SHOWA CORPORATION Business report FY2008
|Financial overview||( in millions of JPY )|
|-||FY2008||FY2007||R. C. (%)||Factors|
|Sales||271,510||283,370||(4.2)||Sale decreased resulting from the decreased production of customers due to global recession and the impact of foreign exchange fluctuation.|
|Operating income||2,409||13,663||(82.4)||The revenues decreased due to the decreased materials prices, the impact of foreign exchange fluctuation, the increased production and increased cost to supply new models in the first half, and the impact of decreased production in the second half.|
|Current net income||(11,609)||6,597||-|
- Revenues decreased due to shrinking of the automotive market and decreased export.
- While there was some impact due to shrinking of the automotive market, revenues increased thanks to the effects of a new model launch and sales promotion. However, the yen-equivalent revenue decreased due to the impact of foreign exchange translation.
- Revenues decreased due to amendment of purchased parts prices and decreased sales of suspension subassembly, resulting from a decrease in sales.
- While revenues increased thanks to increased sales of automotive parts due to the introduction of new models, the yen-equivalent revenues decreased because of foreign currency translation.
South East Asia
- Revenues increased thanks to increased sales of automotive parts, such as drive system parts, supported by strong customers sales.
- The revenues increased thanks to the increased sales of automotive parts supported by strong customers sales.
- Supported by a strong automotive market and driven by the positive effects of its customer's new model launch, sales figures increased with increased sales of automotive shock absorbers and power steering.
|R&D Expenditure||( in millions of JPY )|
Automobile parts business:
- The Company improved the competitive edge of its existing products by reducing cost through specification amendment and other measures.
- The Company enhanced its research and development capabilities, including an evaluation of conformity to material requirements that supports local procurement of materials from a technical point of view.
|Capital Expenditure||( in millions of JPY )|
-The Company focused on improvement, streamlining and update of production facilities including construction of a new plant at Gotenba.
< New facilities >
-The total amount of capital investment planned for fiscal year 2008, which ended March, 2009, was 17,888 million yen. The following outlines major construction projects for new facilities.
|Location||Type of facility||Planned investment
|Construction start month||Planned completion|
|Saitama Plant||Gyoda City, Saitama, Japan||Production facilities for automobile parts||889||Apr., 2008||Jan,. 2010|
|Gotenba Plant||Gotenba, Shizuoka, Japan||Production facilities for automobile parts||9,024||Apr., 2008||Mar., 2010|
|Asaba Plant||Fukuroi, Shizuoka, Japan||Production facilities for automobile, motorcycle parts||801||Apr., 2008||Mar., 2010|
|American Showa, Inc.
|Ohio, USA||Production facilities for automobile, motorcycle parts||1,324||June, 2008||Dec., 2009|