Riken Corporation Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 74,932 | 71,543 | 4.7 | -Sales increased year-on-year due to an increase in orders outside Japan and the impact of favorable currency translation, which more than offset the negative impact of the Company’s realigning its product range in Japan. |
Operating income | 5,805 | 4,721 | 23.0 | - |
Ordinary income | 7,286 | 6,078 | 19.9 | - |
Current net income | 4,544 | 3,645 | 24.7 | - |
Automotive/Industrial Machinery Component Division | ||||
Sales | 61,799 | 59,565 | 3.8 | - |
Operating income | 4,842 | 3,940 | 22.9 | - |
Business Partnership
-The Company and Georg Fischer Automotive AG have signed a license and partnership agreement on July 1 regarding Riken's use of the Swiss company's "SiboDur," an iron alloy. The Japanese automotive parts supplier is now licensed to manufacture and sell the material in Japan and ASEAN countries. This will allow the Company to make thinner and lighter products by using SiboDur to optimize specific parts. The two companies intend to promote mutual use of their production sites and establish a flexible supply network to correspond with their customers' individual needs in the global market. (From an article in the Nikkan Jidosha Shimbun on August 22, 2013)Proposing use of aluminum
-The Company will expand the application of its extrusion technology of quench-solidified aluminum alloy powders. This technology is currently used in forged parts for car air conditioners and valve retainers for motorcycles. Riken intends to apply the technology to produce aluminum parts which can replace metal parts including engine valves. The Company will propose this technology to automotive parts suppliers as a means to reduce the weight of forged parts significantly. (From an article in the Nikkan Jidosha Shimbun on February 5, 2014)>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall | 1,550 | 1,299 | 1,347 |
-Automotive/Industrial Machinery Component | 1,527 | 1,105 | 1,233 |
R&D Structure
-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 in the Automotive/Industrial Machinery Component Business are conducted by the R&D Department, Piston-ring Technological Development Department, Piston-ring Production Technology Department, and the product development and production technology sections at each of the manufacturing divisions.
R&D Activities
-Automotive/Industrial Machinery Components1. 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. Low-friction automotive and industrial machinery seal parts, designed to lower fuel consumption
4. Light-weight, low-friction, automotive and industrial machinery valves
5. Surface treatment technology that responds to all kinds of surfaces, and which enhances the gliding properties of products.
6. Light-weight, high-strength suspension parts
7. High-strength aluminum-made products demonstrating excellent durability
-The Company unveiled a lightweight brake disk rotor at the 43rd Tokyo Motor Show. The rotor is 10% thinner than that of a conventional brake disk rotor, which reduced the weight of the component by more than 7%. The thinner rotor is expected to reduce raw material and production costs. Riken succeeded in reducing the brake disk rotor's weight and strengthening the rotor by mixing special additives with FC200 and FC250 grade cast iron. Meanwhile, the Comapny also enlarged the fin and improved both the heat removal properties and durability of the rotor. The Company will start producing the brake disk rotor in Indonesia and other countries and will supply it to Japanese automakers in 2015. (From an article in the Nikkan Jidosha Shimbun on December 3, 2013)
Technology licensing-out Agreement |
(As of Mar. 31, 2014) |
Company name | Country | Contract | Contract date | Contract period |
Taiwan Riken Ind. Co., Ltd. | Taiwan | Manufacturing methods for various cast iron engine components such as piston rings, cylinder liners, blocks, cam shafts, and knuckles | Aug. 22, 2008 | 9 years |
Siam Riken Ind. Co., Ltd. | Thailand | Manufacturing methods for piston rings and other cast steel engine components | Apr. 19, 2009 | 5.5 years |
P.T. Pakarti Riken Indonesia | Indonesia | Manufacturing methods for joint and cast iron parts | Jan. 1, 2006 | 10 years |
Shriram Pistons & Rings Ltd. | India | Manufacturing methods for piston rings | Mar. 1, 2014 | 7 years |
Allied Ring Corporation | USA | Manufacturing methods for piston rings | Jan. 1, 2014 | 3 years |
Grede Holdings LLC | USA | Manufacturing methods for knuckles and damper forks | Aug. 17, 2010 | 5 years |
Manufacturing methods for lower control arms | Aug. 17, 2010 | 5 years | ||
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 | 15 years |
Manufacturing methods for camshafts | Oct. 1, 2004 | 10 years | ||
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 |
Riken Mexico, S.A. De C.V. | Mexico | Manufacturing methods for valve lifters | Sep. 1, 2013 | 5 years |
Investment Activities
Capital Expenditure |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Overall | 5,943 | 4,899 | 2,848 |
-Automotive/Industrial Machinery Component | 5,610 | 4,439 | 2,653 |
Automotive/Industrial Machinery Component Division
-The Company invested in machining and surface-treatment facilities at its own plants in general; and in casting facilities at its subsidiary in Indonesia.
Planned Capital Investments |
(As of Mar. 31, 2014) |
Company Office |
Location | Purpose | Planned investment amount (in million JPY) |
Kashiwazaki Plant | Niigata Prefecture, Japan | Installing production facilities for making piston rings and auto parts | 1,850 |
Riken Mexico, S.A. De C.V. | Aguascalientes, Mexico | Installing new equipment to produce auto parts | 492 |
P.T. Pakarti Riken Indonesia | Sidoarjo, Indonesia | Installing new equipment to produce auto parts | 849 |