Ashimori Industry Co., Ltd. Business report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Operating income||1,022||2,134||(52.1)||-Soaring prices of oil and raw materials pushed up the Company's material costs and its sales declined in the latter half of the year.|
|Current net income||(1,109)||901||-|
|Industrial fabric product business|
|Sales||37,448||39,319||(4.8)||-The Automotive Safety System Division, Seatbelt Section, suffered greatly from sharp declines in sales in the automotive industry in the third and fourth quarters. However, in the first half of the year its mass production for new cars started and its sales increased as a whole. Sales of airbags and other automotive components, including interior parts, declined due to production cuts.|
Recent Developments in Japan
-The Company established Ashimori Industry Yamaguchi, a wholly-owned subsidiary to manufacture and sell car seatbelts, airbags, and interior components in Yamaguchi City, Yamaguchi Prefecture. The new company was formed as of July 16, 2008. The Group decided to strengthen its production structure in the area by setting up a new company, as it is winning increased business from the car industry. The creation of the new facility will also allow the Group to diversify risk in case of disaster or other emergency situations. (From an article in the Nikkan Jidosha Shimbun on Aug. 6, 2008)
|R&D Expenditure||(in millions of JPY)|
|Industrial fabric product business||1,065||861||710|
-For enhanced occupant protection, the Company went ahead with development and commercialization of seat belt retractors fitted with a pretensioner that provides next-generation high initial restraint performance and seat belt buckles equipped with an anti-G mechanism.
-The Company went ahead with development of a high performance front air bag system that meets requirements for low risk deployment in North America and Europe. It also went ahead with development and commercialization of a side air bag system with enhanced occupant protection.
-For higher added value, it went ahead with development and commercialization of several types of shades and interior covers.
|Capital Investment||(in millions of JPY)|
|Industrial fabric product business||1,864||1,592||1,638|
-The investment made for industrial fabric products was mainly spent on the Osaka plant on revamping manufacturing of automotive related products, increasing production facilities and development related facilities.
| Name of Company/Plant
|Purpose||Planned investment (in million yen)||Starting Month||Completing Month||Capacity increase on completion|
(Settsu City, Osaka, Japan)
|To rationalize production facilities for fire extinguishing fabric, paltem, industrial fabric and automotive safety equipment||3,374||April, 2008||March, 2010||Practically none as this is to improve quality|
(Sasayama, Hyogo Pref.)
|To rationalize production facilities for fire extinguisher fabric, paltem, industrial fabric and automotive safety equipment||82||April, 2008||March, 2010||Practically none as this is to improve quality|