Jidosha Buhin Kogyo Co., Ltd. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY2006 Rate of Change (%) Factors
Sales 65,893 55,432 18.9 -Automotive parts business: Domestic demand for new trucks was lower than the year before, as substitute demand responding to the NOx and PM regulation has settled down. Nondomestic demand however, especially in resource-rich and emerging countries (excluding those in North America) were strong. Within such an environment, sales increased 11% year-on-year to 28,003 million yen. In terms of profit, even though the Company spent more money on programs to maintain or expand its sales and paid higher costs of materials, sales grew enough to offset this increased investment. As a result, operating income improved 12.2% to 1,814 million yen.
Operating income 3,623 2,968 22.0 -
Ordinary income 3,833 3,012 27.3 -Income grew, thanks to improved profitability resulting from lower material purchasing costs, improved productivity and reduced fixed costs.
Current net income 2,592 1,782 45.4 -

Challenges for FY2008
-To undertake activities that focus mainly on expanding sales of propeller shafts to diverse customer groups. 

-To retain its high level of product quality through further improving its R&D capabilities. 

-To make its products more competitive by implementing continuous cost reduction initiatives.

-To expand business overseas, with a primary focus on the Asian region. etc.


-R&D expenses for FY2007 were 416 million yen.

Development structure
-Under its partnership with JBK Services, which mainly involves R&D activities, the Company is jointly researching and developing automotive parts used in diverse powertrains.

-Part of the activities in advanced technological products are being conducted jointly with Isuzu. 

Engine parts
-R&D expenses for FY2007 were 41 million yen.

-Based on support provided by Isuzu to develop improvements in productivity and quality, the Company is operating as a manufacturing facility producing industrial engine assemblies for Isuzu, as well as conducting evaluations on engine performance based on an outsourcing agreement with Isuzu.

Automotive parts
-R&D expense for FY2007 were 374 million yen

-Development was carried out both on various propeller shafts for pickup truck transmissions to increase higher torque output and on various power takeoffs designed to match the type of body, as well as cam gears, rocker arm and flywheels.

-Because the Company has promoted their business to receive awards from automobile makers which with they never had business together in the past, it has been developing large and small propeller shafts to suit the needs of new customers.

Technology import (As of March 2008)
Licenser Licensed technology Contract term
Eaton Corporation (U.S.A.) Manufacturing technologies for no-spin differentials Apr.16, 2006-Apr.15, 2009

Investment Activities

-Capital investment for FY 2007 was 2,738 million JPY.

Engine parts business
-Investment at the engine parts business totaled 1,147 million yen, which was focused on increasing capacity to manufacture parts used in industrial machinery engines. 

Automotive parts division
-Investment at the automotive components division reached 1,590 million yen, which was focused on increasing capacity to manufacture propeller shafts, flywheel and rocker arm assemblies, and upgrading aging facilities.

New facilities (Automotive parts business)
Name Location Type of facility Planned total  investment
(in million yen)
Construction start month Planned completion month
Head Office/ Ebina Plant Kanagawa Pref., Japan Processing equipment for power transmission parts, etc. 505 Apr., 2008 Mar., 2009
Processing equipment for power transmission parts, etc. 2,600 Apr., 2008 Mar., 2009
Mooka Plant Tochigi Pref., Japan Processing equipment for engine parts, etc. 1,030 Apr., 2008 Mar., 2009
P.T. Jibuhin Bakrie Indonesia  Karawan, Indonesia Processing equipment for engine parts, etc. 90 Jan., 2008 Dec., 2008
Jibuhin (Thailand) Co., Ltd. Chonburi, Thailand Processing equipment for power transmission parts, etc. 75 Jan., 2008 Dec., 2008