Yutaka Giken Co., Ltd. Business Report FY2007
Business Highlights
Financial Overview
Highlights by Geographical Region
Japan
In May 2007, the Company shut down its Suzuka Plant. In the same month, its Mie Plant started operation and an integrated production system was put in place for manufacturing exhaust-related parts for Suzuka Plant of Honda Motor Co., Ltd.
The Company improved overall efficiency of Yutaka Plant, which is dedicated to the manufacture of drivetrain parts, by changing the layout in August 2007 as well as introducing latest facilities.
The Company acquired more shares of Shinnichi Kogyo, which had been its equity method affiliate, in March 2008. The Company held 49% of the shares and made it a consolidated subsidiary in order to ensure stable supply of components as well as to improve the production efficiency of drivetrain system components at Shinnichi Kogyo. Shinnichi Kogyo is a manufacturer of drivetrain system components, based in Gamagori city, Aichi prefecture.
North America
The Group's third plant in the U.S., Alabama Cullman Yutaka Technologies LLC., started operation in March 2008. It is working towards full-scale operations as an integrated production plant for drivetrain and exhaust systems.
Brazil
The Company's subsidiary, Yutaka Do Brazil Ltda, is preparing for the start of operations at its new plant; scheduled for Autumn 2008.
China
Wuhan Jin Feng Autoparts Co., Ltd. went into full-scale production. It manufactures automotive exhaust system components.
India
The Company's subsidiary, Yutaka Autoparts India Private Ltd., is preparing for the start of operations at its new plant; scheduled for Autumn 2008.
| (in million JPY) | FY2007 | FY2006 | Rate of change |
Main factors |
| Overall | ||||
| Sales | 227,012 | 199,177 | 14.0 | Sales rose due to increased sales of automotive parts. |
| Operating income | 8,756 | 8,237 | 6.3 | - |
| Ordinary income | 8,577 | 9,110 | (5.9) | - |
| Net income | 4,546 | 5,504 | (17.4) | - |
| Automotive components division | ||||
| Sales | 200,016 | 174,530 | 14.6 | Sales for the automotive components division increased due to the strong sales of Honda vehicles in North America and Asia. |
| Operating income | 7,202 | 6,982 | 3.2 | Operating income increased thanks to brisk sales in Asia, despite the decrease in Japan due to soaring materials prices, and in North America due to increases in expenses for the launch of new facilities and new models. |
Highlights by Geographical Region
Japan
In May 2007, the Company shut down its Suzuka Plant. In the same month, its Mie Plant started operation and an integrated production system was put in place for manufacturing exhaust-related parts for Suzuka Plant of Honda Motor Co., Ltd.
The Company improved overall efficiency of Yutaka Plant, which is dedicated to the manufacture of drivetrain parts, by changing the layout in August 2007 as well as introducing latest facilities.
The Company acquired more shares of Shinnichi Kogyo, which had been its equity method affiliate, in March 2008. The Company held 49% of the shares and made it a consolidated subsidiary in order to ensure stable supply of components as well as to improve the production efficiency of drivetrain system components at Shinnichi Kogyo. Shinnichi Kogyo is a manufacturer of drivetrain system components, based in Gamagori city, Aichi prefecture.
North America
The Group's third plant in the U.S., Alabama Cullman Yutaka Technologies LLC., started operation in March 2008. It is working towards full-scale operations as an integrated production plant for drivetrain and exhaust systems.
Brazil
The Company's subsidiary, Yutaka Do Brazil Ltda, is preparing for the start of operations at its new plant; scheduled for Autumn 2008.
China
Wuhan Jin Feng Autoparts Co., Ltd. went into full-scale production. It manufactures automotive exhaust system components.
India
The Company's subsidiary, Yutaka Autoparts India Private Ltd., is preparing for the start of operations at its new plant; scheduled for Autumn 2008.
