JTEKT Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of
Sales 955,470 769,682 24.1 -Sales increased 24.1% year-on-year, thanks to sales incentives in Japan designed to stimulate the economy, and mainly to the economic recovery in China, Southeast Asia, and North America.

Operating income 39,924 425 9293.9 -In addition to recording greater sales for the year, the Company implemented various cost-cutting measures such as optimizing its purchasing prices and improving its productivity and efficiency.
Ordinary income 40,263 (252) -
Current net income 20,052 (19,413) -
Mechanical Components Division
Sales 828,962 678,446 22.2 -Due to increased sales of vehicles and greater demand for industrial-equipment bearings, the Company sold more steering systems, bearings, and drivetrain products.
Segment income 34,529 10,229 237.6 -


-The Company announced that it is supplying an electronically controlled 4WD coupling, which is called the Intelligent Torque Controlled Coupling (ITCC), for the Nissan Juke compact sport crossover vehicle. The ITCC is incorporated into Nissan's ALL MODE 4x4-i with Torque Vectoring. By variably controlling torque distribution ratio between front and rear wheels within the range of 100:0 - 50:50, the ITCC achieves improved fuel efficiency and excellent traction performance at the same time. (From a press release on December 7, 2010)

-3-section propeller shaft has been chosen for the Suzuki Kizashi all-wheel drive models. The division into three sections, a feature enabled by a joint assembly with two center bearings, will help achieve optimized anti-vibration properties regardless of the overall length of the shaft. (From a press release on September 3, 2010)

Joint Ventures

-The Company and Wafangdian Bearing Group Corporation (ZWZ) signed a letter of intent to establish a 50-50 joint-venture company to produce and sell automotive bearings in China. ZWZ is a bearing manufacturer based in Wafangdian, Liaoning Province, China. JTKET and ZWZ have been collaborating in production and sales of wheel bearings in China through Dalian Koyo Wazhou Automobile Bearing Co., Ltd. (KWA), their joint venture since 1995. The two companies will now form a new company to produce bearings for engines, transmissions, and wheels, targeting not only automakers based in Japan, Europe, and the U.S.A, but also those based in China. The total investment in the new company is planned to reach approximately 1 billion yuan (approximately 12.5 billion yen). Signing of the joint-venture agreement is planned to take place in the next three months. (From a press release, September 28, 2010)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Outlook for FY2011

(in billions of JPY)
Year-on-year Fluctuation
Sales 960,000 955,470 4,530
Operating income 45,000 39,924 296
Ordinary income 45,000 40,263 5,076
Net income 24,000 20,052 3,948


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  31,938 27,410 29,056

R&D Facilities in Japan

Facility Location
R&D center Nara Pref., Osaka Pref., Aichi Pref.
Electric Systems Development Center Okazaki, Aichi Pref.

R&D Activities

The Company established JRDC as its technical center in China for the purpose of strengthening its R&D capabilities in the country.

-The Company and Tongji University of China have agreed to establish a joint research center within the premises of the university located in Shanghai. The new facility, which will be called the "Joint Research Laboratory for Automotive Active Safety Technology", will specialize in research activities on active safety technologies by integrating JTEKT's expertise in the area of automotive steering systems, bearings, drivetrain products, as well as advanced element technologies and systems technologies into Tongji University's cutting-edge infrastructure technologies. The period of the joint venture project, which covers the period between October 2010 and September 2013, may by be extended if required. (From a press release on October 13, 2010)

 Steering Systems Division
-The Company developed electric-pump-driven hydraulic power steering systems incorporating energy-reduction technology; and column-type electric power steering systems based on technology making them smaller, lighter and quieter. These are being installed on customers’ vehicles.   
-For compact cars, the Company developed column-type electric power steering systems, succeeding in making them 10% lighter in weight compared to conventional steering systems.
- For high-end sports cars, the Company developed column-type electric power steering systems, which are being equipped on customers’ vehicles.
-For SUVs, the Company developed a hydraulic powered steering system with a VFC (Variable Flow Control) pump that controls the amount of flow when the steering system is not in use, thus reducing the amount of energy required.
-The Company developed a low-cost but extremely quiet column-type electric power steering system for developing-country markets.

Bearing & Drivetrain Divisions
-The Company developed a hub-unit bearing with a built-in seal that achieves ultra-low torque specifications and has already started supplying it to auto-makers. By reducing the amount of contact resistance due to the ingenious shape of the contact area of the lip on the seal, the Company achieved lowering the rate of fuel consumption by about 0.2%.
-The Company created a needle bearing that offers superior features such as tough abrasion resistance and high-speed spin, developing it as an automatic transmission gear support bearing.

Product Development

Hub Unit Integrated with a Sensor
-Developed a hub unit integrated with a sensor for detecting the tire force. A thin type loading sensor integrated in the hub unit is reputed to be capable of measuring the tire force (force generated by tire) with high precision, which is expected to contribute to enhancing safety and maneuverability of a vehicle. JTEKT is poised to construct an original vehicle control system combined with its active steering mechanism and system to distribute driving power between right and left in an attempt to expand application of the thin type loading sensor to other purposes. (From an article in the Nikkan Jidosha Shimbun on November. 16, 2010)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 30,850 25,248 51,104
Mechanical Components Division 27,321 22,432 44,204

New Equipment Installations

(As of Mar. 31, 2011)

Plant  Location  Type of facility  Estimated amount of investment
(in million JPY) 
Project Period
From To
Kagawa Plant Higashikagawa, Kagawa, Japan Facility for manufacturing mechanical components 6,600 Apr.
Kokubu Plant Osaka,
Facility for manufacturing mechanical components 5,800 Apr.
JTEKT Iga Proving Ground Iga City, Mie pref., Japan Proving Ground 3,000 Jun.
Daibea Co., Ltd.
Head Office & Izumi Plant
Aichi Pref.,
Facility for manufacturing mechanical components 1,000 Apr.
Koyo Corporation of U.S.A. South Carolina,
Facility for manufacturing mechanical components 5,100 Jan.