Topy Industries Business Report FY2008
Business Highlights
Financial overview
Highlights for FY2008
Nippon Steel Corporation and The Company announced on September 30 2008 that they will form a comprehensive alliance which includes business and capital tie-ups. Nippon Steel, which has been the largest shareholder of Topy, will increase its shareholding ratio from 7.5% to 20% to make Topy its equity method affiliate. Under the new alliance, the two companies will promote joint use of steel-making facilities such as electric furnace and casting facilities, transition to in-house production of billets at Topy Industries, and expansion of integrated subcontracted work, from Nippon Steel to Topy Industries, from steel-making to rolling of section steel. While Nippon Steel and Topy have been working closely in supplying and processing steel products, they will deepen their partnership to respond to fluctuations in demand for steel as well as to enhance competitive edge. (From an article in the Nikkan Jidosha Shimbun on Oct.1 2008)
| (in million JPY) |
FY2008 | FY2007 | Rate of change |
Main factors |
| Overall | ||||
| Sales | 290,333 | 296,629 | (2.1%) | Sales and profit decreased as a result of soaring material prices in Japan, the slowdown of the US economy in the first half, and the weak real economy and depressed global economic environment due to the global financial crisis in the second half. |
| Operating income | 6,686 | 12,888 | (48.1%) | |
| Ordinary income | 6,010 | 11,784 | (49.0%) | |
| Current net income | 2,384 | 6,366 | (62.6%) | |
| Automotive/industrial component business | ||||
| Sales | 153,827 | 166,971 | (7.9%) | In the first half, sales were favorable for extra-large wheels used in mines and suspension components for construction machinery. Export for Europe and the Middle East supported the Company's performance. In the second half, sales decreased as a result of global demand decline and inventory adjustment. |
| Operating income | 3,059 | 10,833 | (71.8%) | |
Highlights for FY2008
Nippon Steel Corporation and The Company announced on September 30 2008 that they will form a comprehensive alliance which includes business and capital tie-ups. Nippon Steel, which has been the largest shareholder of Topy, will increase its shareholding ratio from 7.5% to 20% to make Topy its equity method affiliate. Under the new alliance, the two companies will promote joint use of steel-making facilities such as electric furnace and casting facilities, transition to in-house production of billets at Topy Industries, and expansion of integrated subcontracted work, from Nippon Steel to Topy Industries, from steel-making to rolling of section steel. While Nippon Steel and Topy have been working closely in supplying and processing steel products, they will deepen their partnership to respond to fluctuations in demand for steel as well as to enhance competitive edge. (From an article in the Nikkan Jidosha Shimbun on Oct.1 2008)
R&D
| R&D Expenses | (in million JPY) |
| FY2008 | FY2007 | FY2006 | |
| Group | 1,649 | 1,576 | 1,999 |
| Automotive
& Industrial Machinery Components |
926 | 991 | 1,281 |
Automotive & Industrial Machinery Components
The Company conducted research on solutions that reduce weight, improve quality, cut costs, and reduce development lead time. It also did research and development on new products.
The Company achieved favorable results for its mainstay products, namely automotive steel and aluminum wheels, in terms of improving the accuracy of technology to conduct analysis and evaluations, developing and mass-producing new products, cutting costs, and improving the quality of existing products.