Yutaka Giken Co., Ltd. Business Report FY2010
|(in million JPY)|
|Sales||179,417||166,567||7.7||-Despite the losses from the Great East Japan Earthquake and higher yen, sales increased year-on-year, thanks to growth in demand from its customers in all regions.|
|Operating income||11,496||6,857||67.7||-Profits increased as a result of the Company’s continued efforts to cut cost and enhance its production structure.|
|Automotive components division|
- Despite the negative effects caused by the Great East Japan Earthquake, sales in Japan increased 9.9 percent year-on-year to 92,370 million yen, thanks to largely improved demand buoyed partially by the government's economic policy.
- Although rate of improvement was lower than that in other regions, sales in North America climbed by 1.2 percent year-on-year to 50,673 million yen.
- Thanks to a significant improvement in demand, sales went up 21.4 percent to 19,890 million yen.
- Supported by continued strong sales of Honda vehicles, sales grew 8.5 percent year-on-year to 26,705 million yen.
- Sales increased 24.3 percent year-on-year to 9,101 million yen. Production in the U.K. returned to normal after being temporarily suspended due to inventory adjustment. Sales in the country also improved, which contributed to a rise in sales to 9,101 million yen, up 24.3 percent year-on-year.
Recent Developments Outside Japan- The Company will strengthen the regional management function overseas. It has opened regional headquarters in three areas of North America, China and Asia, which aim to manage the local operations independently with purchasing functions. With the purchasing functions as well as the systems capable of prompt response to the needs of the markets, the company will further raise local content ratios of parts and materials in an aim to increase its cost competitiveness. The Company has 14 production operations in eight countries including the U.S., Thailand, China and India. The three regional headquarters have already launched efforts to reinforce responsiveness to the respective markets. Area management offices, to be formed in each regional headquarters, will be responsible for production operations of each area. This regional management system will be developed on a full scale through the new, three-year medium-term business plan starting in FY2011.(From an article in the Nikkan Jidosha Shimbun on November. 18, 2010)
Restructuring- The Company announced that it has started studies to reorganize its production operations in Japan. Specifically, it plans to combine two operations in Hamamatsu, Shizuoka Pref. by integrating the Takaoka Plant for motorcycle parts and general-purpose parts into its major automobile parts plant, Yutaka Plant. With the future of the automobile market uncertain, the company aims to streamline its operations and improve competitiveness through the reorganization. Meanwhile, the sellout plan of the Company's subsidiary in India to an exhaust system supplier of the Faurecia Group, France, scheduled for late October, has been postponed since the negotiations and procedures have not been completed.(From an article in the Nikkan Jidosha Shimbun on November. 1, 2010)
Outlook for FY2011
|(in millions of JPY)|
|Rate of Change(%)|
|(in million JPY)|
R&D Structure- Tochigi Development Center, which consists of Development Sections No.1, No.2, No.3 and No.4 and the Production Technology Office, mainly promote R&D activities.
- 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.
- 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 R&D division of Cardington Yutaka Technologies Inc., a consolidated subsidiary of the Company, developed technologies to improve productivity in making high performance exhaust system by engineering advanced gas purification technology, fuel saving technology, and noise absorbing technology.
- The Company developed and started to mass produce catalyst converters and silencer systems for the Honda Fit and the Fit hybrid.
- The Company developed exhaust systems for the Accord diesel vehicle sold in Europe.
- The Company developed and started mass production of torque converters for the Honda Civic.
- In response to increased needs for lockup clutch mechanisms from its customers, the company developed functional and durable products, which contributed to enhanced vehicle fuel economy. It also developed torque converters with a multi-plate lockup clutch system for the Honda Odyssey.
- The Company developed and started mass production of exhaust systems for the Honda Odyssey sold in the U.S.
- The Company started production of catalyst converters for the Honda Civic sold in the U.S.
|(in million JPY)|
- The Company invested 1,643 million in Japan. Focus of its investment activities were set on introducing new equipment to deal with model changes and streamlining operations for cost reduction, especially at its main operations.
- The Company invested 1,781 million yen in its North American operations, focusing on Cardington Yutaka Technologies Inc. to produce new products for remodeled vehicles.
- The Company invested 721 million yen at Yutaka Autoparts India Private Ltd. and other facilities to deal with vehicle models changes and expand production capacity.
-The Company invested 538 million yen to deal with model changes and expand production capacity especially at Wuhan Jin Feng Autoparts Co., Ltd.
Plans for Facilities Installation and Renovation
(As of Mar. 31, 2011)
|Name of company or subsidiary
|Planned amount of investment
|Expected level of increase in capacity|
(Shizuoka Pref., Japan)
|Manufacturing facilities for automobile parts etc., R&D facilities and other facilities||929||2010.08||2012.03||Slight increase|
(Mie Pref., Japan)
|Manufacturing facilities for automobile parts, etc.||198||2010.09||2012.03||
(Saitama Pref., Japan)
|Manufacturing facilities for automobile parts, etc.||199||2010.05||2012.03||
|Tochigi R&D Center
(Tochigi Pref., Japan)
|Cardington Yutaka Technologies Inc.
|Manufacturing facilities for automobile parts, etc.||950||2010.09||2012.03||
|Alabama Cullman Yutaka Technologies LLC.
Investment for future business expansion