Press Kogyo Co., Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 197,615 | 183,618 | 7.6 | - |
Operating income | 9,821 | 9,400 | 4.5 | - |
Ordinary income | 10,794 | 10,098 | 6.9 | - |
Net income | 6,356 | 6,270 | 1.4 | - |
Automotive-Related Business | ||||
Sales | 166,569 | 157,368 | 5.8 | 1) |
Operating income | 11,763 | 12,038 | (2.3) | - |
Factors
1) Sales of Automotive Business
-Sales increased year-on-year (y/y) due to higher domestic production of parts for domestic regular-sized trucks and light-duty trucks, which was supported by reconstruction projects and stable growth of capital investments in Japan. Exports of regular-sized trucks from Japan were about the same level as they were during the previous year because higher sales of finished trucks were offset by lower sales of knock-down exports. Exports of light-duty trucks increased year-on-year because a greater number of trucks were exported to the Middle East.
FCV Business
-The Company will break into business for fuel cell vehicles (FCVs) in 2015. The Company has been developing equipment that will be used to supply hydrogen at hydrogen refueling stations, jointly with an energy-related equipment manufacturer. The equipment is slated for commercialization in the fall of 2015 at the earliest. The Company intends to develop a new product other than its mainstay structural components such as axles and frames for large vehicles, and hopes to extend its operations into the business for green cars that have great growth potential. (From an article in the Nikkan Jidosha Shimbun on December 11, 2014)
Recent Development Outside Japan
-Preparations are being made to launch production of frames and axels for 2015-year models.
-In January 2014, production of automotive parts was launched in Indonesia.
-In July 2014 production of axel-tubes was launched in the U.S. for U.S. OEMs. Japanese OEMs placed firm orders for door-reinforcement parts.
Mid-term Management Plan (FY ending March 2015 - FY ending March 2019)
-The targets under the plan are as follows (on a consolidated basis):
FY ended Mar. 31, 2014 (Actual) |
FY ending Mar. 31, 2019 (Target) |
|
Sales | JPY 183.6 billion | JPY 270.0 billion |
Operating income margin | 5.1% | 10% or higher |
Equity ratio | 40.2% | 50% or higher |
ROE | 11.0% | 12% or higher |
Outlook for FY ending Mar. 2016 |
(in millions of JPY) |
FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual) |
Rate of Change (%) |
|
Sales | 199,600 | 197,615 | 1.0 |
Operating income | 9,400 | 9,821 | (4.3) |
Ordinary income | 9,000 | 10,794 | (16.6) |
Net income | 5,700 | 6,356 | (10.3) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditures |
(in millions of JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Overall | 379 | 262 | 263 |
Automotive-Related Business | 299 | 179 | 136 |
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.
Automotive Components
- FEM (finite element method) analysis: the Company's plastic manufacturing process simulation can simulate the high-speed deformation processes of materials in the die, which cannot be tested visually. This technology greatly contributes to identifying the cause of accuracy problems, finding out measures to solve the problem, reducing the development lead time, and cutting down on development cost.
- Structural analysis in the design stage: utilizing the FEM analysis method and the Company's original database helps exploring ways to reduce the product weight.
