Metalart Corporation 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
Sales 25,707 28,343 (9.3) -
Operating income 1,588 1,879 (15.5) -
Ordinary income 1,650 1,917 (13.9) -
Net income 1,014 966 5.0 -
Automotive Components
Sales 18,200 17,364 4.8 -Japan: Sales increased due to robust demand mainly for economy and hybrid vehicles because of eco-car sales incentives.

-Outside Japan: Sales increased due to robust sales of economy cars in emerging-market countries mainly in Asia, and due to strong sales of multi-purpose vehicles designed for resource-rich countries.

New Factory

-The Company's subsidiary Metaltex established its Kyushu Plant in Fukuoka Prefecture. The plant began processing finished automotive transmission parts under a seamless production system.

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

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ending Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 26,500 25,707 3.1
Operating income 1,700 1,588 7.0
Ordinary income 1,710 1,650 3.6
Net income 1,030 1,014 1.6


R&D Activities

-The Company continued developing its technology in the area of hollow forging in order to respond to the demand for lighter weight products that improve fuel consumption.

-The Company has worked on advancing digital engineering by conducting R&D activities that will lead to achieving a higher level of precision to strength analysis and lengthen the product-life of dies.  

-Based on a new production method, the Company successfully reduced six processes that were needed after the forging process to complete the production of shafts. This was made possible by combining hot-forming and cold-forming processes to make a single-unit shaft, which is a part that conventionally was built by welding two parts together. As a result, the Company achieved a net-shape ratio of 15%, which is the percentage of finished product to the mass of structural material (steel) used in forging. In addition, this new method achieved a cost-reduction of 20%.

Technology Licensing-out Agreement

(As of Mar. 31, 2013)
Partners Country Technology The term of a contract
PT. Menara Terus Makmur Indonesia Manufacturing technology for forged products Oct. 1996 -
(Automatic renewal)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,321 1,287 361

-The Company invested in facilities and equipment mainly for the machining line handling transmission parts at Metaltex Corporation's Kyushu Plant.

Planned Capital Investments

(As of Mar. 31, 2013)
Company Location Facilities & Activities Total investment (in millions of yen) Start date Completion Production capacity increase on completion
Metaltex Corporation
Kyushu Plant
Fukuoka Pref.,
Facility for machining automotive parts 801 Nov. 2012 Nov. 2013 -