FUKOKU CO., LTD. Business report FY2007
|Financial overview||(in millions of JPY)|
|FY2007||FY2006||Rate of Change (%)||Factors|
|Sales||56,405||51,848||8.8||-Sales increased, as the Company won orders mainly for anti-vibration parts.|
|Operating income||2,767||2,948||(6.2)||-Operating income was down due to the soaring prices of materials made of rubber and steel, coupled with a rise in sales and administrative expenses.|
|Ordinary income||2,565||3,082||(16.8)||-Ordinary income decreased as a result of negative currency translation and a rise in interest costs.|
|Current net income||1,551||1,778||(12.8)||-|
|Industrial rubber products|
-Sales of anti-vibration products were brisk, as the Company received orders from heavy-duty-truck and construction-machinery manufacturers. The Company also initiated marketing activities targeting carmakers. Increased orders for highly functional wiper- blade rubber also contributed to the increased sales.
-Operating income was down due to a steep rise in materials made of rubber and steel, coupled with a rise in sales and administrative expenses.
Major orders received during fiscal 2007 were:
|Isolation pulleys for small diesel engines||Passenger car makers in and outside Japan||Confirmed orders booked|
|Isolation pulleys for small gasoline engines||Passenger car makers in and outside Japan||Confirmed orders booked|
|Dumper pulleys for commercial vehicles||Manufacturers in Japan||Confirmed orders booked|
|Dumper pulleys for passenger cars||Manufacturers in and outside Japan||Commercial production started|
|Sealing products using fluorinated rubber compliant with antipollution regulations||Major parts makers in Japan||Confirmed orders booked|
|Sealing products for shock absorbers||Major parts makers in Japan||Commercial production started|
|Isolation pulleys for passenger vehicles||Asian production sites of U.S. carmakers||Confirmed orders booked|
|Dumper pulleys for passenger vehicles||Chinese carmakers||Confirmed orders booked|
|Diaphragm for boosters||Brake manufacturers in emerging markets||Commercial production started|
<Investments outside Japan>
-In fiscal 2007 the Company started operations at its Korat plant in Thailand. It has started to boost its production capacity for the future, purchasing a site for a new plant in Korea.
Licensor (As of March 2008)
|Rood (U.S.A.)||Design and manufacturing technology of torsion bushings and surface effects||From October 23, 2001 to October 23, 2011|
|C.F. Gomma S.p.A||Design and manufacturing technology for air springs||From July 2, 2003 to July 1, 2013|
Licensees (As of March 2008)
|Rood (U.S.A.)||manufacturing technology of viscous mounts||From October 23, 2001 to October 23, 2011|
|C.F. Gomma S.p.A. (Italy)||Manufacturing technology of CVJ boots||From December 1, 2002 to November 30, 2012|
-Capital investment in the Industrial Rubber Business was 3,671million yen, which the Company invested mainly to rationalize and computerize facilities.
Construction and remodeling plans (As of March 2008)
|Facility type|| Planned investment
(in million JPY)
|Construction Start||Planned completion||Expected increase in production capacity|
(Oura machi, Gunma, Japan)
|Production facility for anti-vibration products and rubber materials etc||653||2006.11||2009.03||A slight increase in the production volume of anti-vibration functional products|
|Gunma No. 2 Plant
(Chiyoda machi, Gunma, Japan)
|Production facility for wiper blade rubber and resin boots, experimental research facility, etc.||374||2006.06||2009.03||A six percent increase in the production capacity to make wiper-blade rubber|
|Sueyoshi Kogyo Co., Ltd.
(Kitaadachi-gun, Saitama, Japan)
|Production facility for metalworking sheet metal
||339||2008.01||2008.12||A 10 percent increase|
|Fukoku Korea Ltd.
|Product facility for anti-vibration products and wiper blade rubber||886||2007.12||2008.12||An 18 percent increase|
|Thai Fukoku Co., Ltd.
|Production facility for anti-vibration products etc||238||2007.12||2008.12||A 9 percent increase in the production capacity to make anti-vibration functional parts|
|Siam Fukoku Co., Ltd.
|Production facility for seal products||200||2008.01||2008.12||A 28 percent increase|
|Dongguan Fukoku Rubber & Plastics
Industry Co., Ltd.
|Production facility for seal products||272||2008.01||2008.12||A 28 percent increase in the production capacity to make seal products|
|Qingdao Fukoku Korea Auto Fittings Co.,Ltd.
|Production facility for anti-vibration products etc||268||2007.09||2008.12||A 188 percent increase in the production capacity to make anti-vibration functional parts|