G-TEKT Corp. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) |
Factors | |
Sales | 53,791 | 65,922 | (18.4) | Sales decreased year-on-year due to the following factors: -a decline in sales of vehicle parts in Japan and North America -losses from negative currency translation |
Operating Income | 3,065 | 4,260 | (28.1) | - |
Ordinary Profit | 3,220 | 3,473 | (7.3) | - |
Net Income | 2,134 | 1,806 | 18.2 | - |
Recent Developments in Japan
-The Company started producing components for use in new vehicles such as the Step Wagon, the Spada, and the Legacy.-The Company started partial production at its Saitama Plant in Fukaya City, Saitama Prefecture, at the end of Sep. 2009. The Company has transferred portion of welding and assembling work of automotive body parts at its plant in Hamura City, Tokyo, into this facility. From now on, the Company will install additional equipment such as stamping and welding machinery in the site to make preparations for full-scale production. (From a press release on October 28, 2009)
Recent Developments Outside Japan
<North America>Austin Tri-Hawk Automotive Inc.
-This facility started mass-producing auto body parts for the new Honda Legacy, in addition to increasing its production volume.
Kikuchi USA Inc.
-This company was liquidated at the end of March 2010.
Jefferson Industries Corporation
-This facility started mass-producing auto body parts for the Honda Crosstour.
Jefferson Southern Corporation
-Production of auto body parts for the Honda Accord V6 was transferred to this facility.
Jefferson Elora Corporation
-This facility started mass-producing auto body parts for the Toyota RAV4 and Corolla.
-It also launched production of auto body parts for the Honda Acura ZDX.
<Latin America>
Kikuchi do Brasil Ltda.
-This facility started mass-producing auto body parts for the Honda City.
<China>
Auto Parts Alliance (China) Ltd.
-Operations using a new 1,000-ton TRF stamping machine began.
-This facility expanded its parts assembly plant and established a new warehouse to store stamping dies.
-It started mass-producing auto body parts for the Honda Odyssey and the Toyota Highlander.
-It launched production of auto body parts for the Honda Crosstour.
-It also launched production of auto body parts for the Nissan Vanette.
Wuhan Auto Parts Alliance Co., Ltd.
-Operations using a new 600-ton stamping machine started.
-This facility started mass-producing auto body parts for the Honda Spirior.
-This company purchased a piece of land for building an additional facility.
Conghua K&S Auto Parts Co., Ltd.
-This facility started production of products for Aisin based on a OEM agreement.
-The company is making preparations to start mass production of products for program business it won from Toyo Tire & Rubber, Tokai Rubber Industries, and Hino Motors.
<India>
Global Auto Parts Alliance India Private Ltd.
-Operations using 3,000-ton TRF, 800-ton, and 250-ton stamping machines began.
-This facility started commercial production of auto body parts for the Honda Jazz.
Restructuring
-The Company announced that it will close its Suzuka Plant, Suzuka, Mie Pref., Japan as of Aug. 20. Honda's auto body components are welded and assembled there. The closure has been decided because its products will be discontinued due to Honda's product line revision. The employees will be relocated to other plants and a part of its production facilities will be transferred to other production lines. (From an article in the Nikkan Jidosha Shimbun on July 30, 2009)>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Outlook for FY2010 |
(in millions of JPY) |
FY2010 (forecast) |
FY2009 (actual) |
Year-on-year Fluctuation | |
Sales | 56,700 | 53,791 | 2,909 |
Operating income | 4,100 | 3,065 | 1,035 |
Ordinary income | 4,000 | 3,220 | 780 |
Net income | 2,000 | 2,134 | (134) |
Sales by Geographic Area |
(in millions of JPY) |
FY2010 (forecast) |
FY2009 (actual) |
Year-on-year Fluctuation | |
Japan | 27,000 | 25,720 | 1,280 |
North America | 5,200 | 4,111 | 1,089 |
South America | 7,400 | 6,820 | 580 |
Asia | 18,000 | 17,953 | 47 |
R&D
R&D Expenditure |
(in millions of JPY) |
FY 2009 | FY 2008 | FY 2007 | |
Overall | 264 | 350 | 416 |
R&D Structure
-Research and development of new products and technology are conducted mainly at the Development Section of the Development Division. The following business units are also developing products for new vehicle models by working closely with their customers:-the Production Engineering Department of the KEPS Division;
-the Precision Technology Section of the Precision Parts Division; and
-the Business Development Section of the Sales Division.
-Eighteen engineers work at the Product Development Section as of March 2010.
R&D Activities
-Major R&D activities and achievements FY20091.Study to expand application to mash seam welding body parts
2.Study to expand application to body parts made of high tensile steel materials.
3.Study to expand injection simulation technology.
4.Study to reduce weight and increase strength of CVT parts.
5.Study to use information technology for making metal dies.
6.Study to apply technology of high-frequency hardening to steel plate materials.
Technology Contract Offered by the Company
(As of Mar. 31, 2010)
Partner | Country | Details | Period |
Jefferson Industries Corporation | USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2003.10.01-2006.09.30 automatic extension every year thereafter |
Jefferson Elora Corporation | Canada | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1997.03.31-2002.03.30 automatic extension every 5 years thereafter |
Jefferson Southern Corporation | USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2001.05.31-2006.05.30 automatic extension every year thereafter |
Austin Tri-Hawk Automotive Inc. |
USA | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1998.01.25-2001.01.24 automatic extension every year thereafter |
Kikuchi Do Brasil Ltda |
Brazil | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 1997.05.30-2002.05.29 automatic extension every year thereafter |
Auto Parts Alliance (China) Ltd. |
China | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2006.10.26-2011.10.25 |
Wuhan Auto Parts Alliance Co., Ltd. |
China | Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs | 2005.07.01-2010.06.30 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 8,513 | 11,684 | 15,656 |
-During 2009, the Company invested mainly in acquiring land and production equipment for its new facility in Saitama, in installing equipment to produce components for new vehicle models, and in increasing its production capacity in China.
Planned Capital Investments
(As of Mar. 31, 2010)
Plant | City | Equipment to be installed | Estimated amount of investment (in millions of yen |
From | To |
Saitama Plant | Fukaya City, Saitama Pref. |
Equipment for manufacturing auto parts (stamping and welding equipment) | 643 | Apr. 2010 | Mar. 2011 |
Equipment for manufacturing auto parts (dies, jigs and tools) | 2,019 | - | - | ||
Kikuchi Do Brasil Ltda. | Sao Paulo, Brazil | New facility | 301 | Jan. 2010 | Dec. 2010 |
Equipment for manufacturing auto parts (stamping and welding equipment) | 650 | Jan. 2010 | Dec. 2010 | ||
Auto Parts Alliance (China) Ltd. | Guangzhou, Guangdong Province, China. | New facility | 414 | Jan. 2010 | Dec. 2010 |
Equipment for manufacturing auto parts (stamping and welding equipment) | 870 | Jan. 2010 | Dec. 2010 | ||
Equipment for manufacturing auto parts (dies, jigs and tools) | 796 | - | - |