SUNCALL CORPORATION Business report FY2006

Business Highlights

Financial overview
In million JPY FY2006 FY2005 Rate of Change (%) Factors
Sales 36,319 32,195 12.8 - Sales increased, as the Company maintained a high rate of capacity utilization for auto parts throughout the year.
- In addition, sales of HDD suspensions grew.
Operating income 3,099 3,047 1.7 -
Ordinary income 3,295 3,349 (1.6) - Ordinary income decreased due to initial expenses incurred before the Company's new overseas affiliate started operations. This was despite increased revenue overall and favorable foreign currency translation.
Net income 1,807


4.3 - Net income increased because the Company no longer needed to post an impairment loss, which the Company did in the previous year.
Functional precision components division
Sales 18,874 16,177


Sales of the following parts steadily increased: engine parts (valve springs and ring gears for starters), transmission parts (return springs, damper springs, and shaped rings), and safety parts (retractor spiral springs for seat belts and braking system parts).


R&D Expenditure
- R&D costs in FY2006 totaled 1,097million yen.

(Major R&D Achievements)
Motors for EVs and inverter peripheral products
Looking at the future of the hybrid vehicle market, the Company is working on developing products such as motors for EVs and inverter peripheral devices by leveraging technology in the field of insulating film processing, which is a new technology that the Company developed. This technology was developed based on precision plastic molding, one of the Company's core technologies. Moreover, as a theme on which to base new developments, the Company is working on developing products which can be used both as mechanical as well as functional components.

Piston-ring material and three-bead valve cotter material

By leveraging technology that is used for producing precision-made, irregular-shaped wires, the Company is improving the accuracy of irregular-shaped wires used in automotive parts, developing a method to process the wires in complicated shapes. The Company finished developing materials to be used for unpolished piston-rings and three-bead valve cotters for diesel power plants, commercializing these materials.

Investment Activities

Capital Expenditure
The Company invested 3,667million yen in FY2006.
-The Company invested mainly to enhance its production capacity, improve quality, and rationalize operations.

(Major achievements)
- Production facility for precision functional products:
To increase the production volume of valve springs and ring gears for cranking motors, improve the quality of its products, and optimize production operations for these, the Company invested 2,289 million yen.

New Facilities (Functional Precision Components division)
Company or Office Name
Facilities Expected Investment (thousand yen) Started Complete
Headquarters and Plant
(Kyoto, Japan)
Manufacturing equipment 357,900 2007.04 2008.03
Computer system, Buildings and structures
(company-wide common system)
362,580 2007.04 2008.03
Toyota Plant
(Aichi Pref., Japan)
Manufacturing equipment 804,000 2007.04 2008.03
Hirose Technology
(Aichi Pref., Japan)
Manufacturing equipment 244,800 2007.04 2008.03
Suncall Engineering
(Yamanashi Pref., Japan)
Manufacturing equipment 131,000 2007.04 2008.03
Suncall Kikuchi
(Kumamoto Pref., Japan)
Manufacturing equipment 121,900 2007.04 2008.03
Suncall America Inc.
(Indiana, USA)
Manufacturing equipment 415,580 2007.04 2008.03
Sancall High Precision (Thailand) Ltd.
(Chonburi, Thailand)
Manufacturing equipment 95,500 2007.04 2008.03
Increased capacity after completion (at all the facilities above): improvement in quality and productivity