Yasunaga - Business Report FY2008

Business Highlights

Financial Overview (in million JPY)
  FY2008 FY2007 Rate of Change
Sales 34,070 39,207 (13.1) Affected by a sharp decline in production volume due to substantial reduction of production by automakers, sales and income decreased despite the Company's efforts to reduce labor and general costs and to ensure profits.
Operating income 406 3,044 (86.7)
Ordinary income (131) 2,809 -
Net income (1,956) 1,704 -
Engine components business
Sales 23,551 28,792 (18.2) While the Company selected strategic products such as connecting rods, cylinder heads and cylinder blocks and continued to focus on these, sales substantially decreased due to automaker's decreased production in response to a sharp drop in demand.
Operating income (68) 2,278 -

Business plan
-The Company revealed its second mid-term business plan, which begins from April 2008 and ends in March 2011.

-Consolidated targets
(ended in Mar. 2011)
Sales 50 billion yen
Operating income 4 billion yen
Profit margin About 8%
(Return on equity)
13% or more
Equity capital ratio 40% or more


R&D Expense (in million JPY)
  FY2008 FY2007 FY2006
Overall 248 234 269
Engine components business 2 - -

Investment Activities

Capital Expenditure (in million JPY)
  FY2008 FY2007 FY2006
Overall 2,829 1,383 2,675
Engine components business 2,648 1,202 2,514

Capital investment (Engine components business - fiscal year ended March 2009)

-The Company invested 1 billion 440 million yen in machinery and equipment, tools, fixings and parts at its Headquarters Plant, Nabari Plant, Casting Plant and Yume Polis Plant with the primary objectives of rationalization, labor saving and quality improvement of production facilities. 

-The Company invested 1 billion 171 million yen in facilities including machinery and equipment at its consolidated subsidiary, P.T. Yasunaga Indonesia, mainly in order to respond to new orders received.

New facilities (Engine components business related)
Purpose Planned total investment
(in million
Start Planned completion Increased capacity upon completion
Yasunaga Corporation
Nabari Plant
(Mie Pref., Japan)
To acquire, renew and renovate buildings 130 Sep.
Yume Polis Plant
(Mie Pref., Japan)
To acquire,  remodel, and refurbish machinery 786 Jun.
44% increase in production capacity
*1: The increase in capacity is minimal, as the purpose of the capital investment is to update, renovate and rationalize production facilities in order to handle a change in production items as well as to improve product quality.