Futaba Industrial Co., Ltd. Business Report FY2005
Business Highlights
| Financial overview | ( in millions of JPY) |
| - | FY2006 | FY2005 | R. C. | Factors |
| Sales | 394,859 | 325,181 |
21.4 | The Company achieved record-high sales due to its vigorous sales activities and the expansion of its production facilities. Sales also rose as a result of steady production volumes by its automaker customers. |
| Operating income | 22,244 | 17,623 |
26.2 | The Company achieved record-high performance in operating income, ordinary income, and current net income as a result of its efforts such as cost and expenditure reduction measures and operational efficiency improvement initiatives in response to severe cost reduction activities by its customers. |
| Ordinary income | 23,457 | 19,429 |
20.7 | |
| Current net income | 12,770 | 11,499 |
11.1 |
| ( R.C. : Rate of Change ) |
-The Company merged and absorbed Futaba Chiryu Corporation in April 2006, reorganizing it as its Chiryu plant.
-The Company's Nogata plant, its third production facility in Kyushu, started operating in December 2006.
Overseas operations
-Guangzhou Futaba Auto Parts Co., Ltd. started operating in May
2006. It is the Company's fourth facility in China.
-Dongguan Futaba Metal Products Co., Ltd started operating in July
2006. It is the Company's fifth facility in China.
-Futaba Industrial Texas Corp. started operating in October 2006.
It is the Company's fourth facility in North America.
Medium Term Business Plan
The Company aims to achieve the following objectives by the end
of March 2012.
-Sales of more than 500,000 million JPY.
-ROE of more than 8.0%.
R&D
| R&D Expenditure | ( in millions of JPY) |
| - | FY2006 | FY2005 | FY2004 |
| Group | 3,909 | 3,692 | 3,510 |
| Automotive Parts | 3,110 | 2,993 | 2,764 |
Development activities in FY2006
The Company worked on enhancing the development of its major products as well as developing environmentally friendly products based on strengthened industry-university joint-development activities. These efforts led to the mass production of exhaust heat recovery equipment which is designed to improve the fuel economy of hybrid vehicles.
As a means to control exhaust emissions, the company is developing PM/NOx treatment devices.
Investment Activities
| Investment Expenditure | ( in millions of JPY) |
| - | FY2006 | FY2005 | FY2004 |
| Group | 58,091 | 61,585 | 23,638 |
In the fiscal year ending March 2007, the Company invested to increase its production capacity, primarily in the automotive parts business (mainly for stamping machines). In addition, investments were made to rationalize operations and reduce labor in order to improve its productivity. Also, the Company invested to install production equipment (mainly assembly and welding lines and dies and jigs) needed to enable the Company to switch over to handling new products. The Company also invested in plant buildings and production facilities by either building new or adding on to existing facilities.
| New facilities ( Automotive Parts ) | ( in millions of JPY) |
| Name | Facility type |
Planned investment |
Start | End |
| Futaba Industrial Co., Ltd. | ||||
| Head Office,
Okazaki Plant (Okazaki City, Aichi) |
Production facility | 690 |
Nov. 2006 |
Mar. 2008 |
| Midori Plant (Toyota City, Aichi) |
Production facility | 1,000 |
Dec. 2006 |
Mar. 2008 |
| Chiryu Plant (Chiryu City, Aichi) |
Production facility | 580 |
Nov. 2006 |
Mar. 2008 |
| Koda
Plant (Nukata gun, Aichi) |
Production facility | 1,560 |
Aug. 2006 |
Mar. 2008 |
|
Research block, R&D facility |
360 |
Sep. 2006 |
Mar. 2008 |
|
| Mutsumi
Plant (Okazaki City, Aichi) |
Production facility | 3,140 |
Nov. 2006 |
Mar. 2008 |
| Production facility | 310 |
Apr. 2007 |
Mar. 2008 |
|
| Tahara Plant (Tahara City, Aichi) |
Production facility | 960 |
Nov. 2006 |
Mar. 2008 |
| Takahashi
Plant (Okazaki City, Aichi) |
Production facility | 700 |
Dec. 2006 |
Mar. 2008 |
| Dies and jigs etc. | 9,700 |
Sep. 2006 |
Mar. 2008 |
|
| Consolidated Subsidiary | ||||
| FUTABA IMARI
Corp. (Saga Pref., Japan) |
Building and Production facility |
4,200 |
Apr. 2006 |
Mar. 2008 |
| FUTABA HIRAIZUMI
Corp. (Iwate Pref., Japan) |
Production facility | 1,000 |
Jan. 2007 |
Mar. 2008 |
| APICS Corp. (Aichi Pref., Japan) |
Production facility | 600 |
Apr. 2007 |
Mar. 2008 |
| FIC America
Corp. (Illinois, USA) |
Production facility | 2,200 |
Apr. 2007 |
Mar. 2008 |
| Futaba Indiana
of America Corp. (Indiana, USA) |
Production facility | 1,100 |
Jan. 2007 |
Mar. 2008 |
| Futaba Industrial
Texas Corp. (Texas, USA) |
Production facility | 20 |
Apr. 2007 |
Mar. 2008 |
| FIO Automotive
Canada Corp. (Ontario, Canada) |
Production facility | 1,300 |
Mar. 2007 |
Mar. 2008 |
| Futaba-Tenneco
UK Ltd. (Lancashire, UK) |
Production facility | 1,100 |
Sep. 2006 |
Dec. 2007 |
| Futaba Industrial
U.K. Ltd (Derbyshire, UK) |
Production facility | 1,850 |
Sep. 2006 |
Dec. 2007 |
| Futaba Czech
s.r.o. (Czech) |
Production facility | 650 |
Jan. 2007 |
Dec. 2007 |
| Tianjin Shuang
Mechanical Industrial (Tianjin, China) |
Production facility | 2,200 |
Jan. 2007 |
Dec. 2007 |
| Tianjin Futaba
Shye Shyang Machinery Co., Ltd. (Tianjin Development Area, China) |
Production facility | 2,750 |
Jul. 2006 |
Dec. 2007 |
| Guangzhou
Futaba Auto Parts Co., Ltd. (Guangzhou, China) |
Production facility | 1,500 |
Jan. 2007 |
Dec. 2007 |
| Dongguan
Futaba Metal Products Co., Ltd. (Dongguan, China) |
Production facility | 50 |
Jan. 2007 |
Dec. 2007 |