Press Kogyo Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 104,712 157,487 (33.5) -
Operating income (1,359) 2,753 - -
Ordinary income (1,028) 2,190 - -
Net income (2,939) (1,945) - -
Automotive parts division
Sales 76,187 110,027 (30.8) -Sales for the year were significantly lower due to sluggish demand in medium-duty trucks in Japan, and in cars produced for export.

Business Restructuring

-The Company announced its plans to liquidate its wholly owned subsidiary Press & Plat N.V. based in Tongeren, Belgium. Press & Plat N.V. mainly manufactures and sells components for trucks. The shrinking demand for trucks in Europe and its negative impact on the performance of the subsidiary have forced the company to reach a decision. The liquidation procedures will be completed in July 2010. (From a press release on Feb. 9, 2010)

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

Outlook for FY2010

(in millions of JPY)
  FY2010 FY2009 Year-on-year Fluctuation
Sales 128,300 104,712 23,588
-Parts for heavy-duty commercial vehicles 43,982 35,858 8,124
-Parts for light-duty commercial vehicles 42,942 38,401 4,541
Operating income 5,000 (1,359) 6,359
Ordinary income 4,550 (1,028) 5,578
Net income 2,750 (2,939) 5,689

Business Plan

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)
  FY2009 FY2008 FY2007
Overall 198 299 187

R&D Activities

Automotive parts division
-The Company worked to add molding technology, which is designed to form high-strength products based on a low-temperature coating process, to its production lines. The coating was recently developed as a solution to make components lighter and more eco-friendly.
-The Company is now looking for more efficient, alternative methods to replace its energy-wasting processes used for making large parts.
-The Company is trying to respond to diversifying product specifications by combining common parts with other parts, without sticking to the conventional idea about how products should be designed. It is also developing elemental technology that can be used to reduce costs.

Investment Activities

Capital Investment

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 7,420 5,632 6,708

-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)
Automotive parts 7,404
Automotive assembly
Construction machinery components
Automotive stamping dies and assembly devices 1
Other 14
Total 7,420

Planned Capital Investments (automotive components)

(As of Mar. 31, 2010)

Name Purpose Planned amount
of investment
(million JPY)
Planned completion
Fujisawa plant
(Kanagawa Pref., Japan)
Production equipment for panels 260 July, 2007 Dec. 2010
Thai Summit PKK Co., Ltd.
(Chonburi, Thailand)
Production equipment for axles 361 million
Thai Baht
Mar. 2010 Sep. 2011
Production equipment for frames
222 million
Thai Baht
Feb. 2010 June, 2011
Thai Summit PK Corporation
(Rayong, Thailand)
Production equipment for axles 222 million
Thai Baht
Oct. 2008 July, 2011