufacturing and sales | Sep. 27, 2005- Sep. 26, 2012 |
Technological Support the Company Receives
(As of Mar. 31, 2010)
Partners | Country | Company name | Type of support | Details | Contract period |
F-Tech F&P Mfg Inc. F&P America Mfg Inc. |
UK | TI Corporate Services Limited(Variform, Inc.) | Automotive components | Technological support dealing with pipe forming | Oct. 20, 1994- Oct. 20, 2023 |
Investment Activities
Investment Expenditure |
(in millions of JPY) |
FY2010 | FY2008 | FY2007 | |
Investment Expenditure | 3,177 | 12,247 | 14,719 |
Investment for new product start-up | 1,540 | 4,474 | 9,593 |
Planned Capital Investments
Company Name Location |
Segment | Planned investment (in million yen) |
Start | Completion | Increased capacity after completion |
F-Tech: Kuki Plant, etc. (Saitama, Japan) |
Businesses related to automotive components | 829 | Apr. 2010 |
Mar. 2011 |
Facility expansion in line with launch of a new model |
F-Tech: Kameyama Plant, etc. (Mie, Japan) |
Businesses related to automotive components | 1,053 | Apr. 2010 |
Mar. 2011 |
Facility expansion in line with launch of a new model |
F-Tech Mfg. Thailand Ltd. (Ayutthaya, Thailand) |
Businesses related to automotive components | 822 | Jan. 2010 |
Dec. 2010 |
Facility expansion in line with launch of a new model |