Press Kogyo Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change (%) Factors
Sales 147,117 104,712 40.5 -
Operating income 9,136 (1,359) - -
Ordinary income 8,680 (1,028) - -
Net income 6,057 (2,939) - -
Automotive parts division
Sales 116,835 76,187 53.4 1)

- In Thailand, the Company started preparation work for production of components for remodeled pickup trucks, while starting operations at Thai Summit PK Corporation Ltd. in September 2010. In North America, it started producing panels for commercial vans in January 2011, which is a new business the Company won from Nissan.

- Sales of heavy-duty commercial vehicle products increased from the previous year’s result, thanks to growth in demand in Japan and strong exports. Sales of light-duty vehicle products were supported by bumper exports from Japan, a rise in demand for pickup truck components made in Thailand, and a mild market recovery in the U.S.

- Sales revenue from the finished vehicle business decreased due to a fall in the number of vehicles assembled.


-The Company eceived the Volvo Supplier Award for 2009. The award was given by Volvo to nine companies in recognition of the high marks they achieved in such areas as product quality, safety, and delivery. (From a press release on September 30, 2010)

Outlook for FY2010

(in millions of JPY)
  FY2011 FY2010 Year-on-year Fluctuation
Sales 168,000 147,117 20,993
Operating income 12,000 9,136 2,864
Ordinary income 11,500 8,680 2,820
Net income 5,750 6,057 (307)
*Forecast for FY2011 has been revised on August 7, 2011

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


R&D Expenditures

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 185
198 299

R&D Activities

- The Company is focusing on developing its major products such as axles and frames based on a medium- and long-term prospective.
- The Company worked on reducing development and production lead-time, improving product quality, and developing elemental technologies for the next-generation products and production lines.
- The Company launched a new team consisting of the plant technology division, the product design division, and the production method development division to establish and enhance its proprietary technologies. The integrated development team has also been working on studies to introduce new production technologies that contribute to greenhouse gas mitigation and development of next generation products.
- The company established advanced testing and evaluation methods leveraging its superior designing and testing capabilities, and database for strength levels. It also developed more sophisticated finite element method (FEM) analysis technology. The Company has thereby enhanced its assessment technologies and reduced development lead-time, improving its capabilities to design and propose new technologies.
<Automotive parts division>
- Under the theme of offering environmentally responsive products, the Company worked on developing forming technologies for high strength materials and optimum product designs to achieve weight reduction. It has also worked on establishing crash analysis technologies to enhance the safety of its products.
- 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)
  FY2010 FY2009 FY2008
Overall 5,275
7,420 5,632

-The Company focused its investment activities on building up its production operations, 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 3,993
Construction machinery components 1,280
Other 2
Total 5,275

Investment Outside Japan

-The Company announced on November 10 that it has established a new subsidiary in Suzhou, Jiangsu Province, China in October to manufacture components for automobiles and construction machineries. The new company, PK Manufacturing (Suzhou) Co., Ltd., is capitalized at 6 million dollars, which was fully invested by Press Kogyo. The subsidiary will be inaugurated in May 2011, and begin production operations in November the same year. PK Manufacturing (Suzhou) will design, develop, manufacture and sell components for automobiles, construction machineries and agricultural equipment. It will also manufacture and sell dies and jigs used for producing these products. (From an article in the Nikkan Jidosha Shimbun on November. 11, 2010)

Planned Capital Investments (automotive components)

(As of Mar. 31, 2011)

Name Purpose Planned amount
of investment
(million JPY)
Planned completion
Fujisawa plant
(Kanagawa Pref., Japan)
Production equipment for panels 260 July, 2007 Jun. 2011
Production equipment for the parts of Automotive
308 Mar. 2011 Aug. 2011
Thai Summit PK Corporation
(Rayong, Thailand)
Electrodeposition Coating Line 343,230
(1000 Thai Baht)
Apr. 2010 June, 2011
Production equipment for axles


(1000 Thai Baht)

Oct. 2008 July, 2011
Thai Summit PKK Co., Ltd.
(Chonburi, Thailand)
Production equipment for axles 361,938
(1000 Thai Baht)
Mar. 2010 Sep. 2011


(Indiana, U.S.A.)

Production equipment for panels 2,482
(1000 U.S. dollers)
Nov. 2010 July, 2011