Keihin Corporation Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of Change
|Operating income||21.598||13,716||57.5||-In spite of negative currency translation (because of the higher valuation of the yen) and higher R&D expenses, the Company posted higher income year-on-year as a result of greater sales volumes and initiatives that successfully rationalized operations and reorganized the Company’s business structure.|
|Current net income||12,324||7,633||61.5||-In spite of incurring a loss due to the Great East Japan Earthquake, current net income increased as a result of recording negative goodwill.|
Highlights by Region
-In spite of the effects on sales of products designed for four-wheel vehicles in Japan due to the Great East Japan Earthquake, sales of products destined for North America, Europe, and Asia increased.
-Sales of products for two-wheel vehicles and sales of general-purpose products, especially those destined for Asia, increased. Sales were 146.4 billion yen.
-In spite of negative currency translation, the Company posted increased sales due to favorable sales of products designed for four-wheel vehicles as a result of the market recovery in North America.
- In Brazil and other countries, sales of products for two-wheel vehicles and sales of general-purpose products increased.
-Sales were 73 billion, 72 million yen.
-Sales of four-wheel vehicles in Thailand increased.
-In Thailand, Indonesia, India and Taiwan, sales of products for two-wheel vehicles and sales of general-purpose products increased.
-Sales were 80 billion, 656 million yen.
-In spite of negative currency translation, the Company posted increased sales due to favorable sales of products designed for four-wheel vehicles, thanks to the continued, strong growth in the Chinese market.
-Sales were 34 billion, 147 million yen.
- In spite of negative currency translation, the Company posted increased sales because the end came to inventory adjustments that were needed because of the significant decrease in production volume that occurred last year.
-Sales were 5 billion, 792 million yen.
-Keihin Corporation announced on June 6 that it has reached a final agreement with Showa Denko K.K. about Keihin’s acquiring the automotive heat exchanger business of Showa Denko. The project includes the aluminum evaporator and other heat exchanger products in the automotive climate control systems, but it does not involve the aluminum cylinder business for laser printers and other technologies. In 2013, the Company will make a new company which will be a fully owned subsidiary. (From an article in the Nikkan Jidosha Shimbun on June 7, 2011)
|(in millions of JPY)|
|Tochigi R&D Center
(Takanezawa Town, Tochigi Pref., Japan)
|-With system development being a key focus , the Tochigi R&D Center conducts all R&D activities, from developing and inspecting software, to conducting research and analysis using actual vehicles.
-As the main facility conducting system development, the Tochigi R&D Center focuses on expanding R&D areas based on systemization and integration as well as developing advanced technologies mainly for electronic control units (ECUs).
|Kakuda R&D Center
(Kakuda City, Miyagi Pref., Japan)
|-The Kakuda R&D Center, in aiming to develop core products that support systems, pursues performance, functionality, durability, and economy, which are elements that form the foundations to improving quality; and at the same time, it links these elements to production technology.
-It consists of an analysis building, which analyzes data; a durability building, which conducts vibration tests and measures heat resistance; and a chassis building, which uses actual motorcycles and vehicles to evaluate products in terms of their value as system components.
R&D ActivitiesFour wheel vehicle business
The Company developed and commercialized
-Parts for engine fuel supply systems and transmission hydraulic control systems
-Systems that are compatible with alternative fuels
-High-performance small air-conditioning systems
-Electronic engine control units
-Control units for hybrid cars and power modules for driving a motor
-Keihin Corp. plans to develop a low-priced automotive fuel injection system targeted to emerging nations. By specializing in products designed for manual transmissions, which account for a high percentage of transmissions equipped on vehicles in emerging nations, the Company hopes to reap cost-reduction benefits. The Company intends to increase its market share by enhancing its product range targeted to emerging nations. (From an article in the Nikkan Jidosha Shimbun on December 21, 2010)
|(in millions of JPY)|
Breakdown of capital investment costs in facilities and equipment:
-Production: 7 billion, 142 million yen; R&D: 970 million; Others (including intangible assets) 4 billion, 404million yen.
Breakdown of capital investment costs by region:
Investments in New Production Facilities
|Segments||Planned Amount of Investment (in million yen)|