JECO CO., LTD. Business Report FY2006

Business Highlights

Financial Overview
In million JPY FY2006 FY2005 Increases
Sales 24,295 21,976 10.6% - Sales of air-conditioner panels, accessory meters, motors for electronic throttles, and current sensors increased, although the sales of the motors for ABSs and combination meters decreased. In the end, however, overall sales increased.
Operating income 1,268 1,064 19.2% ツキOperating income increased as a result of the Company's efforts to reduce costs and boost productivity.
Ordinary income 1,171 1,007 16.2%
Current net income 621 640 (2.9)%
Sales by product
Indicator related products 14,597 12,664 15.3% -Sales of combination meters decreased due to fewer vehicle models being equipped with the products .
ツキThe number of vehicles being equipped with automobile clocks as a single unit is on the decrease because more clocks are being built into systems. However, the Company launched production of single-unit clocks for vehicles at Dongguan Jeco Co., Ltd. in China, and started delivering them to automakers. As a result, the sales of the automotive clocks increased slightly.
-Sales of display system products increased significantly because the number of vehicles equipped with accessory meters increased. Sales of air-conditioner panels rose, as they are increasingly being used. Collaboration with partners was strengthened as well.
Motor related products 6,933 6,807 1.8% - Sales in this sector increased because sales of motors for electronic throttles increased substantially, as a result of an increase in the numbers of vehicle models being equipped with these motors. This was in spite of a decrease in sales of motors for ABSs.
Other automotive products 2,764 2,504 10.4%

- Sales of current sensors increased because the number of vehicles being equipped with the sensors increased significantly.

Challenges for FY2007
- The Company will support its existing facilities in The Philippines at Jeco Autoparts Philippines, Inc.; and in China at Dongguan Jeco Co., Ltd., which was established in FY 2005, so that they can both become profitable on their own.


R&D expenses in FY2006 totaled 612million JPY (2.5% of total sales).

- R&D was mainly conducted to develop technology in order to gain a competitive edge in the area of automotive clocks, display system products such as air-conditioner panels, and sensors.

Investment Activities

Capital Investment
A capital investment of 2,096 million JPY in FY 2006 was made mainly to develop products at its automobile parts business for new-vehicle models.

New facility
Type of facility Planned investment amount
(million JPY)
Start Finish Production capacity increase on completion
Jeco Co., Ltd.

(Saitama Pref., Japan)
Automobile parts assembly facility 1,914 2006.10 2008.03 Slight increase
Dies and tools 381 2006.10 2008.03 Slight increase
Facility except production facility 620 2006.10 2008.03 Slight increase
Nagano Jeco Co., Ltd.
(Nagano Pref., Japan)
Automobile parts assembly facility 239 2006.10 2008.03 Slight increase