Univance Corporation Business Report FY2012
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011||Rate of
|Operating income||1,592||1,293||23.1||-Operating profit increased year-on-year due to greater operating revenue and the success of various initiatives undertaken by the Company to rationalize operations.|
|Sales||36,736||29,961||22.6||-Operating revenue increased because of the moderate economic recovery that took place in North America and the strong growth in sales in Thailand.|
|Operating income||1,447||612||136.4||-Operating profit increased year-on-year due to the increase in operating revenue and the success of rationalization activities undertaken by the Company.|
|Sales||31,757||30,435||4.3||-Operating revenue increased year-on-year because of the higher volumes of parts produced to respond to the strong growth in auto sales in China and the ASEAN Region.|
|Operating income||66||600||(89.0)||-Operating profit decreased year-on-year because of lower selling prices of products, which was the result of an extremely competitive market. This was in spite of the Company's efforts to reduce costs based on enhancing productivity.
Recent Development Outside Japan
-The Company will step up production of gear products in Indonesia. It is going to establish a seamless production system from processing to assembling by adding a heat-treatment line to its existing plant. Demand for transmission gears and other products is growing, as the Company's major customers are increasing production in Indonesia. In the business year ending March 2012, the Company is expected to generate 500 million to 600 million yen in sales in Indonesia. The company is aiming to quintuple the yearly business volume to about 3 billion yen by the year ending March 2016. Redundant production equipment at the Company's three plants in Japan, the Main Plant, the Hamamatsu Plant and the Kosai Plant, will be shipped to the Indonesian facility, which will start full-scale production using the new equipment and devices in April or May. The plant will thereafter be positioned as the Company's key production base for gears, functioning as the supply hub for other markets as well, including Thailand and Japan. The Company's new Thailand plant will go on stream in September 2012 to produce 4WD transfer cases for supply to the Thai Plant of Ford Motor. Gears used in these products will be manufactured at the Indonesian factory. (From an article in the Nikkan Jidosha Shimbun on March 15, 2012)
-In anticipation of the future, the Company is taking steps to strengthen its competitive advantages by developing products that lower fuel consumption to better respond to environmental needs, following the directives set under its management plan, the Univance Production Way, that calls for producing numerous products in small lots at low cost; and developing technologies. In addition, the Company is re-assigning its management resources to more effectively utilize them, while enhancing both its product competitiveness and its profit structure.
- Expand the Control-unit Business by creating more competitive products that respond to customers' needs for "light weight" and "better fuel efficiency".
- Develop more cost-competitive products by making better use of the Company's core technologies so as to grow the business
- Strengthen and expand operations at three locations outside Japan, which are North America, Indonesia, and Thailand.
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011||FY ended Mar. 31, 2010|
|Ratio in total sales (%)||2.1||2.6||2.6|
R&D Structure-R&D activities at the Company are mainly carried out by the Product Design Division, Design Promotion Division, and DT Promotion Division where 125 R&D members work. Currently, R&D members account for approximately 8.3% of the Group's workforce.
R&D Activities1) Control-unit Business
-The Control-unit Business follows the three policies outlined below, which form the common basis for all R&D activities performed at the Company. This Business develops new products that optimize the high level of technology that the Company has in the area of control, working to create cost competitive products.
- Pursuit of greater functionality based on a high level of mechatronics.
- Pursuit of products and product-creation designed to best suit each region
- Pursuit of both environmental performance and competitive pricing.
-In order to become more competitive in the transfer unit market, the Company's major line of business, the Company is developing lighter and more compact systems, while at the same time increasing its product range. It is focusing on transfer units for use in small pick-up trucks and SUV, which is a market segment that is growing worldwide.
-The Company, in order to make lighter and more cost-competitive products, is actively developing 4WD systems that take advantage of proprietary technology that the Company has cultivated over the years by working in transfer-units. It is designing them for 4WD vehicles, which have front-wheel drive, destined to be marketed in developing countries.
-The Company is developing new transmissions for SUV, as well as for small- and medium-duty commercial vehicles. (Transmissions are its major products.) It is doing this by focusing on improving vehicle fuel efficiency, reducing emissions so as to meet environmental standards, and easing the burden on drivers behind the wheel.
-The Company is also strengthening its activities in engineering deceleration systems that can be equipped on various types of hybrid electric and electric vehicles.
2) Parts Business
-The Company conducts R&D activities on intermediate gearboxes, which are steering parts for compact cars, and on and manual-steering gearboxes.
-Going forward, in order to raise the competitive advantages of its products, the Company always works under an R&D policy that requires creating materials, production methods, and elemental design technology. In this regard, the Company is working mainly on its core product lines such as gearwheels, transmission axes, and axel parts. In addition, the Company is producing products and materials in countries outside Japan so as to increase its local production volume overseas.
|(in millions of JPY)|
|FY ended Mar. 31, 2012||FY ended Mar. 31, 2011|
-The Company made capital investments mainly to launch new operations and to enhance its production facilities so as to increase production capacity.
Planned Capital Investment
|(As of Mar. 31, 2012)|
(in millions of JPY)
|Details and objectives|
|Control-unit Business||2,395||Facilities for machine processing and starting new launch|
Facilities for machine processing; and increasing production capcity