R&D
R&D structure
Tochigi Development Center, which consists of Development Sections No.1, No.2 and No.3, and the Production Technology Office, mainly promote R&D activities.
-Automotive parts division
R&D Expense
R&D activities (FY2007)
Exhaust-related parts
-The Company developed new catalytic converters for new Honda Accord which contributed to an improvement of engine performance and reduction in weight and cost. The Company also improved fuel economy by using highly heat-resistant catalyst support materials. The products are commercially produced at Ranzan Plant, Cardington Yutaka Technologies Inc. in U.S.A., Foshan Fengfu Auto Co.,Ltd. in China, and YS Tech (Thailand) Co., Ltd. in Thailand.
-The Company developed new silencers. The products are commercially produced at Foshan Fengfu Auto Co.,Ltd. in China.
-The Company developed new finishers which are mounted on tail pipes to improve appearance quality. The products are commercially produced at Yutaka Manufacturing (Philippines) Inc. and supplied to Japan and U.S.A.
-The Company developed new catalytic converters, located immediately below the engine, which combine the functions of a catalytic converter and a DPF (Diesel Particulate Filter), for diesel engines to meet European exhaust emission regulations, EURO5. The products are low in weight and cost, and contribute to size reduction. Commercial production of these products commenced at Ranzan Plant.
-The Company developed a new integrated exhaust system from the exhaust manifold to the silencer for new Honda Fit. The products successfully reduced size and weight and are commercially produced at Mie Plant.
-For the North American market, the Company developed new silencers and finishers for new Honda Pilot. The products contributed to improving performance and reducing weight. Commercial production of silencers started at Alabama Cullman Yutaka Technologies LLC. in U.S.A. Finishers are commercially produced at Yutaka Manufacturing (Philippines) Inc. in the Philippines and supplied to U.S.A.
-The Company developed silencers and catalytic converters located immediately below the engine which contribute to improving engine performance as well as exhaust emission purification performance for Safari and Phoenix of Tata Motors in India.
-The Company developed catalytic converters located immediately below the engine which contribute to improving engine performance as well as exhaust emission purification performance for Indica Xeta of Tata Motors in India.
Tochigi Development Center, which consists of Development Sections No.1, No.2 and No.3, and the Production Technology Office, mainly promote R&D activities.
-Automotive parts division
| Exhaust-related parts | The Development Section No. 1 and the Production Technology Office focused on further advancement of eco-friendly technologies, like improving the cleaning of exhaust gases, fuel-efficiency and reducing noise, etc. Developed production technology and carried out R&D on exhaust systems, which improved both its product competitiveness and productivity. |
| Powertrain-related parts | The Development Section No. 2 and the Production Technology Office focused on R & D and production technology development in further efforts to reduce the size and weight of parts and improve fuel-efficiency, etc, which improved both its product competitiveness and productivity. |
R&D Expense
| (in million JPY) | FY2007 | FY2006 | FY2005 |
| Group | 2,598 | 2,295 | 1,853 |
| Automotive Parts | 2,568 | 2,250 | 1,800 |
R&D activities (FY2007)
Exhaust-related parts
-The Company developed new catalytic converters for new Honda Accord which contributed to an improvement of engine performance and reduction in weight and cost. The Company also improved fuel economy by using highly heat-resistant catalyst support materials. The products are commercially produced at Ranzan Plant, Cardington Yutaka Technologies Inc. in U.S.A., Foshan Fengfu Auto Co.,Ltd. in China, and YS Tech (Thailand) Co., Ltd. in Thailand.
-The Company developed new silencers. The products are commercially produced at Foshan Fengfu Auto Co.,Ltd. in China.
-The Company developed new finishers which are mounted on tail pipes to improve appearance quality. The products are commercially produced at Yutaka Manufacturing (Philippines) Inc. and supplied to Japan and U.S.A.
