Press Kogyo Co., Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of Change (%) Factors
Sales 175,122 168,220 4.1 -
Operating income 8,886 11,312 (21.4) -
Ordinary income 9,664 10,941 (11.7) -
Net income 5,588 6,314 (11.5) -
Automotive parts division
Sales 145,543 127,292 14.3 1)

1) Automotive Business Operating Profit
-The Company recorded higher year-on-year operating revenue as a result of a recovery in production of regular and light trucks in Japan because of the demand created due to the country's recovering from the Great East Japan Earthquake, and as a result of eco-car sales incentives.

-In spite of the fact that the volume of regular trucks built for export was lower year-on-year starting from the second quarter and after, and the volume of light trucks built for export was lower year-on-year starting from the third quarter and after, exports for the year as a whole were higher. Production levels in Thailand were supported by strong demand seen the whole year, increasing significantly compared to those of the previous year. Production levels in the U.S.A. were higher year-on-year, thanks to greater demand that was driven by the economic recovery.

Recent Development Outside Japan

-The Company is accelerating setting up a complementary production network in the Southeast Asian region. To meet growing demand for vehicles, focused on trucks, in the local market of Thailand, the Company will enhance production capacity of light truck parts in close collaboration with its facility in Indonesia, which plans to commence manufacture of truck components in early 2014. Furthermore, the Japanese stamping parts supplier is seeking to develop and produce highly competitive products to offer to local vehicle manufacturers for their new models. Thailand, in which its three plants are located, is positioned as the company's key supply base. The Company is poised to further promote rationalization at the facilities in an attempt to increase production capacity. The Indonesian plant capable of making heavy-duty truck parts is planning to add stamping parts like exterior panels. It will start operations in early 2014 in tandem with the plant in Thailand. (From an article in the Nikkan Jidosha Shimbun on Nov. 16, 2012)

-The Company has set a sales target for fiscal 2012 in Thailand of 34.2 billion yen, up 60 percent from the previous year. It expects a significant gain in sales of parts, primarily for pickups. This year's production volume of vehicles in Thailand is projected to hit the highest record supported by recovery from the flooding damage of a year ago and a buoyant demand for compact vehicles. The Company, which owns three production facilities in Thailand, will continue high levels of investments to expand production capacity further. (From an article in the Nikkan Jidosha Shimbun on May 22, 2012) 

-The Company will start production of truck parts in Indonesia as early as the end of 2013. Following startup of cabin assembly for construction machinery in October, PT. PK Manufacturing Indonesia, a subsidiary established in Karawang, West Java, on September 19, will go into the second phase of construction to build a new structure for assembling truck frames and large axles. Frame assembly capacity is intended to be boosted for some 200,000 vehicles a year in the future. The subsidiary will build a plant for construction machinery parts with a floor space of 11,000 square meters on the land of about 50,000 square meters at a cost of 1.2 billion yen (approximately $15.3 million). In the building a 5,000-ton stamping machine and a cationic electrodeposition coating line capable of painting 12-meter side members are installed. Furthermore, the Company will invest 2.2 billion yen (approximately $28 million) in construction of a commercial vehicle parts plant of 18,000 square meters so that it can go into operation at the end of next year. (From an article in the Nikkan Jidosha Shimbun on Sep. 21, 2012)  

Outlook for FY ending Mar. 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 177,000 175,122 1.1
Operating income 9,400 8,886 5.8
Ordinary income 8,900 9,664 (7.9)
Net income 5,000 5,588 (10.5)

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


R&D Expenditures

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 263 249 185

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.
-In October 2012, the Company set the following as its R&D objectives:
  • Conduct research, testing, and studying in terms of new business items so as to discover new business opportunities that are outside of its core businesses in Japan.
  • To further advance its core business operations both inside and outside Japan, the Company is developing new production methods that will be of a higher level and will reduce costs; acquiring elemental data to further shorten the preparation time needed for launching production; developing technology that makes use of new facilities and equipment and establish methods for evaluating quality; and further enhancing its existing technologies.
  • The Company is establish testing methods that make use of its design capabilities and testing/evaluation capabilities and creates a strong database; enhancing and upgrading its performance evaluation capabilities, enhancing its pre-evaluation technology by raising the level of its FEM analysis technology, and strengthening its ability to make more powerful design presentations to customers.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Automotive components 6,693 10,042 3,993
Construction machinery components 1,674 1,390 1,280
Others 1 2 2
Overall 8,368 11,435 5,275
-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, construction machinery cabs and panels, which are its main products.

Planned Capital Investments (Automotive components)

(As of Mar. 31, 2013)
Name Purpose Planned amount
of investment
(in millions of JPY)
Planned completion
Fujisawa Plant
(Fujisawa City, Kanagawa Pref., Japan)
Production equipment for axles 810 May 2012 Jan. 2014
PK U.S.A., Inc.
(Indiana, USA)
Production equipment for panels 627 Jul. 2012 Feb. 2014
Press Kogyo Sweden AB
(Oskarshamn, Sweden)
Facilities for stamping processes 221 Jan. 2013 Sep. 2013
Thai Summit PKK Co., Ltd.
(Chonburi, Thailand)
Production equipment for frames 581 Jun. 2012 Nov. 2013
416 Jul. 2012 Feb. 2014
Production equipment for axles 879 Jun. 2012 Nov. 2013
2,356 Jan. 2013 Oct. 2014