KOITO MANUFACTURING CO., LTD. Business report FY2006
Business Highlights
Financial overview
(in million JPY) | FY2006 | FY2005 | Rate of Change (%) | Factors |
Overall | ||||
Sales | 452,520 | 397,509 | 13.8 | - Sales marked a record-high figure, thanks to favorable business worldwide at the Company's key business of automotive lighting. |
Operating income | 21,328 | 22,262 | (4.2) | - |
Ordinary income | 24,600 | 25,640 | (4.1) | - |
Current net income | 13,374 | 12,731 | 5.1 | - |
Automotive lighting-related | ||||
Sales | 477,585 | 417,833 | 14.3 | Domestic business: - Sales increased year-on-year because of increasing OE applications of advanced lighting systems such as high intensity discharge headlamps, adaptive front lighting systems (AFSs), LED rear combination lamps, and headlamp leveling systems. Overseas business: - Sales also rose outside Japan, as the Company won new business to supply headlamps and signal lamps to North America, Europe, China and Thailand. |
Operating income | 21,870 | 23,264 | (6.0) | |
Other businesses (Manufacture of automotive components, other than lighting devices) | ||||
Sales | 34,181 | 27,838 | 22.8 | - Sales also increased at the Company's other businesses, besides its lighting devices business, thanks mainly to increased sales of seats and other components for the aircraft industry, and more demand for automotive headlamp cleaners. |
Operating income | (187) | 1,255 | - | - The Company posted an operating loss due to increased costs for preparing production lines to manufacture new aircraft seats. It was also affected by soaring materials prices. |
Domestic Business
Koito Kyushu Co., Ltd., a new facility in Saga City, Saga Prefecture,
launched production in October 2006.
>>>See Capital Investment
for more details
Overseas Business
Guangzhou Koito Automotive Lamp Co., Ltd. in Guangzhou, China
became operational in March 2007.
New equipment installment (Selected)
>>>See Capital Investment
for more details
Sale of Joint Venture in Korea
The Company announced that it will divest its entire holdings
of Innovative Hightech Lighting Corp. (IHL), its joint venture
in Korea, to its partner, Hyundai Mobis Co., Ltd., a company of
Hyundai Kia Automotive Group. The Company will basically withdraw
from Korea by this decision. This will also terminate its technical
support contract with IHL. There seems to have been a disagreement
between the Company and Hyundai Group, which requested the Company
of expanding IHL overseas along with Hyundai Group's growing overseas
production. IHL was established in 1997 as a Japan-Korea joint
venture and produced automotive lamps for Korean automakers.(From
an article in the Nikkan Jidosha Shimbun on Mar. 1, 2007)
New Contracts
The Company won from two German
automakers supply awards for its next-generation head lamps. The
Company will supply to Audi high intensity discharge head lamps
for its new sport utility vehicles, which will be released in
2008; and head lamp units to Porsche for the Carrera and the Boxster-models
slated for complete makeovers in 2009. This is the first time
for the Company to win business from Audi. The Company says it
has already launched design-in activities for the lamps with both
companies. The volume and amount of each contract are under wraps.
(From an article in the Nikkan Jidosha Shimbun on Nov. 6, 2006)
New Medium-term Business Plan
The Company revised upward the consolidated sales in its five-year
medium-term business plan for fiscal 2010 to 520 billion yen,
up 20 billion yen. Behind this revision there is an expected increase
in global vehicle production at 74 million units, up 9 million
compared with 2005 record, as well as an establishment of its
Kyushu plant designated as the Company's export center, and an
order increase over the medium term which has been becoming obvious
due to the strengthening of production bases in Europe, the U.S.
and Asia. Unconsolidated sales of the Company will be raised by
10 billion yen to 240 billion yen. Considering an expansion in
the installation rate of high value-added products such as high
intensity discharge head lamps, advanced front lights with movable
headlamps and light axis and the headlamp leveling system, the
Company predicts a bigger increase in both sales and profit margin
than that of the sales volume. (From a story in the Nikkan Jidosha
Shimbun on May 15, 2006)
R&D
R&D
Investment Activities
The total amount of capital investments
made during FY2006 was 34,489million yen.
