U-SHIN Ltd. Business Report FY ended Nov. 2013
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Nov. 30, 2013 | FY ended Nov. 30, 2012 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 108,473 | 61,160 | 77.4 | - |
Operating profit | 1,791 | 2,618 | (31.6) | -Operating profit dropped year-on-year due to the following factors: ・Economic slowdown in Europe and South America ・Decline in production efficiency in Europe ・Cost incurred for reorganizing operations in Mexico |
Ordinary profit | 1,536 | 2,208 | (30.4) | - |
Net profit | 400 | (1,537) | - | - |
Automotive Components Division | ||||
Sales | 88,337 | 40,752 | 116.8 | -Sales at the Automotive Components Division more than doubled due the following factors: ・Recovery in business with Japanese customers ・Stable production in Thailand and China ・Effects of acquiring Valeo's Access Mechanism Business |
Operating profit | 1,963 | 2,589 | (24.2) | - |
Acquisition
- In May 2013, the Company acquired Valeo's Access Mechanism Business, including its holding company in the Netherlands (now called U-Shin Holdings Europe B.V.) and 10 subsidiaries. These companies are currently owned 100 percent by U-shin, which is reorganizing and integrating their operations. Its major initiatives include:- expanding engineering capabilities by improving development operations, introducing advanced equipment, and acquiring new intellectual properties
- reorganizing and integrating operations in Europe and Mexico to improve cost efficiency
- boosting sales by utilizing extended customer base in Europe and U.S.
Recent Development Outside Japan
<China>-The Company's new plant in Zhongshan, Guangdong Province started operating in September 2013.
<Mexico>
-As of November 30, 2013, the Company's new plant in Guanajuato is preparing for opening. The facility is expected to serve as the Group's major supply hub in the Americas.
Contracts
-The Company has received orders for nine electronic components from Mitsubishi Motors Corporation (MMC) and Nissan Motor Co., Ltd. (Nissan). The components include magnet-type lightweight electric steering locks used exclusively on mini vehicles, other types of steering locks, air conditioning parts and switches. These components will be produced in Hiroshima and Thailand. They will be installed on MMC's "eK Wagon" and "eK Custom", and Nissan's "Dayz "and "Dayz Highway Star". (From an article in the Nikkan Jidosha Shimbun on August 5, 2013)-The Company is supplying electric steering locks and heater control units for Honda's new "Fit".
- Electric steering locks: Featured on key-less operation systems. The Company made significant design changes in order to reduce the number of components and to make smaller and lighter products.
- Heater control units: Installed in the middle of center console. Hair-line pattern is used on the surface that has illuminating functions. This is the first time that such technology is applied to an automotive component.
- Low operating noise
- Smooth operations due to optimally controlled constant torque
- Easy mounting on vehicles with use of standardized ball joints
R&D
R&D Expenditure |
(in million JPY) |
FY ended Nov. 30, 2013 | FY ended Nov. 30, 2012 | FY ended Nov. 30, 2011 | |
Overall | 4,333 | 1,831 | 1,728 |
Ratio to sales (%) | 4.0 | 3.0 | 3.0 |
R&D Personnel | 471 | 200 | 203 |
R&D Structure
-The Company has transferred its development operations in Hamamatsu & Tokyo to its new facility in Hiroshima Prefecture.-Engineers at R&D facilities in Japan, China, the U.S. and India are collaborating to develop products that meet the needs of each market quickly and efficiently.
Product Development
Electric steering lock systems-The Company developed a compact electric steering lock system by adopting the direct screw system as standard to achieve high-strength and quiet operations required by its customers. It is currently developing the next-generation electric steering locks that meet the ISO26262 standards. The Company has significantly improved its development efficiency by sharing systems modules, which include hardware and software, among different products.
Mechanical climate controllers and Integrated switches
-The Company developed a compact and lightweight controllers and switches with improved operability.
Investment Activities
Capital Expenditure |
(in million JPY) |
FY ended Nov. 30, 2013 | FY ended Nov. 30, 2012 | FY ended Nov. 30, 2011 | |
Overall | 10,351 | 8,705 | 7,132 |
-Automotive Component Division | 9,821 | 8,483 | 6,986 |
-Major investment activities at the Automotive Component Division included spending on dies and production machinery and expenses for acquiring buildings for a new plant outside Japan.
New Investment Plan (Automotive Component Division) |
(As of Nov. 30, 2013) |
Name of Company/Plant | Location | Equipment | Estimated amount of Investment (in million JPY) |
Project Period | |
From | To | ||||
Hiroshima Production plant | Kure City, Hiroshima Pref. |
Production equipment and so on for automotive components | 1,953 | 2013.11 | 2014.11 |
U-SHIN Manufacturing (Zhongshan) Co., Ltd. | Guangdong, China |
Production equipment and so on for automotive components | 2,286 | 2013.11 | 2014.11 |
U-SHIN (Thailand) Co., Ltd. | Rayong, Thailand |
Production equipment and so on for automotive components | 915 | 2013.11 | 2014.11 |
U-SHIN Europe Ltd. | Kisber, Hungary |
Production equipment and so on for automotive components | 521 | 2013.11 | 2014.11 |
U-SHIN Autoparts Mexico, S.A. de C.V. | Guanajuato, Mexico |
Production equipment and so on for automotive components | 1,053 | 2013.11 | 2014.11 |
U-Shin France S.A.S. | Creteil, France |
Production equipment and so on for automotive components | 244 | 2013.11 | 2014.11 |
U-Shin Deutschland Zugangssysteme GmbH | Bayern, Germany |
Production equipment and so on for automotive components | 624 | 2013.11 | 2014.11 |
U-Shin Slovakia s.r.o. | Kosice, Slovakia |
Production equipment and so on for automotive components | 650 | 2013.11 | 2014.11 |
U-Shin do Brasil Sistemas Automotivos Ltda. | Guarulhos, Brazil |
Production equipment and so on for automotive components | 498 | 2013.11 | 2014.11 |
U-Shin Access Systems (Wuxi) Co., Ltd. | Jiangsu, China |
Production equipment and so on for automotive components | 579 | 2013.11 | 2014.11 |