Futaba Industrial Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of
change (%)
Sales 376,323 385,892 (2.5) -
Operating income 3,183 (13,585) - -The company was able to generate a profit from sales as a result of its company-wide efforts to revise its production operations, reduce unit prices, and cut costs.
Ordinary income (399) (18,587) - -
Current net income (565) (38,054) - -Current net income decreased year-on-year because the Company posted a 2.1 billion yen loss due to a product recall and other factors; although the company received a tax refund due to a change in the corporate tax structure.
Automotive Parts
Sales 366,825 369,232 (0.7) -
Operating income 2,750 (14,321) - -Operating income turned profitable as a result of the Company's efforts to reduce unit prices and improve its operating efficiency.

Organizational Changes

-The Company. announced on July 1 changes in its organization. It clarified responsibilities and authorities of board members in execution of their duties. In order to speed up business judgments, it set up nine divisions on June 26. They are Corporate Planning Division, Administration and Personnel Division, Accounting and Finance Division, Sales Division, Purchasing Division, Quality Control Division, Engineering Division, Production Technology Division and Manufacturing Division. (From an article in the Nikkan Jidosha Shimbun on July 2, 2009)

Medium-term Management Plan (FY2009 through FY2011)

-The Company released on November 19 its three-year mid-term business plan from fiscal 2009 through 2011, which calls for improvement in profitability through capital investment constraints and cost reduction activities, as well as productivity enhancement through strict observance of the Toyota Production System. Expecting increased sales of environmentally responsive products such as an exhaust heat recovery system for a hybrid vehicle and a diesel particulate filter, the supplier aims to achieve sales of 390 billion yen and operating profit of 11 billion yen respectively in fiscal 2011. (From an article in the Nikkan Jidosha Shimbun on Nov. 20, 2009)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in millions of JPY)
Overall 1,953 2,181 3,971
Automotive Parts - - 3,200

-Most of the Company's R&D activities are for automotive components.

R&D Activities

-The Company works on enhancing the development of its main products as well as environmentally friendly products by promoting joint efforts between industry and academia.
-The Company developed smaller and lighter exhaust heat recovery devices , but which actually achieve higher performance in hybrid vehicles, improving fuel efficiency. The Company received more orders for these devices.
-The Company worked on developing PM/NOx treatment devices for diesel vehicles to reduce exhaust emissions. The Company is working to expand their application to construction equipment.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 30,106 56,220 71,369

-The Company invested to increase its production capacity, primarily in the automotive parts business (mainly for stamping machines).
-Investments were made to rationalize operations and reduce labor in order to improve its productivity.
-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)

Purpose Planned
(in million
Starting Planned Completion
Futaba Industrial Co., Ltd.
Head Office, Okazaki Plant
(Okazaki City, Aichi)
Production facility 734 Aug. 2008 March 2011
Midori Plant
(Toyota City, Aichi)
Production facility 940 Jan. 2008 March 2011
Chiryu Plant
(Chiryu City, Aichi)
Production facility 177 March 2009 March 2011
Koda Plant
(Nukata gun, Aichi)
Production facility 1,596 July 2009 March 2011
R&D facility 304 March 2010 March 2011
Mutsumi Plant
(Okazaki City, Aichi)
Production facility 870 Sept. 2009 March 2011
Tahara Plant
(Tahara City, Aichi)
Building and
Production facility
957 Sept. 2008 March 2011
Takahashi Plant
(Okazaki City, Aichi)
Production facility 275 Jan. 2010 March 2011
Dies and jigs etc. 7,080 April 2008 March 2011
Consolidated subsidiary
(Futaba Imari Corp., Imari Plant
(Saga Pref., Japan)
Production facility 1,090 Sept. 2009 March 2011
(Futaba Imari Corp., Miyata Plant
(Fukuoka Pref., Japan)
Production facility 30 April 2010 March 2011
(Futaba Imari Corp., Nohgata Plant
(Fukuoka Pref., Japan)
Production facility 1,510 April 2010 March 2011
Futaba Hiraizumi Corp.
(Iwate Pref., Japan)
Production facility 530 Jan. 2010 March 2011
FIC America Corp.
(Illinois, USA)
Production facility 910 Feb. 2010 March 2011
Futaba Indiana of America Corp.
(Indiana, USA)
Production facility 1,680 March 2010 March 2011
Futaba Industrial Texas Corp.
(Texas, USA)
Production facility 230 April 2010 March 2011
FIO Automotive Canada Corp.
(Ontario, Canada)
Production facility 140 April 2010 March 2011
Futaba-Tenneco UK Ltd.
(Lancashire, UK)
Production facility 40 Jan. 2010 Dec. 2010
Futaba Industrial U.K. Ltd.
(Derbyshire, UK)
Production facility 10 Dec. 2009 Dec. 2010

Futaba Czech s.r.o.
(Czech Republic)

Production facility 2,040 June 2009 Dec. 2010
Tianjin Shuang Shye Mechanical Industrial Co., Ltd.
(Tianjin, China)
Production facility 360 Dec. 2009 Dec. 2010
Tianjin Futaba Shye Chan Mechanical Industrial Co., Ltd.
(Tianjin Development Area, China)
Production facility 850 Dec. 2009 Dec. 2010
Guangzhou Futaba Auto Parts Co., Ltd.
(Guangzhou, China)
Production facility 390 May 2009 Dec. 2010
Dongguan Futaba Metal Products Co., Ltd
(Dongguan, China)
Production facility 70 Jan. 2010 Dec. 2010
FMI Automotive Components Ltd.
(Haryana, India)
Production facility 20 April 2010 March 2011