FUKOKU CO., LTD. Business report FY2007
Business Highlights
| Financial overview | (in millions of JPY) |
| FY2007 | FY2006 | Rate of Change (%) | Factors | |
| Overall | ||||
| 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 | 48,405 | 44,184 | 9.6 |
-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 | 2,539 | 2,665 | (4.7) |
-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. |
Orders
Major orders received during fiscal 2007 were:
| Product | Customer | Status |
| 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 |
R&D
Capital investment
<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)
Licensees (As of March 2008)
<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)
| Partner | Contract | Validity |
| 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)
| Partner | Contract | Validity |
| 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 |
Investment Activities
-Total capital investment in FY2007
was 4,038 million JPY.
-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)
-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)
| Name (Location) |
Facility type | Planned investment (in million JPY) |
Construction Start | Planned completion | Expected increase in production capacity |
| Gunma Plant (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
products |
339 | 2008.01 | 2008.12 | A 10 percent increase |
| Fukoku Korea Ltd. (Gyeonggi-do, Korea) |
Product facility for anti-vibration products and wiper blade rubber | 886 | 2007.12 | 2008.12 | An 18 percent increase |
| Thai Fukoku Co., Ltd. (Bangkok, Thailand) |
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. (Samutprakarn, Thailand) |
Production facility for seal products | 200 | 2008.01 | 2008.12 | A 28 percent increase |
| Dongguan Fukoku Rubber & Plastics
Industry Co., Ltd. (Dongguan, China) |
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. (Qingdao, China) |
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 |