Kokusan Denki Co., Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
Change (%)
Sales 21,897 23,396 (6.4) -Sales of automobile motors fell year-on-year, being affected by a slowdown in sales of Japanese products in China.
Operating income 249 218 14.2 -Operating income increased year-on-year due to effective cost-cutting initiatives such as reducing procurement costs, and to changes to and expense outlays for its production structure, in line with developments involving production operations.
Ordinary income 536 424 26.4 -
Net income 329 232 41.8 -
Electrical Products Division
Sales 11,928 13,170 (9.4) -Sales were lower year-on-year as a result of demand for electric generators after the Great East Japan Earthquake running full circle, and due to customers adjusting their inventories downward for some products.
Operating income 870 1,032 (15.7) -
Motor Division
Sales 9,969 10,226 (2.5) -Sales of automotive motors, its core product line, were negatively impacted by the huge slowdown in sales of Japanese products in China, with growth waning.
Operating income (66) (299) - -

New Wing for Production Technology Department

-In May 2013, the Company held a ceremony to celebrate the completion of the second phase of a construction project to build a new wing at its Production Technology Department's building located at its head office in Numazu. The Technology Department, Prototype Department, and Testing Lab, which moved into the new wing, have already started conducting their R&D activities. (from a company press release)

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


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 251 233 228
Electrical Products Division 133 142 153
Motor Division 111 90 74

R&D Activities

Electrical Products Division
-Continually working to develop optimal ignition and fuel-injection systems for engines.

Motor Division

-Developing mechatronics products by applying technology on automotive control motors.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,177 909 756

Capital Investments in FY ended Mar. 31, 2013
-The Company made investment in establishment of a rationalized production line for electrical 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 578 Electrical components rationalization facilities, etc.
Motor Division 599 Preparing new motor production lines to respond to vehicle model changes

Planned capital investments

(As of Mar. 31, 2013)
Site name Location Type of facility and activities Planned investment amount
(million yen)
From To
Headquarters factory Shizuoka Pref., Japan Streamlining motor production operations 26 Apr. 2013 Nov. 2013
-Investment in FY ending Mar. 2014 is estimated to be 180 million yen.