SNT CORPORATION Business report FY2007

Business Highlights

Financial overview

(In millions JPY)

FY2007 FY2006 Rate of
Change (%)
Sales 20,994 19,208 9.3 Sales increased as a result of receiving steady orders supported by good demand in automotive and construction machinery related industries.
Operating income 2,231 1,899 17.5 -
Ordinary income 3,169 2,647 19.7
Net income 1,710 1,817 (5.9)
Forged products business
Sales 17,167 15,005 14.4 see note 1) below
Operating income 2,402 1,827 31.5 see note 2) below

1)Sales in the forged products business increased. Outside Japan, Siam Metal Technology Co., Ltd. (SMT) of Thailand recorded a 24.0% sales increase, amounting to 6,329 million yen. In Japan, Chubu Tanko Co., Ltd. located in Shinshiro city, Aichi prefecture, and the Takahagi forging plant in Takahagi city, Ibaraki prefecture, also recorded increases in both sales and profit.

2) Although revenue increased, the Company was too late in passing price hikes to customers for special steel, which is a main material of the Company's products, and also for sub materials. In addition, a significant increase in materials prices was expected. These two factors put pressures on sales performance.

Investment Activities

Investment Expenditure
(in millions of JPY) FY2007 FY2006 FY2005
Overall 1,488 1,157 866
Forged products business 1,125 990 711
Forged products business: Major investments include high-speed processing machines for die machining at Takahagi forging plant; and equipment for the new upsetter line at Siam Metal Technology Co., Ltd. in Thailand.

New Facilities (in millions of JPY)
Company Name Type of facility Planned
Construction start Planned completion Production Capacity after completion
Siam Metal Technology Co., Ltd.
(Rayong, Thailand)
3,000-ton forging press 694 2008.1 2008.6 Max 700T/Monthly
(based on the stamping weight)