Oiles Corp. Business Report FY2008

Business Highlights

Financial Overview (in millions of JPY)
FY2008 FY2007 Rate of
Change (%)
Factors
Overall
Sales 51,414 58,733 (12.5) -Sales and income decreased despite the Company's consistent efforts to reduce costs in all its divisions. These efforts included reducing production costs and amending product prices in response to rises in material prices.
Operating income 4,103 7,089 (42.1)
Ordinary income 3,915 7,302 (46.4)
Net income 1,640 4,294 (61.8)
Bearings business
Sales 30,937 37,308 (17.1) -Sales and income decreased, although the Company enhanced its activities to acquire new orders for automotive parts from Japanese and foreign automakers as well as to develop new uses for existing products.
Operating income 2,318 5,249 (55.8)

R&D

R&D Expenditure (in millions of JPY)
FY2008 FY2007 FY2006
Group 2,635 2,566 2,447
% of Sales 5.1% 4.4% 4.4%

-The number of people in charge of research and development is 166.

R&D Activities
-The Company developed a new-type strut bearing unit for automotive suspension equipment, achieving cost and weight reduction, component integration, improvement in steering operation feel, etc.

Investment Activities

Capital Investment (in millions of JPY)
FY2008 FY2007 FY2006
Group 3,049 3,130 2,500
Bearings business 2,387 2,243 2,216


New Facilities (Bearing-related)
Location Type of facility Planned amount
(in millions of JPY)
Construction
start
Planned
completion
Fujisawa office
Research facility etc.
Renewal of experimental and research facilities
Improving production capacity
720 Apr. 2009 Mar. 2010
Fujisawa office
Production facility for plastic bearings
Production facility renewal
Streamlining etc.
309 Nov. 2005 Mar. 2010
Fujisawa office
Production facility for metal bearings
Production facility renewal
Streamlining etc.
10 Apr. 2009 Mar. 2010
Yamato plant
Production facility for metal bearings
Production facility renewal
Streamlining etc.
48 Apr. 2009 Mar. 2010
Ohita plant
Production facility for metal bearings
Production facility renewal
Streamlining etc.
445 Dec. 2009 Mar. 2010
Shiga plant
Production facility for bearings etc.
Production facility renewal
Streamlining etc.
487 May,. 2007 Mar. 2010
UniPra Co., Ltd. Production facility renewal,
Streamlining etc.
408 Sep. 2008 Mar. 2010
Riko Kihara Co., Ltd. Production facility renewal,
Streamlining etc.
165

Apr. 2009

Oct. 2009
Oiles America Corporation Production facility renewal,
Streamlining etc.
142 Jan. 2009 Dec. 2009
Other subsidiaries Production facility renewal,
Streamlining etc.
253 Oct. 2008 Mar. 2010