Ashimori Industry Co., Ltd. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY2006 Rate of Change (%) Factors
Sales 45,653 43,204 5.7 -The Company expanded the scope of its business by reinforcing its sales operations and developing new markets based on promoting new products. As a result, its sales grew.
Operating income 2,134 1,666 28.1 -Soaring prices of crude oil and materials were offset by group-wide cost-cutting efforts, which contributed to the increase in operating income.
Current net income 901 491 83.5 -
Industrial fabric product business
Sales 39,319 36,835 6.7 -In the automotive safety parts division, sales of airbags were down due to the reduced volume of production of some vehicle models that were undergoing  changes. Sales of seat belts increased with the Company's launching mass-production of them based on new orders it received. Sales of other automotive parts such as those equipped in cabin interiors were also brisk in and outside Japan. 
Operating income 2,717 2,131 27.5

Trend outside Japan

-The Company announced that it will dissolve its joint venture contract with Delphi Corp., U.S.A. It will sell all its shares in the two joint ventures producing automobile seatbelts in the U.S. and Mexico and will liquidate their holding company. The two companies plan to continue their parts business alliance in the area of automotive safety even after the dissolution. With Delphi, the Company had signed the business alliance contract in August 1999 and the joint venture contract on automotive seatbelt manufacturing and sales in 2000. (From an article in the Nikkan Jidosha Shimbun on Nov. 8, 2007)


-R&D expenses for FY2007 were 1,086 million yen.

-Out of the total, 861 million yen was spent on R&D activities at its industrial fabric business.

Seatbelt products
-The Company is working on developing seat belt retractors with pretensioners that improve the strength of the initial restraining force; and buckles with G-proof mechanisms to be installed as standard equipment.

Airbag products
-The Company is in the process of developing passenger-side air bag systems, which can inflate at reduced risked to passengers and which are compliant with a new U.S. standard; knee airbag systems which protect legs; and high-performance side airbags.

Investment Activities

-Capital investment in FY 2007 was 1,885 million yen.

-Out of the total amount, the investment made for industrial fabric products was 1,592 million yen
Capital investment was mainly spent on the Osaka plant on revamping manufacturing of automotive related products, increasing production facilities and development related facilities.

New facilities
Segment by business type Purpose Planned investment  (in million yen Starting Month Completing Month Capacity increase on completion
Osaka Plant (Settsu City, Osaka, Japan)
Fire extinguisher fabric products business

Industrial fabric products business
To rationalize production facilities for fire extinguisher fabric, paltem, industrial fabric and automotive safety equipment 2,754 April, 2006 March, 2008 Practically none as this is to improve quality