Yutaka Giken Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(IFRS, in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of change (%) | Factors | |
| Overall | ||||
| Revenue | 181,158 | 157,176 | 15.3 | See below |
| Operating income | 9,644 | 12,096 | (20.3) | |
| Income before income taxes | 9,687 | 11,336 | (14.5) | |
| Profit for the year attributable to owners of the parent | 3,006 | 5,455 | (44.9) | - |
Factors
-There were positive factors such as increased product orders from OEMs both in and outside Japan, effective rationalization initiatives, and positive currency translation. But profit was lower due to worsening product specs and a deteriorating profit structure in North America, and an impairment loss for fixed assets posted at the North American subsidiary due to lower profitability.
-All regions reported higher sales and all regions except North America reported higher operating profit year-over-year.
-As for profit by product sector, the automobile business was JPY 163.2 billion, a 16.4% increase year-over-year.
Contracts
| -Major contracts given for FY ended March 2018 |
| Product ordered | Vehicle Model | Features |
| Triple exhaust system | Honda 「CIVIC TYPE-R」 | Reducing pressure loss in silencers raised the power of high-output engines to the maximum level. |
| Silencer | Honda 「AMAZE」 | Integrating two silencers by optimizing their placement and capacity, improved productivity and package efficiency and reduced overall capacity by 20%. |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Japan | 2,740 | 2,751 | 2,547 |
| North America | 179 | 139 | 134 |
| Total | 2,919 | 2,890 | 2,681 |
R&D Structure
-The main R&D functions of the Company are the R&D department at the Tochigi R&D Center and the production department’s technology development office. In addition, Cardington Yutaka Technologies Inc. (Ohio, USA), which is the main R&D function in North America, develops products designed for the North American market.
R&D Activities
Exhaust systems
The Company is conducting R&D activities on and developing production technology for exhaust systems, working to improve its productivity and product competitiveness by further advancing eco-friendly technology that improves exhaust-gas purifying performance, fuel efficiency, and quietness.
-The Company completed developing an exhaust converter and exhaust silencer for the new-version N-BOX and started producing them at the production plant in Mie Prefecture.
-The Company completed developing an exhaust converter for the new-version Accord and started producing it at Cardington Yutaka Technologies Inc.
-The Company completed developing an exhaust converter and an exhaust silencer for the new-version Swift Sports and started producing them at the production plant Mie Prefecture and at Sumirex, a consolidated subsidiary in Japan.
Heat-management System Parts
The Company is conducting R&D activities as well as developing production technology to improve fuel efficiency and create environmentally friendly technology.
-The Company completed developing a heat-collector for the new-version Accord Hybrid and started producing it at Cardington Yutaka Technologies Inc.
Drive-train products
-The Company completed developing a torque converter for the new-version N-BOX and started producing it at the home-office production plant in Shizuoka Prefecture.
ｰThe Company completed developing a torque converter for the new-version Odyssey and Accord and started producing them at Alabama Cullman Yutaka Technologies LLC.
Motor system products
The Company is conducting R&D activities on as well as developing production technology for high-performance motor-parts for next-generation vehicles that are becoming more electrified.
-The Company completed developing motor parts such as magnet plates for the new-version STEP WGN and started assembling rotors at the at the home-office production plant in Shizuoka Prefecture.
The Company is developing products for the North American market, mainly exhaust products for automobiles.
-The Company completed developing an exhaust converter and exhaust silencer for the new-version Odyssey and started producing them at Alabama Cullman Yutaka Technologies LLC.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 7,055 | 11,722 | 14,072 |
-The Company made capital investments mainly in its automotive parts business to improve its production operations and respond to new models.
Investment for electrified vehicle motor parts
-The Company has started considering the possibility of increasing production capacity for motor parts used in hybrid vehicles and other electrified vehicles in and outside Japan. The company allocates JPY 6 billion for capital investment in facilities for new models and motor related parts in fiscal year 2018 (ending in March 2019). It will increase its production capacity for motor parts in FY 2019 at the earliest. While the company's mainstay includes exhaust system products and torque converters, Yutaka Giken will bolster its supply network for electrified vehicle motor parts, for which demand is rapidly growing, in an effort to expand its operations. It will look into the possibility of manufacturing these parts in China, as well as at its plant in Shizuoka Prefecture. (From an article in the Nikkan Jidosha Shimbun on May 21, 2018)
Planned Capital Investments |
(As of Mar. 31, 2018) |
| Name of company or subsidiary (Location) |
Type of facility | Planned amount of investment (million JPY) |
Start | Planned completion |
| Head Office YutakaPlant (Shizuoka Pref., Japan) |
Manufacturing facilities for automobile parts etc., other facilities | 3,493 | Mar. 2018 | Mar. 2019 |
| Mie Plant (Mie Pref., Japan) |
Manufacturing facilities for automobile parts | 1,132 | Jun. 2017 | Mar. 2019 |
| Ranzan Plant (Saitama Pref., Japan) |
Manufacturing facilities for automobile parts | 517 | Feb. 2018 | Mar. 2019 |
| Tochigi R&D Center (Tochigi Pref., Japan) |
R&D facilities | 528 | Apr. 2018 | Mar. 2019 |
| Cardington Yutaka Technologies Inc. (Ohio, USA) |
Manufacturing facilities for automobile parts | 936 | Apr. 2018 | Mar. 2019 |