Company Info
Aichi Steel Corporation Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of change (%) |
Remarks | |
| Overall | ||||
| Sales | 217,279 | 227,478 | (4.5) | -Overall, sales were lower year-on-year due to the drop in demand for steel materials used in the non-automotive sector. This was in spite of higher sales year-on-year for automotive forged products, supported by strong demand in the automotive sector. |
| Operating income |
7,332 | 8,458 | (13.3) | - |
| Ordinary income |
7,929 | 7,925 | 0.1 | - |
| Net income | 4,898 | 4,246 | 15.4 | - |
| Sales by Segment | ||||
| Steel | 104,223 | 127,362 | (18.2) | -Revenue was lower due to a drop in sales volumes and lower product selling prices. |
| Forged products | 98,030 | 87,423 | 12.1 | -Revenue was higher due to an increase in sales volumes. |
| Electromagnetic products | 11,242 | 9,085 | 23.7 | -Revenue was higher due to an increase in sales volumes of electronic products and magfine magnets. |
Outlook for FY ending Mar. 31, 2014 |
(in millions of JPY) |
| FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
| Sales | 238,000 | 217,279 | 9.5 |
| Operating income | 7,500 | 7,332 | 2.3 |
| Ordinary income | 7,000 | 7,929 | (11.7) |
| Net income | 4,500 | 4,898 | (8.1) |
>>> Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
| Steel | 2,416 | 2,378 | - |
| Forged products | 167 | 205 | - |
| Electromagnetic products | 1,013 | 753 | - |
| Total | 3,597 | 3,337 | 2,776 |
R&D Structure
-The Company has about 200 employees engaged in R&D as of March 31, 2013.R&D Activities
Steel business-The following were the main R&D results achieved:
- R&D on steel used for high-strength conrods, which help improve fuel efficiency.
- New-product development on steel for environmentally friendly gear wheels, which requires fewer resources, offering a good balance between product strength and lowering/eliminating alloys (MO, Cr-free). It is well suited to customers' new production processes, i.e., inline carburization.
-The following were the main R&D results achieved:
1) Greater efficiency and lower costs for hot-forging processes
- High-speed, automated forging of CVT shafts
- High-speed, automatic, multi-cavity manufacture of small-sized crank shafts
- Low-energy, low CO2 discharge heat-treatment furnace
- Forming high-precision inner splines
-The following were the main R&D results achieved:
- Utilizing injection molding technology on dysprosium-free, neodymium anisotropic bonded magnets magfine, and applying it to motors.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
| Steel | 3,952 | 6,361 | - |
| Forged products | 5,995 | 3,480 | - |
| Electromagnetic products | 227 | 793 | - |
| Others | 98 | 15 | - |
| Total | 10,272 | 10,649 | 20,528 |
Steel
-Rationalizing and renewing manufacturing facilities, etc., making them environmentally compliant.
Forged products
-Invested to enhance production capacity; and streamline, maintain, and renew production facilities
Electro magnetic products
-Enhancement of production capacity, etc.
Investment Outside Japan
<Thailand>
-The Company held a ceremony to celebrate the completion of its new plant in Chonburi, Thailand. As a new base of Aichi International (Thailand) Co., Ltd. (AIT), its production subsidiary, it has established full-scale production operations from forging, machining through delivery inspection. The AIT has a plant in Chonburi without a forging process, which has imported forged parts from other countries for shipping. To prepare for the full-scale operations, it installed new forging facilities and transferred all the processes of machining and inspection from the existing plant. The new plant will begin a full-scale mass production in June and the old plant will be gradually closed. The Company plans to utilize the new plant as a core base in Asia to supply forged parts. The site is 101,000 m2 with the building area of 16,000 m2. (From an article in the Nikkan Jidosha Shimbun on May 12, 2012)
Planned Capital Investment |
(As of Mar. 31, 2013) |
| Name (Location) |
Type of business |
Type of facility |
Planned investment (in millions of JPY ) |
Start | Completion | Production capacity upon completion |
| Chita Plant (Aichi Pref., Japan) |
Steel etc. | Facilities for producing steel, rolling equipment, etc. | 3,192 | Jul. 2010 |
Aug. 2014 |
*1 |
| Kariya Plant (Aichi Pref., Japan) |
Steel | Rolling equipment, etc. | 1,027 | Sep. 2010 |
Mar. 2015 |
*1 |
|
Forging Plant |
Forged products | Facilities for producing forged products | 6,159 | Sep. 2011 |
Oct. 2015 |
*1 |
| Higashiura Plant (Aichi Pref., Japan) |
Electro magnetic products etc. | Facilities for producing products using magnets, etc. | 146 | Mar. 2006 |
Mar. 2015 |
*1 |
| Gifu Plant (Gifu Pref., Japan) |
Electro magnetic products | Facilities for producing electronic functional materials and components | 112 | Jul. 2012 |
Mar. 2014 |
*1 |
| Seki Plant (Gifu Pref., Japan) |
Electro magnetic products | Facilities for producing products using magnets | 199 | Aug. 2011 |
Feb. 2014 |
*1 |
| Electronic Components Plant (Aichi Pref., Japan) |
Electro magnetic products | Facilities for producing electronic functional materials and components | 953 | Dec. 2011 |
Mar. 2015 |
*2 |
*2：Information on production capacity after the facilities are completed is not provided because of the difficult in making objective assessment on output.
Japan
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