SUNCALL CORPORATION Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
FY2007 FY2006 Rate of Change (%) Factors
Sales 37,218 36,319 2.5 -Sales increased, as the Company maintained a high rate of capacity utilization throughout the year for its mainstay auto parts products such as valve springs for automotive engines and ring gears.
Operating income 3,552 3,099 14.6 -Operating income increased due to increased revenue and a reduction in initial costs such as expenses incurred for outsourcing.
Ordinary income 3,410 3,295 3.5 -
Net income 1,841 1,807 1.9 -
Functional precision materials division
Sales 4,258 4,032 5.6 -Sales increased, thanks to the high volume of high-strength, high-tensile steel exported for use in valve springs equipped on automotive engines; as well as to strong sales of precision structure materials for automotive transmissions.
Functional precision components division
Sales 20613 18,874 9.2 -Supported by strong automobile production, sales of the following parts steadily increased: valve springs for automotive engines, ring gears for starters, and retractor spiral springs for seat belts.


R&D Expenditure
-R&D costs in FY2007 totaled 828 million yen.

Major R&D Achievements
Hybrid-vehicle components
-Looking at the future of the hybrid vehicle market, the Company is working on developing products such as motors for EVs and peripheral devices for inverters 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.

Functional precision materials/components
-To comply with the requirement of the new fuel economy regulations that will take effect in 2015, i.e., a 23.5 % improvement in fuel economy compared to actual fuel economy in 2004), higher performance and better fuel economy are becoming necessary. Also, demand is growing greater for smaller and lighter products. Under these circumstances, the Company started to develop springs, and wires for springs, that use new materials that are stronger than conventional materials in order to improve durability in response to the demand for improving product-life and the springs' coiling properties.

Investment Activities

Capital Expenditure
The Company invested 3,229 million yen in FY2007.
-The Company invested mainly to prepare production lines for new products, enhance its production capacity, and improve quality and productivity.

By division
Functional precision materials division
-Focusing on improving the quality of materials used for valve springs and precision shaped materials, the Company invested 2,089 million yen.

Functional precision components division
-Focusing on preparing production lines to produce new automotive products, increase production capacity, enhance the quality of automatic-transmission components, and improve the productivity of valve springs for engines, the Company invested 2,364 million yen.

New Facilities (Functional Precision Components division)
Company or Office Name
Facilities Expected Investment (thousand yen) Started Complete
Toyota Plant
(Aichi Pref., Japan)
Manufacturing equipment 204,000 2008.06 2009.03
Manufacturing equipment 55,000 2008.08 2009.01
Hirose Technology
(Aichi Pref., Japan)
Manufacturing equipment 102000 2008.04 2008.08
Suncall Engineering
(Yamanashi Pref., Japan)
Manufacturing equipment 41,500 2008.06 2008.11
Suncall Kikuchi
(Kumamoto Pref., Japan)
Manufacturing equipment 88,500 2008.06 2008.12
Suncall America Inc.
(Indiana, USA)
Manufacturing equipment 110,560 2008.02 2008.06
Sancall (Guangzhou) Co.,Ltd.
(Guangzhou City, China)
Manufacturing equipment 60,660 2008.03 2008.06
Increased capacity after completion (at all the facilities above): improvement in quality and productivity