Riken Corporation Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change(%) | Factors | |
Overall | ||||
Sales | 66,476 | 80,909 | (17.8) | - |
Operating income | 2,009 | 245 | 720.0 | - |
Ordinary income | 4,002 | 482 | 730.3 | - |
Current net income | 2,322 | (1,118) | - | - |
Automotive/Industrial Machinery Component Division (excludes transactions among divisions) |
||||
Sales | 54,801 | 67,627 | (19.0) | -Orders declined because vehicle production had not yet been fully recovered. |
Operating income | 730 | (1,377) | - | - |
>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Group | 1,086 | 1,542 | 1,576 |
Automotive/Industrial Machinery Component | 765 | 1,168 | 1,393 |
R&D Structure
-The R&D Division, Ring Technology Development Division, and Product Development and Engineering Technology sections under each manufacturing division, are in charge of the Company's R&D activities.-The Next-Generation Product Planning Division inaugurated its planning activities with the aim of creating new products in areas with high growth potential such as hybrid and electric vehicles.
R&D Activities
-Automotive/Industrial Machinery Component1. Low friction and long-lasting gasoline-engine piston rings that lower fuel consumption
2. Diesel engine piston rings to meet requirements for low fuel consumption and emission regulations.
3. Valve parts, transmission sealing rings
4. Various surface treatment technology that enables a high degree of high sliding performance
5. Light- weight and high-strength chassis parts
Licensing of technology to other companies
(As of Mar. 31, 2010)
Company name | Country | Contract | Contract date | Contract period |
Taiwan Riken Ind. Co., Ltd. | Taiwan | Manufacturing methods for various forged steel engine components such as piston rings, cylinder liners, blocks and pistons | Aug. 22, 2005 | Terms for extending the agreement are subject to negotiation |
Siam Riken Ind. Co., Ltd. | Thailand | Manufacturing methods for piston rings and other forged steel engine components | Apr. 19, 2009 | 5 years |
P. T. Pakarti Riken Indonesia | Indonesia | Manufacturing methods for joint and forged parts | Jan. 1, 2006 | 5 years |
Shriram Pistons & Rings Ltd. | India | Manufacturing methods for piston rings | Mar. 1, 2007 | 7 years |
Allied Ring Corp. | USA | Manufacturing methods for piston rings | Sep. 1, 1989 | 5 years |
Grede Foundries, Inc. | USA | Manufacturing methods for ductile forged components | Jul. 17, 2005 | by July 16, 2007 |
Manufacturing methods for lower control arm | Jul. 23, 2001 | 8 years from the start of delivery of mass produced products | ||
Manufacturing methods for Sheet parts | Sep. 16, 2003 | 8 years from the start of delivery of mass produced products | ||
Korea Piston Ring Inc. | Korea | Manufacturing methods for piston rings | Mar. 1, 2010 | 5 years |
Xiamen Riken Ind. Co., Ltd. | China | Manufacturing methods for piston rings | Aug. 1, 1999 | by July 31, 2010 |
Manufacturing methods for camshafts | Oct. 1, 2004 | by Sep. 30, 2010 | ||
Riken Automobile Parts (Wuhan) Co., Ltd. | China | Manufacturing methods for piston rings, seal rings, valves and other cast iron products. | Mar. 1, 2005 | 10 years |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Group | 2,620 | 6,292 | 7,208 |
Automotive/Industrial Machinery Component | 2,326 | 5,469 | 6,334 |
Automotive/Industrial Machinery Component Division
-Investments were made in equipment for research and development related to engine testing and for increasing production of valve lifters.
Planned Capital Investment
(As of Mar. 31, 2010)
Company Office (Location) |
Purpose | Planned investment amount (in millions of JPY) | Starting | Estimated completion | Production capacity increase upon completion |
New addition | |||||
Kashiwazaki Plant (Niigata Prefecture, Japan) |
Installing production facilities for making piston rings | 450 | Apr. 2010 | Oct. 2011 | No effect on production capacity |
P. T. Pakarti Riken Indonesia Head office plant (Surabaya, Indonesia) | Installing new equipment to produce auto parts | 620 | Apr. 2010 | Oct. 2011 | Production capacity increased by 25% |
Refurbishment | |||||
Kashiwazaki Plant (Niigata Prefecture, Japan) |
Installing production equipment to manufacture piston rings and other automotive components | 250 | Apr. 2010 | Oct. 2011 | No effect on production capacity |
P. T. Pakarti Riken Indonesia Head office plant (Surabaya, Indonesia) | Installing new equipment to produce auto parts | 300 | Apr. 2010 | Oct. 2011 | No effect on production capacity |