In Automobile lighting related business, 33,283 million yen was
invested in its facilities to increase production capacity in
response to both new products and model changes of vehicle manufacturers,
improve product quality, rationalize its production, and reduce
costs.
Domestic Investments
The Company announced production start-up of Koito Kyushu
Co., Ltd., its new plant in Saga City, Kyushu, Japan. Headlamps
and rear combination lamps are produced and their annual production
volumes will be raised to the level of 1 million units each by
2009. Currently 300 employees are hired, which will be increased
to 800 in three years. (From an article in the Nikkan Jidosha
Shimbun on Oct. 5, 2006)
Overseas Investments
The Company started discussions on a new headlamp production facility
in North America. With its new rear combination lamp plant (No.4
plant in North America) now preparing for a production launch
in the middle of 2007, the company's No.5 plant in the region
is likely to be constructed on the site of its plant in the Muscle
Shoals Industrial Park in Alabama, U.S.A. within the next few
years. Planned amount of investment in this project is 2.4 billion
yen. The Company decided to build an additional factory because
its existing headlamp production facility (No.2 plant) is already
approaching its capacity limit. Despite the overall decline in
vehicle production in the U.S. due to slumping sales by American
automakers including GM and Ford, the Company projects that local
production by major Japanese car makers, its main customers, will
grow steadily. (From an article in the Nikkan Jidosha Shimbun
on Dec. 26, 2006)
The Company announced that Guangzhou Koito Automotive Lamp Co.,
Ltd., its wholly owned subsidiary in China, has started operations
at its new plant in Guangzhou City, China. The Company's third
Chinese facility will have the capacity to make 500,000 headlamps
and rear combination lamps annually for supply to local plants
of Toyota Motor Corporation and other automakers. Guangzhou Koito
Automotive Lamp Co., Ltd., established in November 2005, has invested
approximately 4.5 billion yen in constructing the new plant with
a total floor area of 18,000 square meters on an 80,000 square
meters land. Approximately 300 workers were hired at the new plant.
Sales at Guangzhou Koito Automotive Lamp are expected to reach
2.6 billion in fiscal year ending in March 2007.(From an article
in the Nikkan Jidosha Shimbun on Mar. 6, 2007)
New equipment installment (Selected)
Company / Plant | Equipment to be introduced | Estimated amount of investment (in million JPY) |
Project Period | |
From | To | |||
Shizuoka Plant (Shizuoka, Japan) |
Manufacturing equipment for automotive lamps, etc | 5,001 | Apr. 2007 |
Mar. 2008 |
Haibara Plant (Shizuoka, Japan) |
Manufacturing equipment for automotive lamps, etc | 5,570 | Apr. 2007 |
Mar. 2008 |
Sagara Plant (Shizuoka, Japan) |
Manufacturing equipment for automotive lamps, etc | 1,266 | Apr. 2007 |
Mar. 2008 |
Koito Kyushu Ltd. | Manufacturing equipment for automotive lamps, etc | 4,068 | Mar. 2007 |
Mar. 2008 |
North American Lighting
Inc. (Illinois, USA) |
New plant Manufacturing equipment for automotive lamps, etc |
6,303 | Mar. 2007 |
Mar. 2008 |
Shanghai
Koito Automotive Lamp Co., Ltd. (Shanghai, China) |
Manufacturing equipment for automotive lamps, etc | 2,996 | Mar. 2007 |
Mar. 2008 |
Thai Koito Campany
Limited (Samutprakarn, Thailand) |
New plant Manufacturing equipment for automotive lamps, etc |
1,576 | Apr. 2007 |
Mar. 2008 |