Futaba Industrial Co., Ltd. Business Report FY2007
Business Highlights
Financial Overview
Business overseas
- China
The Company has started enhancing manufacturing capacity of body parts, mufflers and fuel tanks in Tianjin, planning to complete the preparation for 2009 by the end of fiscal 2007. Following in Tianjin, it will start building a new plant in Guangzhou at the end of this year to early next year, which is scheduled to start operations in the autumn of 2008. (From an article of Nikkan Jidosha Simbun on Nov. 19, 2007)
- India
In December 2007, the Company and Maruti Suzuki India Limited, which is a subsidiary of Suzuki Motor Corporation, jointly established FMI Automotive Components Ltd. in India. Futaba has a 51 percent ownership in the new entity, which manufactures mainly automotive mufflers.
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%.
| (in million JPY ) |
FY2007 | FY2006 | Rate of change |
Factors |
| Sales | 447,854 | 394,859 | 13.4% | Sales increased year-on-year, supported by stable production at its customers' plants at home and abroad. The rise was also attributed to the Company's having strengthened its marketing activities, expanded production facilities, and revamped its production lines and systems. |
| Operating income | 27,425 | 22,244 | 23.3% | The Company worked on reducing costs and enhancing business efficiencies. |
| Ordinary income | 24,847 | 23,457 | 5.9% | |
| Current net income | 11,046 | 12,770 | (13.5%) |
Business overseas
- China
The Company has started enhancing manufacturing capacity of body parts, mufflers and fuel tanks in Tianjin, planning to complete the preparation for 2009 by the end of fiscal 2007. Following in Tianjin, it will start building a new plant in Guangzhou at the end of this year to early next year, which is scheduled to start operations in the autumn of 2008. (From an article of Nikkan Jidosha Simbun on Nov. 19, 2007)
- India
In December 2007, the Company and Maruti Suzuki India Limited, which is a subsidiary of Suzuki Motor Corporation, jointly established FMI Automotive Components Ltd. in India. Futaba has a 51 percent ownership in the new entity, which manufactures mainly automotive mufflers.
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 Expense
R&D activities in FY2007
-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 greater demand for its high performance heat recovery equipment, which will improve the fuel economy of hybrid vehicles.
-The Company is developing PM/NOx treatment devices as a means of controlling exhaust emissions.
-The Company is also developing hydrogen generators, which are expected to improve vehicle fuel economy and reduce CO2 emissions.
| ( in million JPY) | FY2007 |
FY2006 |
FY2005 |
| Group | 3,971 | 3,909 | 3,692 |
| Automotive Parts | 3,200 | 3,110 | 2,993 |
R&D activities in FY2007
-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 greater demand for its high performance heat recovery equipment, which will improve the fuel economy of hybrid vehicles.
-The Company is developing PM/NOx treatment devices as a means of controlling exhaust emissions.
-The Company is also developing hydrogen generators, which are expected to improve vehicle fuel economy and reduce CO2 emissions.
Investment Activities
Capital Expenditure
In the fiscal year ending March 2008, 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 million JPY) | FY2007 |
FY2006 |
FY2005 |
| Amount | 71,369 | 58,091 | 61,585 |
In the fiscal year ending March 2008, 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)
| Name (Location) |
Facility type |
Planned investment (in million JPY ) |
Start | End |
| Futaba Industrial Co., Ltd. | ||||
| Head Office, Okazaki Plant (Okazaki City, Aichi) |
Production facility | 2,000 | Apr. 2007 |
Mar. 2009 |
| Midori Plant (Toyota City, Aichi) |
Production facility | 3,000 | Apr. 2007 |
Mar. 2009 |
| Chiryu Plant (Chiryu City, Aichi) |
Production facility | 1,450 | Apr. 2007 |
Mar. 2009 |
| Koda Plant (Nukata gun, Aichi) |
Production facility | 12,000 | Apr. 2007 |
Mar. 2009 |
| R&D facility | 600 | Dec. 2007 |
Mar. 2009 |
|
| Mutsumi Plant (Okazaki City, Aichi) |
Production facility | 3,500 | Apr. 2007 |
Mar. 2009 |
| Tahara Plant (Tahara City, Aichi) |
Building and Production facility |
6,600 | Apr. 2007 |
Mar. 2009 |
| Takahashi Plant (Okazaki City, Aichi) |
Production facility | 600 | Feb. 2008 |
Mar. 2009 |
| Dies and jigs etc. | 25,000 | Apr. 2007 |
Mar. 2009 |
|
| Consolidated subsidiary | ||||
| (Futaba Imari Corp. (Saga Pref., Japan) |
Production facility | 2,000 | Oct. 2007 |
Mar. 2009 |
| Futaba Hiraizumi Corp. (Iwate Pref., Japan) |
Production facility | 250 | Mar. 2008 |
Mar. 2009 |
| APICS Corp. (Aichi Pref., Japan) |
Building and Production facility |
1,500 | Dec. 2007 |
Mar. 2009 |
| FIC America Corp. (Illinois, USA) |
Production facility | 1,000 | Jan. 2008 |
Mar. 2009 |
| Futaba Indiana of America Corp. (Indiana, USA) |
Production facility | 700 | Jan. 2008 |
Mar. 2009 |
| Futaba Industrial Texas Corp. (Texas, USA) |
Production facility | 50 | Apr. 2008 |
Mar. 2009 |
| FIO Automotive Canada Corp. (Ontario, Canada) |
Production facility | 1,000 | Oct. 2007 |
Mar. 2009 |
| Futaba-Tenneco UK Ltd. (Lancashire, UK) |
Production facility | 1,500 | Dec. 2007 |
Dec. 2008 |
| Futaba Industrial U.K. Ltd. (Derbyshire, UK) |
Production facility | 2,000 | Dec. 2007 |
Dec. 2008 |
Futaba Czech s.r.o. |
Production facility | 500 | Dec. 2007 |
Dec. 2008 |
| Tianjin Shuang Shye Mechanical Industrial Co.,Ltd. (Tianjin, China) |
Production facility | 2,500 | May 2007 |
Dec. 2008 |
| Tianjin Futaba Shye Chan Mechanical Industrial Co.,Ltd. (Tianjin Development Area, China) |
Production facility | 1,800 | Jun. 2007 |
Dec. 2008 |
| Guangzhou Futaba Auto Parts Co., Ltd. (Guangzhou, China) |
Building and Production facility |
3,900 | Dec. 2007 |
Dec. 2008 |
| Dongguan Futaba Metal Products Co., Ltd (Dongguan, China) |
Production facility | 100 | Jan. 2008 |
Dec. 2008 |
|
FMI Automotive Components Ltd. (Haryana, India) |
Building and Production facility |
5,000 | Dec. 2007 |
Mar. 2009 |