-The Company developed new catalytic converters, located immediately below the engine, which combine the functions of a catalytic converter and a DPF (Diesel Particulate Filter), for diesel engines to meet European exhaust emission regulations, EURO5. The products are low in weight and cost, and contribute to size reduction. Commercial production of these products commenced at Ranzan Plant.
-The Company developed a new integrated exhaust system from the exhaust manifold to the silencer for new Honda Fit. The products successfully reduced size and weight and are commercially produced at Mie Plant.
-For the North American market, the Company developed new silencers and finishers for new Honda Pilot. The products contributed to improving performance and reducing weight. Commercial production of silencers started at Alabama Cullman Yutaka Technologies LLC. in U.S.A. Finishers are commercially produced at Yutaka Manufacturing (Philippines) Inc. in the Philippines and supplied to U.S.A.
-The Company developed silencers and catalytic converters located immediately below the engine which contribute to improving engine performance as well as exhaust emission purification performance for Safari and Phoenix of Tata Motors in India.
-The Company developed catalytic converters located immediately below the engine which contribute to improving engine performance as well as exhaust emission purification performance for Indica Xeta of Tata Motors in India.
Powertrain-related parts
-The Company developed flat torque converters with lockup clutches for
high-output V6 engines for the new Honda Accord and Odyssey, and started
commercial production at Cardington Yutaka Technologies Inc. in U.S.A.
-The Company developed flat torque converters with lockup clutches for
L4 engines for the new Honda Accord and Fit, and started commercial production
at Yutaka plant, Foshan Yutaka Auto Parts Co., Ltd. in China, and YS Tech
(Thailand) Co., in Thailand.
-The Company started operation for assembly processing of torque converters
for the new Honda CR-V at Foshan Yutaka Auto Parts Co., Ltd. in
China.
Investment Activities
Capital Expenditure
Automotive Parts Division
The Group's automotive parts division will focus its investment activities on Yutaka Giken Co., Ltd. and Cardington Yutaka Technologies Inc. for the purpose of revamping equipment to increase production capacity; preparing production lines for new models; and streamlining operations to reduce costs.
Plans for facilities installation and renovation
| (in million JPY) | FY2007 | FY2006 | FY2005 |
| Group | 17,252 | 12,941 | 8,834 |
| Automotive Parts | 15,567 | 12,613 | 8,096 |
Automotive Parts Division
The Group's automotive parts division will focus its investment activities on Yutaka Giken Co., Ltd. and Cardington Yutaka Technologies Inc. for the purpose of revamping equipment to increase production capacity; preparing production lines for new models; and streamlining operations to reduce costs.
Plans for facilities installation and renovation
| Name of company or subsidiary (Location) |
Type of facility |
Planned amount of investment (million JPY) |
Start | Planned completion |
| The Company | ||||
| -Head Office -YutakaPlant (Shizuoka Pref., Japan) |
Manufacturing facilities for automobile parts etc., R&D facilities and other facilities | 2,893 | Jul. 2007 |
Mar. 2009 |
| -Mie Plant (Mie Pref., Japan) |
Manufacturing facilities for automobile parts etc. | 1,195 | Aug. 2007 |
Mar. 2009 |
| -Ranzan Plant (Saitama Pref., Japan) |
Manufacturing facilities for automobile parts etc. | 1,189 | Sep. 2007 |
Mar. 2009 |
| -Tochigi R&D Center (Tochigi Pref., Japan) |
R&D facilities | 716 | Feb. 2008 |
Mar. 2009 |
| Subsidiary | ||||
| Cardington Yutaka Technologies Inc. (Ohio, USA) |
Manufacturing facilities for automobile parts etc. | 2,733 | May 2007 |
Mar. 2009 |
| South Carolina Yutaka Technologies Inc. (South Carolina, USA) |
Manufacturing facilities for automobile parts etc. | 204 | May 2007 |
Mar. 2009 |
| UYS Limited (Oxford, UK) |
Manufacturing facilities for automobile parts etc. | 192 | Apr. 2008 |
Mar. 2009 |