I Metal Technology 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 (%) Factors
Sales 48,124 52,937 (9.1) -
Operating income 606 809 (25.1) -
Ordinary income 495 702 (29.5) -
Net income 298 248 20.2 -Deduction of expenses for taxes

Consolidating Operations with I Metal Technology Co., Ltd. and Jidosha Buhin Kogyo Co., Ltd.

-The Company, Jidosha Buhin Kogyo Co., Ltd. and TDF Corporation announced that they (the three companies) reached an agreement to consolidate their operations through establishing a joint holding company by jointly transferring their equity shares.
-The new joint holding company, which is named IJT Technology Holdings Co., Ltd., is headquartered in Minato-ku, Tokyo and capitalized at 5.5 billion yen. Isuzu Motors will own 41% of the outstanding stock shares, making the holding company its subsidiary.
-The three companies will become wholly owned subsidiaries of IJT Technology Holdings.
-The three companies did not foresee much prospect for demand in Japan over the long term. Plus, with the emergence of strong OEMs in developing countries and with the extremely tough price competition in the market, the three companies decided that it would be better to consolidate each of their own management resources and technical expertise into one entity, in order to remain viable and develop their businesses while mutually cooperating and supplying to each other.


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 307 313  357

R&D Structure

-The Company has technical center in Tsuchiura City, Ibaraki Prefecture and Kitakami City, Iwate Prefecture. 

R&D Activities

Development of Elemental Technology
-In order to respond to changes in the material characteristics of scrap-metal, which is the main component of casting materials, the Company studied the effects on trace elements included in casted items, along with establishing methods for evaluating materials and studying ways to deal with them.
-The Company is working on developing high-strength and heat-resistance/fatigue resistant materials for the purpose of making lighter-weight engine parts; and developing processing methods in order to enhance the castability and machinability of brake parts.

New Product Development
-The Company is increasing the types of suspension parts produced that use RD800, a high-strength, high-ductility material that the Company developed; and increasing production of hydraulic valves and turbine housings, which are core components of construction machinery and automobiles.
-The Company is designing products using a 3-dimentional analysis system, i.e. thermal fluids, stress, and solidification analysis, in order to establish technology that leads to weight reduction, and to significantly reduce the weight of cast products using high-precision molds cast from large-sized, rapid-prototype machines.

Investment Activities

Capital Investment

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 2,200 1,300 2,400

-Capital investments were made to install more facilities and equipment and strengthen and upgrade R&D functions.

Investments Outside Japan

-The Company announced that its equity-method affiliate, PT. Asian Isuzu Casting Center, will double its casting production capacity to 3,500 tons per month by 2014. In accordance with this expansion, I Metal Technology plans to increase its capital in Asian Isuzu Casting Center to make the affiliate become its consolidated subsidiary. I Metal Technology's ownership interest in Asian Isuzu Casting Center will rise to 51 percent from the current 22.5 percent. (From a press release on February 12, 2013)