Suncall Corporation Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change (%) Factors
Sales 30,658 33,089 (7.3) -
Operating income 1,725 2,606 (33.8) -
Ordinary income 1,864 2,471 (24.6) -
Net income 968 1,428 (32.2) -
Functional precision materials division
Sales 3,918 3,601 8.8 -Even though the Great East Japan Earthquake and the flooding in Thailand caused a drop in demand for valve spring materials destined for sale within the Group, operating revenue rose year-on-year because of the rebound in export volume.
Functional precision components division
Sales 16,814 18,203 (7.6) -Performance decreased year-on-year because of lower demand caused by the Great East Japan Earthquake and the flooding in Thailand.

Outlook for FY ending Mar 31, 2013

(in millions JPY)
  FY ending Mar 31, 2013
FY ended Mar. 31, 2012
Rate of Change
Sales 33,500 30,658 9.3
Operating income 2,900 1,725 68.1
Ordinary income 2,800 1,864 50.2
Net income 1,800 968 86.0

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Business Strategy

<Expanding the functional precision materials business>
  • Develop materials that improve fuel efficiency.
  • Develop high-strength materials designed to work in compact and light-weight engines.
  • Develop even lower priced products by combining precision forming technology with the newly developed high-speed stamping technology.
  • Develop and maintain strong production and logistics operations that enable the Company to win more business from customers around the world.
<Expanding the functional precision components business>
  • Develop products that meet customer demand for less weight and further compactness
  • Develop products for HVs and EVs by combining precision forming technology with the newly developed insulating film technology 
  • Produce products by making maximum use of the most appropriate production facilities worldwide, namely the five producing valve springs and the four producing ring-gears.


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 703  523 441

R&D Activities

1) R&D Group (Japan)
Development of a terminal bus bar for PHVs
-The Company developed a process that freely forms flat wires and thus greatly reduces mechanical loss when, compared to traditional stamping processes. Furthermore, the Company, by developing insulating coating technology, was able to develop a terminal bus bar that no longer needs a plastic insulating cover. The Company plans to launch commercial production of this bus bar in the second half of fiscal year 2012.

2) Functional Precision Materials (Japan)
Development of material for an irregular shaped 3-bead valve cotter
-Aiming to control uneven wear on valves used in automotive engines, the Company developed a 3-bead valve-cotter material, changing it from the 1-bead shaped valve cotter conventionally used. By taking advantage of its expertise gained over the years in technology capable of forming irregular-shaped materials, the Company developed technology in irregularly shaped die designs and wire-drawings. The Company has been awarded supply agreements for this new material from OEMs based outside Japan because, when compared to conventional production methods, this new production method drastically reduces costs and creates extremely precise dimensions. The Company plans to start commercial production from the 2012 fiscal year.

3) Functional Precision Components (Japan)
Development of a high-strength spring for automatic transmissions.
-The Company started mass-producing an ultra-high-strength spring for next-generation vehicle models. These springs are designed to improve fatigue strength by 7% compared to the conventional springs that the Company has thus far been developing. As a result, this latest spring reduces fuel consumption based on an improvement in its special features that make it more compact and lighter in weight.

Development of a coil-spring for a new type of variable valve timing
-In conducting R&D activities on products for new variable valve timing for next-generation engines, the Company developed a coil-spring that uses irregularly shaped section material that boasts the same high level of quality as a valve spring. The Company, in aiming to mass-produce this coil-spring in fiscal year 2014, is working on evaluation to bring it to the development stage.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
-Functional precision materials (Japan) 340 221 -
Functional precision materials Total 340  221 -
-Functional precision components (Japan) 586 715 -
-Functional precision components (USA) 88 26 -
-Functional precision components (Asia) 52 82 -
Functional precision components Total 726  823 385
Other 580 1,211 792
Total 1,646  2,255 1,177

-The company's main investment activities were for increasing its production volumes, improving productivity, reducing costs, raising product quality, and enhancing the environmental responsiveness of its products.

Functional precision materials
-The Company invested primarily in improvement of productivity of valve spring materials, precise deformed materials and quality.

Functional precision components
-The Company invested mainly in projects which will contribute to reducing costs and improving the environmental responsiveness of its automotive components.

-The Company plans to spend 3,000 million yen for facilities and equipment in the 2012 fiscal year, investing at its Group companies overseas so as to start new production of mainly automotive parts; as well as investing to increase production volume and rationalize operations in general.

Planned Capital Investments  (Functional Precision Components Division)

(As of Mar. 31, 2012)
Company or Office Name Facilities Expected Investment
(in millions of JPY)
Project period
From To
The Company
(Kyoto, Japan)
Manufacturing facility
(Functional precision materials division)
370 Apr.
Suncall America Inc.
(Indiana, USA)
Manufacturing facility
(Functional precision materials division)
232 Jan.
Suncall (Guangzhou) Co., Ltd
(Guangzhou, China)
Manufacturing facility
(Functional precision materials division)
113 Jan.