Kyowa Leather Cloth_Business Report FY2008
Business Highlights
| Financial overview | (in million JPY) |
| In million JPY | FY2008 | FY2007 | Rate of Change (%) | Factors |
| Sales | 30,665 | 39,505 | (22.4) | Sales of automotive products decreased due to a substantial decline in demand; as well as to the Company's liquidating Kyowa Leather Cloth U.S.A. Inc. |
| Ordinary income | (1,026) | 1,604 | - | Despite the Company's efforts to improve its business structure and revise products prices, ordinary income decreased as a result of a dramatic decline in sales of automotive products and a significant increase in the prices of materials and fuel in the first half of the fiscal year. |
| Current net income | (942) | 964 | - | - |
R&D
| R&D Expenditure | (in million JPY) |
| - | FY2008 | FY2007 | FY2006 |
| R&D Expenses |
603 | 537 | 365 |
Development agendas of the automotive interior business were:
-The Company is developing new, synthetic-leather materials that contribute to enhancing the quality of vehicles.
-The Company is working to improve upon and develop product technology that takes into consideration factors such as weight reduction, ease of recycling, lowered costs, environmental protection, and greater comfort for passengers.
Investment Activities
| Capital Expenditure | (in million JPY) |
| FY2008 | FY2007 | FY2006 | |
| Amount of investment |
1,210 | 1,688 | 1,639 |
-The Company focused its investments in the following two areas: installing exhaust gas reduction treatment devices at its 2nd Tenryu Plant; and making cost reductions.
New Facility (abstract)
| Main Products | Total Amount Invested (millions of yen) |
Started | Expected to Complete in: | Increased Capacity after Completion |
| 1st Tenryu Plant | ||||
| Interior leather materials (for vehicles, furniture, shoes and general merchandise) | 179 | Apr., 2009 | Mar., 2010 | No increase (initiated for rationalization purposes only) |
| 2nd Tenryu Plant | ||||
| Composites for molding and making synthetic leather (for vehicles, furniture, shoes and general merchandise) | 135 | Apr., 2009 | Mar., 2010 | No increase (initiated for rationalization purposes only) |
| Shinshiro Plant | ||||
| Composites for molding, and other products (for automotive use) | 232 | Apr., 2009 | Mar., 2010 | No increase (initiated for rationalization purposes only) |
| Head Office | ||||
| R&D facilities | 195 | Apr., 2009 | Mar., 2010 | No increase because they are R&D facilities. |