FUKOKU CO., LTD. Business report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Sales||52,024||56,405||(7.8)||-Orders dropped drastically in the latter half of the year.|
|Operating income||373||2,767||(86.5)||-Higher prices of rubber and steel materials were negative factors.|
|Current net income||(1,976)||1,551||-||-|
|Industrial rubber products|
-Orders mainly for seal products including brakes and seals declined.
-Declined orders and higher material prices had a negative impact.
Recent Developments outside Japan
-The Company announced its plan to strengthen its production structure at the casting plant in Thailand run by its subsidiary Thai Fukoku Co., Ltd.
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-The Company announced the hiatus of Fukoku Rubber & Plastics (Shanghai) Co., Ltd., its 100% subsidiary producing wiper blades and seal products in China, as of March 31, 2009. In response to a large decrease in orders prompted by the deteriorating market situation, the company is planning to consolidate its operations to achieve higher productivity. (From an article in the Nikkan Jidosha Shimbun on Mar. 23, 2009).
-Major orders received during fiscal 2008 were:
|Isolation pulleys for small diesel engines||Passenger car makers in Japan||Commercial production started|
|Dumper pulleys for passenger cars||Manufacturers in and outside Japan||Commercial production started|
|Fuel system components made of fluorine specialty rubber||Major parts makers in Japan||Confirmed orders booked|
|Anti-vibration rubber for commercial cars
(5 parts including engine mount)
|Commercial car manufacturers in Indonesia||Confirmed orders booked|
|Rubber parts||Brake manufacturers in China||Confirmed orders booked|
|R&D Expenditure||(in millions of JPY)|
Licensing of Technology to Other Companies (As of Mar. 2009)
|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|
Licensing of Technology from Other Companies (As of Mar. 2009)
|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 millions of JPY)|
|Industrial Rubber Business||2,883||3,671||4,428|
-Industrial rubber products division invested mainly in rationalization and informatization programs.
Investments Outside Japan
-The Company announced its plan to strengthen its production structure at the casting plant in Thailand, which is run by its subsidiary, Thai Fukoku Co., Ltd. Thai Fukoku manufactures anti-vibration products for the automotive industry. The Thai unit, in line with the projected increase in automotive anti-vibration product orders, especially damper orders, has been conducting in-house processing of casting parts to be incorporated in dampers for ensuring stable supply and cost reduction. As it becomes apparent that the increase in production capacity is required to fulfill an increasing number of programs, the Company decided to boost casting capacity at the plant from 400 tons/month to 550 tons/month with the installation of an additional electric furnace around June 2008. (From a press release on May 27, 2008)