Financial overview

In million JPY	FY2007	FY2006	Rate of Change (%)	Factors
Sales	27,385	24,472	11.9	・Sales of automobile parts, the Company's main products, maintained strong , backed by increasing demand for mini-vehicles due to soaring oil prices; as well as to the launch of new vehicle models by the Company's major customers. As a result, sales increased over those of the previous year. ・New unit systems for engines and transmissions sold well. ・Sales of automotive parts amounted to 15,135 million yen, a 5.5% increase year-on-year.
Operating income	1,319	1,050	25.6	・Ordinary income increased as a result of the Company's efforts to increase its sales and reduce costs, although some factors, noted below, put pressure on the Company's profit. These included an increase in depreciation expenses resulting from capital investments the Company made; higher rental fees; initial expenses incurred in preparing for a production launch at the plant processing CVT transmission components; and a loss on return of investment for the employees' qualified retirement pension fund due to a worsened investment environment.
Ordinary income	1,252	1,101	13.7
Net income	720	656	9.6	-

R&D activities

Utilizing its past experience, the Company incorporated MP design elements into the two new automatic stamping machines (one a 2000-ton and the other a 3800-ton), which were installed between 2007 and 2008. As a result, the Company was able to create a forging line which produces products faster and without waste.


The Company installed robots to prevent scratches that occur when products come into contact with each other.

Materials to be forged at its Mizuguchi Plant of Metal Tex, which was established in March 2008, are developed under a fully integrated production system in which all the processes used to make the materials, from design up to machining, are conducted there. As a result, the new plant succeeded in boosting its yield significantly compared to when forged products are manufactured under conventional means. The Company was also successful in reducing machining costs too.

Technical Agreements (Exported) as of March 2008

Partners	Country	Technology	The term of a contract
Bharat Forge Ltd.	India	Manufacturing technology for forged products	Nov. 2003-Oct. 2009
PT Menara Terus Makmur	Indonesia	Manufacturing technology for forged products	Oct. 1996- (Automatic renewal)

Capital investment
In FY2007, which ended at the end of March 2008, the Company invested 3,707 million yen mainly in facilities at itsof Mizuguchi Plant of Metal Tex. The new plant produced four types of finished sheaves (pulley components), which are components used in CVTs.