Sanoh Industrial Co., Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) |
Factors* | |
| Overall | ||||
| Sales | 130,627 | 104,786 | 24.7 | -Vehicle production increased overseas. -Sales of plastic products increased significantly after the Company acquired Geiger Automotive GmbH and added it to its consolidated financial statements. -Sales of tubes for chassis and brazing parts for engine systems increased. -Sales of seatbelt components declined. |
| Operating income | 5,840 | 4,612 | 26.6 | - |
| Ordinary income | 5,123 | 4,774 | 7.3 | - |
| Net income | 1,577 | 2,188 | (27.9) | - |
| Sales by Segment | ||||
| -Japan | 38,193 | 41,275 | (7.5) | -A decline in vehicle sales in Japan |
| -North and South America | 41,861 | 34,488 | 21.4 | -The Company received new orders, as vehicle demand recovered. A weak yen also boosted sales. |
| -Europe | 24,446 | 6,080 | 302.1 | -Adding Geiger Automotive GmbH to the Company’s consolidated financial statements. |
| -China | 10,345 | 8,987 | 15.1 | -A new plant began operating. |
| -Asia | 15,781 | 13,956 | 13.1 | -The Company started supplying products based on new orders received in India and Indonesia. |
* Plastic parts: Quick connectors, Plastic tubes etc.
Tubes for chassis: Tubes for brakes, fuel systems etc.
Brazing parts: Fuel injector parts, Water circulation parts, Oil cooler parts etc.
Expanding production of fuel injection rails for direct injection engines
-The Company will expand production of fuel injection rails for direct injection engines. Along with current production in China and Mexico, the Company will also start manufacturing fuel injection rails in Japan in 2016, to raise the production volume to 10 million units or more in 2020, approximately six times larger than the amount produced in 2015. Direct injection engines improve fuel efficiency and reduce exhaust gas emissions of vehicles, and they are expected to be more prevalent worldwide. For 2020, the Company aims to have a 25% share in the global market of fuel injection rails for direct injection engines. (From an article in the Nikkan Jidosha Shimbun on June 3, 2015)
Contracts
-The Company has received an order for its plastic air shutter guides from a German automaker in Mexico. The plastic functional component is a product of Geiger Automotive GmbH (in Bayern, Germany) which the Company acquired in 2013. The product will be produced at Sanoh's plant in Mexico and supplied to a local plant of the German automaker. The Company acquired GEIGER specializing in plastic components in order to expand its business with major European automakers. The acquisition is likely to have a positive effect on Sanoh's earnings at an early stage, as the Company started receiving new orders. An air shutter guide is located between a radiator grille and a radiator to shut off the airflow underneath the running vehicle body as needed. By shutting off the airflow, the air shutter guide improves aerodynamic performance and prevents the engine from being cooled too much. This shortens the engine warm-up time and improves heating performance. (From an article in the Nikkan Jidosha Shimbun on November 26, 2014)
Award
-The Company announced that it has received the 2013 VFG (Vehicle Function Group) Excellence Award from Mitsubishi Motors Corporation in recognition of its cost reduction activities. (From a press release on June 27, 2014)
Outlook for FY ending Mar. 2016 |
(in million JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ending Mar. 31, 2015 (Actual Results) |
Rate of Change (%) | |
| Sales | 133,000 | 130,627 | 1.8 |
| Operating income | 6,100 | 5,840 | 4.5 |
| Ordinary income | 5,500 | 5,123 | 7.4 |
| Net income | 2,500 | 1,577 | 58.6 |
-Major factors (sales):
- Sales increase in Americas and Asia
- Sales decrease in Japan and Europe
-Major factors (operating income):
- Sales increase in Americas. Harvesting from new plant in China
- Sales decrease in Japan
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 2,965 | 2,394 | 2,094 |
R&D Activities
New Mid-/Long-term Management Plan: GOAL 15
-The Company revised its mid-term management plan from FY2012, taking into consideration various aspects such as the current state of global affairs and possible future developments. It created a new, mid-term/long-term management plan called GOAL 15.
-The fiscal year that ended March 2015 was the final year of the GOAL 15 plan and the year to prepare a new mid-term business plan. The Company developed environmentally friendly, lighter weight automotive parts a new, energy-saving production method, and advanced 30 initiatives to create products and technology in order to launch new lines of business for value-added products and new products.
Developing lightweight auto parts
-European OEMs and other automakers are increasingly shifting to plastics for fuel injection rails, fuel tubes, filler pipes and other powertrain components and fuel systems parts. Under such circumstances, the Company acquired Geiger Automotive GmbH, a Germany-based plastic components supplier in October 2013, and established a sales and development office for its plastic product business in Europe.
Developing high value-added products
-The Company is promoting the development and mass-production of high value-added components. These products include high-pressure fuel injection rails for direct injection engines, ultra high-pressure fuel injection tubes for diesel engines, heat-exchange components used around inverters and batteries, plastic fuel tubes, and composite parts for engine cooling systems and EGR systems.
Investment Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Japan | 2,205 | 2,158 | 1,953 |
| North and South America | 2,964 | 2,466 | 2,838 |
| Europe | 721 | 263 | 200 |
| China | 1,155 | 1,404 | 673 |
| Asia | 875 | 1,338 | 1,226 |
| Group | 7,919 | 7,629 | 6,889 |
Investments in FY ended Mar. 31, 2015
-Investments were focused on improving productivity and renewal of equipment.