Yasunaga Corporation Business Report FY2011

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change
Sales 36,314 36,445 (0.4) -
Operating income 1,175 2,770 (57.6) -
Ordinary income 1,055 2,494 (57.7) -
Net income 882 1,728 (49.0) -
Engine components business
Sales 25,085 25,635 (2.1) -Sales and operating profit were both lower year-on-year, first due to the impact on business caused by the Great East Japan Earthquake and then by the flooding in Thailand. Furthermore, the recovery in production by OEMs was at a minimum, as the Company faced increased expenses in line with the launch of a new production line and maintenance and repair work.
Operating profit 1,201 1,749 (31.3)

New Company

-The Company, which is constructing a new plant in Korea, is going to step up marketing for its engine products in the country. Up until now, the Company has been manufacturing products for the Korean market in Japan, but the operation will soon be transferred to a new local facility the Company is currently constructing. Switching to local production will allow the Company to improve its cost efficiency, while it aims to increase sales of cylinder heads and other engine parts to GM Korea (formerly called GM Daewoo Auto and Technology), its major customer. It is also targeting other automakers in Korea that are exporting their vehicles to North America and elsewhere. The company is investing approximately 1.5 billion yen in the new plant in Iksan, Jeollabuk-do. A 21,000-square-meter factory on 82,000 square meters of land is expected to be completed soon as the first phase of the construction project. The Korean production base will become the largest in scale among the Company's worldwide facilities. The Company intends to start commercial production and deliveries of cylinder heads, cylinder blocks and connecting rods as early as the fall of this year after conducting trials when the production lines are finished. (From an article in the Nikkan Jidosha Shimbun on March 21, 2012)


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 563 407 327

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 4,040 1,519 1,322
Engine components business 3,219 1,109 1,093

Engine components business
-The Company invested in machinery, equipment, tools and fixtures for the purpose of upgrading and acquiring new items for its home office plant, Saimyoji Plant, Yume Polis Plant, Nabari Plant, Casting Plant, P.T. Yasunaga Indonesia, and others in order to respond to new product orders.

Investment Outside Japan

-Yasunaga Korea Co., Ltd., its new wholly owned subsidiary in Korea, will set up a manufacturing facility in Iksan, Jeollabuk-do with an investment amount of approximately 1.5 billion yen. The 21,540 square meter facility will manufacture engine parts such as cylinder heads, cylinder blocks, connecting rods, supplying them to Korean automakers. Construction is scheduled to start in September 2011 and be completed in April 2012. (From a press release on July 12, 2011)

Planned Capital Investments (Engine components business related)

(As of Mar. 31, 2012)
Purpose Planned investment
(in million
Start Planned completion Increased capacity upon completion
Yume Polis Plant
(Mie Pref., Japan)
Engine Components Production facilities 700 July
24% increase in production capacity
Yasunaga Korea Co., Ltd. Engine Components Production facilities 1,077 Sept.