HARADA INDUSTRY CO., LTD. Business report FY2008

Business Highlights

Financial Overview (in millions of JPY)
  FY2008 FY2007 Rate of Change(%) Factors
Sales 21,752 27,733 (21.6) -Unfavorable exchange rates and the global economic slump forced the Company to lose sales and cut production. As a result, its sales declined.
Operating income (101) 1,102 - -
Ordinary income (255) 703 - -
Net income (766) 561 - -
Automotive Components Division 
Sales 20,758 26,070 (20.4) -Its performance remained strong in Asia, but slowed in North America and Japan because of market depression and unfavorable exchange rates.
Operating income 34 1,125 (96.9)

Recent Developments Overseas
-The Company will establish a sales company, which also functions as an IPO (International Procurement Office) for the group, near Bangkok, Thailand. The entity, Harada Asia-Pacific Ltd., will be capitalized at 10 million bahts (approx. 26 million yen). The new unit is scheduled to be set up in the first half of FY 2009. It will sell automobile antennas and other products. (From a press release on Jan 23, 2009)

Financial Foredast for the Fiscal Year Ending in March 2010 (in millions of JPY)
  FY ending in Mar. 2009 FY ending in Mar. 2010 Comparison
Overall 21,752 17,900 (3,852)
Automotive Components Division 20,758 16,932 (3,826)

Sales by Geographic Area (in millions of JPY)
  FY ending in Mar. 2009 FY ending in Mar. 2010 Comparison
Japan 10,233 9,135 (1,098)
North America 7,675 5,786 (1,889)
Europe 1,608 1,285 (323)
Asia 1,953 1,449 (504)
Middle America 281 245 (36)


R&D Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 1,051 1,250 1,142
Automotive Components Division 923 1,135 975

R&D Activities
Automotive antenna business
- Current TV and radio broadcasting is being digitalized worldwide and the Company, which successfully developed ultra-compact connectors with built-in amplifiers, started mass production and delivery of these products.

-The Company has been active in sending engineers to auto manufacturers to further develop complex roof antennas and short pole-type roof antennas so as to improve the performance of these antennas. The engineers are also working on lowering the costs of amplifier modules used in glass antennas.  Also, the Company started development of glass antenna patterns, achieving some success. 

Next-generation automotive antenna business
-In response to growing needs from car makers for flat or integrated antennas, the Company began developing antennas for satellite radio receivers; and multi-function antenna systems for onboard, integrated telematics services.

Basic R&D activities
-The Company began developing concepts for future antennas such as active antennas and antennas using optic fibers, and collaborating with academic institutes and other corporations.

-To meet the current need for environmental protection, the Company is taking advantage of its capability to produce co-axial cables in-house, specifically by proposing fuel-saving solutions to automakers based on the advantages of its advanced products.

Investment Activities

Capital investment (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 536 979 622
Automotive Components Division 517 939 581

-Capital investments for the Automotive Components Division were spent to strengthen the Company's production and R&D facilities.