I Metal Technology Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 30,791 48,800 (36.9) -
Operating income (1,345) 573 - -
Ordinary income (1,692) 168 - -
Net income (1,497) (1,549) - -
Automotive component
Sales 27,637 41,138 (32.8) -In the latter half of the year, demand for auto components had been slightly better than expected, thanks to increased production of vehicles exported mainly to Asia, and to a surge in sales in Japan encouraging consumers to buy large-size vehicles before the post new long-term emission regulation went into effect. However, in the first half of the year, demand for commercial vehicle components grew only at a slow pace, as the company did not gain much benefit from the Japanese government’s green car tax credit system. On the whole, the company’s sales declined for the year.

Business in Japan

-The Company announced that it will reorganize its auto parts production operations. The Company will consolidate its existing three production facilities to two by closing down its Ayase Plant in Ayase City, Kanagawa Prefecture, which is handling cutting and assembly of automotive components. The Ayase Plant's production lines will be moved to its Tsuchiura Plant in Tsuchiura City, Ibaraki Prefecture. The Company plans to launch this project in the middle of Nov., start the transfer work in Jan. 2010, and complete the production transfer by the end of June 2010. The Company also make structural changes based on the consolidation so as to establish a fully integrated production system from raw materials to processing. (From an article in the Nikkan Jidosha Shimbun on Nov. 7, 2009)


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 342 396 351

R&D Structure

-The Company's technical center in Kitami began development activities on and functional testing of materials used in parts designed for high-powered diesel engines.
-The Company conducted R&D activities in Tsuchiura on vehicles and construction machinery components.

Investment Activities

Capital Investment

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall Approx. 1,000 Approx. 8,900 Approx. 4,200

Investments in Japan

Kita Ibaraki No.2 Forging Plant
-A new, second forging plant is now under construction in Kita Ibaraki City, Ibaraki Prefecture. The project is designed to expand and rationalize the Company’s forging capacity. The company invested 130 million yen in the project.

Reorganizing parts facility
-The Ayase Plant was closed down and its equipment was transferred to the Tsuchiura Factory. The Ayase Plant's closure was part of the Company’s restructuring plans that aim at achieving greater business efficiency. The company invested 85 million yen in the project.

Other investments
-The Company invested a total of 826 million yen mainly in renovating its casting equipment and enhancing processing facilities.