Press Kogyo Co., Ltd. Business report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Sales||157,487||185,523||(15.1)||-Overall sales decreased from the previous year's result, despite the Company's active marketing activities, which resulted in winning new program business. Its new business included axle unit assembly programs for Mitsubishi Fuso's heavy- and medium-duty trucks.|
|Automotive parts division|
|Sales||110,027||127,892||(14.0)||-Sales at the Division decreased from a year ago due to falling demand for medium-duty trucks in Japan and a significant decrease in exports.|
-The Company announced that it has received a new order to assemble and process large and medium axle units from Mitsubishi Fuso Truck and Bus Corporation. The Company has been welding and machine processing large and medium axles for Mitsubishi Fuso. The Company is due to start working on the all the assembly and processing work done on axel units, which was work previously conducted by Mitsubishi Fuso in the past, at its Kawasaki factory in August 2008. Approximately 15 billion yen in sales is expected annually with this newly won business. ( From a press release on May 16, 2008)
-Having won its first supply agreement with Toyota Motor, the Company will start supplying its products to the automaker in October 2009.
-The Company announced that it plans to establish a new joint venture with Thai Summit Auto Parts Industry Co., Ltd. (TSA) for the purpose of consolidating its four existing joint venture companies in Thailand, which are Thai Summit PKK Co., Ltd.; Thai Summit PKK Bangna Co., Ltd.; Thai Summit PKK Bangpakong Co., Ltd.; and Thai Summit PKK Engineering Co., Ltd. The new joint venture called Thai Summit PK Corporation Ltd. is scheduled to be established at the end of November 2008. The new entity, a producer of automotive components and metal molds, will be capitalized at 700 million baht, with both the Company and TSA each holding a 50% stake. (From a press release on Nov 13, 2008)
-In order to cope with the shrinking SUV market, the Company closed down two plants in the southern U.S., integrating their operations into its Indiana facility.
Mid-term business plan (covers FY2008 ending March 2009 and FY2010 ending March 2011)
The targets for FY2010 are:
Consolidated sales: 240 billion yen
Consolidated operating income: 15 billion yen
|R&D Expenditures||(in millions of JPY)|
1. Automotive parts division
Shortening preparation time for development and production
-The Company started compiling its expertise on analytical technology by implementing plastic forming simulation technology and FEM analysis software in other element processing areas. By doing so, it aims to build a digital engineering development structure by combining its wealth of know-how together with these analytical technologies.
Developing production methods that reduce product weight and environmental impact
-In order to reduce product weight, the Company developed and implemented new technologies. One of these technologies is being applied to form high-tensile steel sheets; while another is a method for plating coating materials at low-temperature. The Company also launched a development project to engineer a new production technology that can be applied on products that currently involve large energy losses.
|Capital Investment||(in millions of JPY)|
-The Company focused its investment activities on building up its production operations, reducing costs, promoting labor savings, enhancing production efficiency, and improving the reliability of its products in order to respond to new program business for frames, axles, suspensions, and construction machinery cabs, which are its main products.
|Division||(in millions of JPY)|
|Construction machinery components|
|Automotive stamping dies and assembly devices||2|
Planned Capital Investments (automotive components) (As of Mar. 2009)
|Name||Purpose||Planned amount of investment
|Start month||Planned completion|
|Fujisawa plant||Production equipment for panels||260||July, 2007||Sep. 2009|
|Utsunomiya plant||Production equipment for axles||865||Oct. 2008||Dec. 2009|
|Thai Summit PKK Co., Ltd.||Production equipment for frames||279 million Thai Baht||to be determined||to be determined|
|Production equipment for axles
||78 million Thai Baht||to be determined||to be determined|
|Thai Summit PKK Bangna., Ltd.||Production equipment for axles||222 million Thai Baht||Oct. 2008||July, 2011|
|New facility||454 million Thai Baht||June, 2008||Sep. 2009|