Yutaka Giken Co., Ltd. Business Report FY2008
|Financial Overview||(in million JPY)|
|FY2008||FY2007|| Rate of
|Sales||205,049||227,012||(9.7)||-Sales, operating income, and ordinary income all decreased year-on-year due to soaring oil and materials prices, the slowing global economy, the rising value of the yen, and falling prices of Japanese stocks.|
|Automotive components division|
Highlights by Geographical Region
-Despite the Company's efforts to improve productivity, which included raising its rate of yield and revamping its stamping methods, both sales and income decreased year-on-year. Some of the major factors contributing to the decline were a large drop in sales of the Company's products due to decreasing vehicle sales, soaring materials prices, losses from negative foreign currency translation, and increased depreciation costs due to the Company's reducing the service life of the Group's production equipment. As a result, sales were 88,543 million yen, down 11.2 percent year-on-year, and the operating loss totaled 1,173 million yen.
-In response to Honda Motor's project involved with transferring its car assembly operations, the Company moved part of its production lines making exhaust systems from its Mie Plant (in Mie Prefecture) to its Arashiyama Plant (in Saitama Prefecture), establishing a system in which both plants supply each other with their respective products.
-The Company started manufacturing products for Honda's hybrid model as well as those for fuel cell cars.
-Although production operations at Alabama Cullman Yutaka Technologies LLC., the Group's third facility North America, started to gain momentum, sales in the region fell mainly due to decreasing vehicle sales in the slumping U.S. market, contracted sales of products used in medium- and heavy-duty vehicles, soaring materials prices, and losses from negative foreign currency translation. Sales in the region totaled 66,535 million yen, down 15.0 percent compared to that of a year ago, and the operating loss amounted to 20 million yen.
-The launch of operations at Yutaka Autoparts India Private Ltd., the Group's second facility in India, brought in additional revenue. Falling sales of vehicle components, soaring materials prices, and losses from negative foreign currency translation, however, more than offset the positive gain in sales revenue in terms of profit. Sales were 17,275 million yen, up 2.2 percent year-on-year; and operating income was 2,011 million yen, down 6.5 percent year-on-year.
-Supported by strong sales of Honda vehicles and the launch of commercial operations at a new plant in China, both sales and income rose year-on-year. Sales totaled 21,007 million yen, up 70.7 percent year-on-year; and operating income amounted to 2,583 million yen, up 81.0 percent year-on-year.
-While a new plant at the Company's Brazilian subsidiary, Yutaka Do Brazil Ltda., started operating as planned, UYS Limited, the Group's operations in the U.K. experienced a huge drop in sales due to a decline in demand. Sales in the "other regions" were 11,688 million yen, a decrease of 41.1 percent year-on-year; and operating income was 21 million yen, a fall of 96.1 percent year-on-year.
|Business Forecasts for FY2009||(in million JPY)|
|FY2007 (actual)||FY2008 (actual)||FY2009 (forecast)|
|By Region||(in million JPY)|
|FY2007 (actual)||FY2008 (actual)||FY2009 (forecast)|
|Sales||Operating Profit||Sales||Operating Profit||Sales||Operating Profit|
|Sales by Product||(in million JPY)|
|FY2007(actual)||FY2008 (actual)||FY2009 (forecast)|
|Automotive exhaust systems||152,050||136,420||102,060|
|Automotive drivetrain systems||41,490||42,420||32,000|
|Other automotive components||6,480||4,080||2,280|
|R&D Expense||(in million JPY)|
-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.|
-The Company developed low-cost catalytic converters for the new Honda Freed by using as many common parts as possible. Mass production of the products began at the Ranzan Plant.
-The Company developed new catalytic converters for the new Honda Life. These converters, which are lower in cost, also are designed to reduce weight. They are being commercially produced at the Mie Plant. Two of these catalytic converters are being fitted immediately below the engine, offering improved performance in terms of emissions purification.
