Kokusan Denki Co., Ltd. Business report FY2008

Business Highlights

Financial Overview (in millions of JPY)
  FY2008 FY2007 Rate of Change (%) Factors
Sales 19,109 23,516 (18.7) -Total sales decreased as a result of rapid sales decline in December onward.
Operating income (722) 576 - -Operating and ordinary income decreased with the sales decrease and soaring materials prices put pressure on gross operating profit.
Ordinary income (530) 676 -
Net income 17 359 (95.3) -
Electric Products Division
Sales 11,447 13,570 (15.6) -Sales and operating income decreased as a result of production adjustment due to the slump of the North American markets for motor-cycle, ATV and utility engines, which were the Company's main products.
Operating income 14 659 (97.9)
Generator Division
Sales 1,070 1,484 (27.9) -Sales and operating income decreased because demand for engine generators, the Company's main product, did not recover in the North American market.
Operating income (106) 56 -
Motor Division
Sales 6,591 8,461 (22.1) -Sales and operating income decreased because sales of power steering motors for 4WD vehicles and ABS motors, the Company's main products, decreased as a result of production adjustment by main customers due to sluggish sales in the automobile market.
Operating income (168) 289 -


R&D Expenditure (in millions of JPY)
  FY2008 FY2007 FY2006
Electrical Products Division 131 213 195
Generator Division 20 14 10
Motor Division 65 67 67
Others 9 25 34
Total 227 319 306

R&D Activities
Electrical Products Division
-The Company worked in the area of, namely highly efficient, high-output AC generators and regulators. The Company improved its ignition and fuel injection systems by getting them to fit as optimally as possible in engines. 

-The Company worked on developing and commercializing charging systems and engine control systems used in motorcycles, ATVs, snowmobiles, outboard boat motors, and utility engines.

Generator Division
-Under the aim of achieving energy savings, size reductions, improved efficiency, and noise reductions, the Company is working not only on developing new sales wins but also on increasing current volumes of high quality inverter generators based on one of its areas of core competencies, permanent-magnetic generators.

Motor Division
-Working under the objective of saving energy, the Company is currently developing small sized, highly efficient, low cogging motors for automobiles. It is also developing small-sized ABS motors that are being made more convenient to install.

-The Company is developing and promoting sales of motors and drivers to motorize more components to be used in motor cycles and special purpose vehicles.

Investment Activities

Capital Investment (in millions of JPY)
  FY2008 FY2007 FY2006
Overall 578 737 1,228

-The Company made investment in establishment of a rationalized production line for electric products, rationalization of facilities to save energy and introduce IT, and installation of new molds to allow the Company to respond to orders for new products and to update old facilities.

The Major Investments on Mechanical Equipment (in millions of JPY)
Segment Amount Main facilities
Electrical Products Division 243 Electric components rationalization facilities, etc.
Motor Division 17 Motor production line

Capital Investment Plans
(As of Mar. 2009)
Site name Location Type of facility and activities Planned investment amount (million yen) Commencement and
completion Month/Year


Headquarters factory
Shizuoka Pref., Japan Motor production and rationalizing facilities 382 Oct. 2009 Dec. 2009
Gotemba factory
Shizuoka Pref., Japan Electric component production; and rationalizing facilities 44 July, 2009 Mar. 2010