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Automotive-Related Business | 11,628 | 7,395 | 6,693 |
Construction Machinery-Related Business | 1,181 | 5,636 | 1,674 |
Others | 14 | 70 | 1 |
Overall | 12,824 | 13,101 | 8,368 |
-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, 2015) |
Name | Purpose | Planned amount of investment (in millions of JPY) |
Start month |
Planned completion |
Fujisawa Plant (Fujisawa City, Kanagawa Pref., Japan) |
Production equipment for axles | 147 | Apr. 2014 | Jun. 2015 |
Thai Summit PKK Co., Ltd. (Chonburi, Thailand) |
Production equipment for frames | 452 | Mar. 2014 | Jul. 2015 |
PK U.S.A., Inc. (Indiana, U.S.) |
Production equipment for panels | 625 | Mar. 2014 | Jul. 2015 |
Data
Business segment | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Automotive-Related Business | 5,048 | 4,947 | 4,919 |
Construction Machinery-Related Business | 907 | 989 | 822 |
Others | 56 | 26 | 26 |
Corporate (In common) | 211 | 209 | 199 |
Total | 6,222 | 6,171 | 5,966 |
Sales by Segment |
(in millions of JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Automotive-Related Business | 166,569 | 157,368 | 145,543 |
Construction Machinery-Related Business | 28,558 | 24,730 | 27,731 |
Others | 2,488 | 1,519 | 1,846 |
Adjusted amount | - | - | - |
Total | 197,615 | 183,618 | 175,122 |
Sales by Geographic Area |
(in millions of JPY) |
FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
Japan | 120,710 | 116,792 | 114,334 |
Asia | 51,286 | 46,570 | 44,888 |
Others | 25,618 | 20,255 | 15,899 |
Total | 197,615 | 183,618 | 175,122 |
Consolidated |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.) |
FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
Sales (million yen) | 147,117 | 168,220 | 175,122 | 183,618 | 197,615 |
Income from ordinary business activities (million yen) | 8,680 | 10,941 | 9,664 | 10,098 | 10,794 |
Net income (million yen) | 6,057 | 6,314 | 5,588 | 6,270 | 6,356 |
Comprehensive income (million yen) | 7,033 | 8,710 | 7,789 | 9,853 | 11,606 |
Net assets (million yen) | 45,760 | 51,952 | 58,498 | 65,293 | 74,536 |
Total assets (million yen) | 109,913 | 125,220 | 128,935 | 150,833 | 166,941 |
Book value per share (yen) | 371.11 | 437.54 | 493.40 | 557.98 | 640.98 |
EPS (yen) | 55.74 | 58.12 | 51.43 | 57.71 | 58.51 |
Diluted EPS (yen) | - | - | - | - | - |
Net asset ratio (%) | 36.7 | 38.0 | 41.6 | 40.2 | 41.7 |
ROE (%) | 16.1 | 14.4 | 11.0 | 11.0 | 9.8 |
PER | 6.3 | 9.6 | 9.5 | 6.5 | 8.3 |
Cash flow from operating activity (million yen) | 16,981 | 14,646 | 10,291 | 13,906 | 9,657 |
Cash flow from investment activity (million yen) | (9,863) | (11,907) | (10,545) | (18,599) | (10,899) |
Cash flow from financial activity (million yen) | (5,627) | (2,741) | (4,041) | 3,968 | 3,967 |
Balance at the term-end of cash and cash equivalents (million yen) | 10,287 | 15,371 | 11,840 | 12,153 | 15,495 |
Number of employees | 4,997 | 5,541 | 5,966 | 6,171 | 6,222 |
Non Consolidated
FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
Sales (million yen) | 103,709 | 124,495 | 111,572 | 119,897 | 124,569 |
Income from ordinary business activities (million yen) | 5,414 | 10,002 | 8,848 | 10,274 | 11,266 |
Net income (million yen) | 4,979 | 6,254 | 5,810 | 6,974 | 7,112 |
Paid-in Capital (million yen) | 8,070 | 8,070 | 8,070 | 8,070 | 8,070 |
Number of stock outstanding (1000) | 114,007 | 114,007 | 114,007 | 114,007 | 114,007 |
Net assets (million yen) | 36,831 | 44,052 | 49,116 | 55,268 | 62,628 |
Total assets (million yen) | 84,651 | 97,654 | 95,913 | 108,495 | 112,477 |
Book value per share (yen) | 338.94 | 405.43 | 452.07 | 508.74 | 576.54 |
Dividend per share (yen) | - | 8.00 | 9.00 | 10.00 | 11.00 |
EPS (yen) | 45.82 | 57.56 | 53.48 | 64.20 | 65.47 |
Diluted EPS (yen) | - | - | - | - | - |
Net asset ratio (%) | 43.5 | 45.1 | 51.2 | 50.9 | 55.7 |
ROE (%) | 14.5 | 15.5 | 12.5 | 13.4 | 12.1 |
PER | 7.7 | 9.7 | 9.1 | 5.8 | 7.4 |
Payout ratio (%) | 8.7 | 13.9 | 16.8 | 15.6 | 16.8 |
Number of employees | 1,927 | 2,115 | 1,970 | 1,953 | 1,930 |