Asahi Tec Corporation Business Report FY ended Mar. 2012
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | Rate of change (%) | Factors | |
Overall | ||||
Sales | 80,848 | 73,022 | 10.7 | - |
Operating income | 3,440 | 2,337 | 47.2 | -Overall financial performance rose year-on-year due to: (1) an improvement in profitability that resulted from the continued cost-cutting measures that the Company has been initiating, and (2) the strong increase in sales revenues. |
Ordinary income | 3,238 | 1,766 | 83.4 | - |
Net income | 1,319 | 155 | 751.0 | - |
Ductile business | ||||
Sales | 51,452 | 42,889 | 20.0 | -Both operating revenue and profit at the Ductile business improved year-on-year due to the robust demand for trucks and construction equipment in developing countries, and due to the tremendous increase in program business that the Company was awarded from new customers. |
Operating income | 2,080 | 1,620 | 28.4 | |
Aluminum business | ||||
Sales | 26,104 | 24,386 | 7.0 | -Even though the Great East Japan Earthquake and the flooding in Thailand negatively impacted the Company's aluminum business, both operating revenue and profit increased year-on-year, thanks to the significant increase in business the Company was awarded from new customers, and to the recovery in demand that occurred after the Earthquake and flooding. |
Operating income | 870 | 274 | 217.5 |
Contracts
-The Company announced that Techno-Metal (TMK), its wholly owned subsidiary in Nihonmatsu City, Fukushima Prefecture, has been awarded a contract from Ssangyong Motor in Korea to supply cylinder blocks. This is the first time for the automotive cast and forged parts supplier to deliver its products to a Korean company. When TMK initially accepted an order from Ssangyong for installation on a single model, the business was estimated to be worth 1 billion yen a year. After the delivery began, Ssangyong has asked for additional supply for its other vehicle model, placing a high value on the excellent product qualities. Volume of transaction is thereby expected to exceed the projection. (From an article in the Nikkan Jidosha Shimbun on June 30, 2011)Joint Ventures
-The Company announced its plan of a joint venture with Rockman Industries Ltd for light alloy business in India. Rockman Industries, based in New Delhi, India, manufactures components such as aluminum die-casting products, and aluminum wheels and chains for motorcycles. (From a press release on February 10, 2012)-The Company announced on June 28 that it has increased its stake in its aluminum wheel joint venture in China. The company has invested additional 300 million yen in Guangzhou Wheelhorse Asahi Aluminum Co., Ltd. (WAA), raising its shareholding ratio in the entity from 30 percent to 49 percent. In line with the expansion, WAA is going to double its production capacity from the current 1.5 million units to 3 million units by 2013. Currently, 60 to 70 percent of approximately 1.5 million aluminum wheels produced at WAA are exported to Japan. (From an article in the Nikkan Jidosha Shimbun on June 29, 2011)
Outlook for FY ending Mar. 31, 2013 |
(in millions JPY) |
FY ending Mar. 31, 2013 (Forecast) |
FY ended Mar. 31, 2012 (Actual Results) |
Rate of Change (%) |
|
Sales | 84,000 | 80,848 | 3.9 |
Operating income | 3,300 | 3,440 | (4.1) |
Ordinary income | 2,500 | 3,238 | (22.8) |
Net income | 1,900 | 1,319 | 44.0 |
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Ductile business | 28 | 31 | - |
Aluminum business | 84 | 77 | - |
Parts business | - | - | 286 |
Total | 112 | 128 | 315 |
R&D Activities
Ductile business-In order to the respond to the risks involved with procuring rare-earth metals, the Company is researching into substitute materials.
-The Company is conducting R&D into production technology related to its core products (complicated-shaped parts), for which demand is forecast to rise in line with the growth in the transportation-equipment/machinery market.
Aluminum business
-The Company is mass producing products by putting to practical use its technology that improves engine performance. Specifically, it is applying its Asahi Tech Surface Treatment (AS Treatment), technology that smoothes the inner surfaces of products. And since the Company could see the progress it has been making in significantly improving products' fatigue strength by adding residual stress to the materials interiors, it is continuing its development activities by gathering detailed data on specific applications.
-The Company is developing an even lighter aluminum wheel by combining its proprietary, two-gate, low-pressure casting method with its flow-form technology.
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Ductile business | 1,751 | 1,342 | - |
Aluminum business | 2,570 | 1,669 | - |
Parts business | - | - | 1,050 |
Other | 74 | 147 | 54 |
Total | 4,395 | 3,158 | 1,104 |
Ductile business
-The Company invested mainly to renew and maintain its facilities and equipment for the purpose of rationalizing its production operations; and to install new machining equipment in order to produce products required by newly acquired customers.
Aluminum business
-The Company invested mainly in its consolidated subsidiary in Thailand, Asahi Tec Aluminium (Thailand) Co., Ltd., to enhance and increase machinery and equipment so they can be used to produce products required by newly won customers; and to improve and increase production facilities producing dies and other products.
Planned Capital Investments |
(As of Mar. 31, 2012) |
Company Office |
Location | Business segment Equipment to be installed |
Estimated amount of investment (in millions of JPY) | From | To |
The Company Toyokawa Plant |
Aichi Pref., Japan |
Earthquake re-inforcement | 185 | Mar. 2012 |
Mar. 2013 |
Casting facilities | 359 | Feb. 2012 |
Aug. 2012 |
||
Techno-Metal Co., Ltd. Kitamoto Plant |
Saitama Pref., Japan |
Machining facilities | 325 | Feb. 2011 |
May. 2012 |
Techno-Metal Co., Ltd. Nihonmatsu Plant |
Saitama Pref., Japan |
Forging facilities | 333 | Jan. 2012 |
Sep. 2012 |
Asahi Tec Aluminium (Thailand)Co., Ltd. Bang Pakong plant |
Chonburi, Thailand |
Machining facilities | 134 | Mar. 2012 |
Apr. 2013 |
167 | Dec. 2011 |
May. 2012 |
|||
66 | Dec. 2011 |
Apr. 2012 |