-The Company developed low-cost catalytic converters for the new Honda Odyssey by using as many common parts as possible. Mass production of the products began at the Ranzan Plant.
-The Company developed a seamless production line for exhaust systems used in the new Honda Insight. The integrated production system, which covers production of compact and lightweight exhaust manifolds up to silencers, was put into service on the mass production line at the Mie Plant. The exhaust systems use more numbers of common parts, which results in enhancing productivity, reducing costs, and achieving a superior level of performance in terms of emissions purification and noise silencing.
-The Company developed and started mass production of new silencers for the Honda FCX Clarity fuel cell car.
-For the new Honda Pilot to be sold in the U.S. the Company developed new silencers and finishers that are lighter in weight and provide better product performance.
-Alabama Cullman Yutaka Technologies LLC, the Company's consolidated subsidiary in the U.S., started mass production of silencers.
-Yutaka Manufacturing (Philippines) Inc., the Company's consolidated subsidiary in the Philippines, started commercial production of finishers to supply to the U.S. market.
-For the new Honda City to be sold in Asia, which includes the Chinese market, the Company developed high performance, lightweight and low-cost catalytic converters. Mass production of the converters began at both YS Tech (Thailand) Co., Ltd., a consolidated subsidiary in Thailand; and Yutaka Autoparts India Private Ltd., a consolidated subsidiary in India. The Company also developed silencers designed exclusively for the Chinese market. The production of these silencers is being handled by Foshan Fengfu Auto Co.,Ltd., which manufactures entire exhaust systems. Foshan Fengfu is the Company's consolidated subsidiary in China.
-The Company developed silencers and catalytic converters that fit immediately below the engine on the new Indica and the Indicuz manufactured by Tata Motors in India. This results in improving engine performance as well as the performance of exhaust emission purification. Commercial production of these products started at Yutaka Autoparts Pune Ltd., the Company's consolidated subsidiary in India.
-The Company developed dual mass flywheels for the L4 engines mounted on the new Honda Insight. Mass production of these flywheels began at the Yutaka Plant. Commercial production of these products started at Alabama Cullman Yutaka Technologies LLC, a consolidated subsidiary in the U.S.
-The Company developed flat torque converters with lockup clutches for high-output V6 engines used in the Odyssey and the Pilot manufactured by Honda.
-The Company developed flat torque converters with lockup clutches for L4 engines being mounted on the new Honda Fit, and started commercial production of these at both Foshan Yutaka Auto Parts Co., Ltd. in China, and YS Tech (Thailand) Co., Ltd. in Thailand.
-The Company developed flat torque converters with lockup clutches for the new Honda Civic, and started commercial production at Foshan Yutaka Auto Parts Co., Ltd. in China.
|Capital Expenditure||(in million JPY)|
Automotive Parts Division
-The Group's automotive parts division focused its investment activities on Yutaka Giken Co., Ltd. and Cardington Yutaka Technologies Inc. in the U.S. for the purpose of preparing production lines for new models, revamping equipment to increase production capacity, and streamlining operations to reduce costs. It also invested in Alabama Cullman Yutaka Technologies LLC., its new facility.
-In FY2009, the Group plans to spend 3,150 million yen in capital investments.
Plans for Facilities Installation and Renovation (As of Mar. 2009)
|Name of company
(Shizuoka Pref., Japan)
|Manufacturing facilities for automobile parts etc., R&D facilities and other facilities||1,739|| Apr.
(Shizuoka Pref., Japan)
|Manufacturing facilities for automobile parts, etc.||130||Oct.
(Mie Pref., Japan)
|Manufacturing facilities for automobile parts, etc.||408||Jan.
(Saitama Pref., Japan)
|Manufacturing facilities for automobile parts, etc.||385||Oct.
|Tochigi R&D Center
(Tochigi Pref., Japan)
|Alabama Cullman Yutaka Technologies LLC.
|Manufacturing facilities for automobile parts, etc.||413|| Apr.