OGURA CLUTCH CO., LTD. Business report FY2006
|In million JPY||FY2006||FY2005||Rate of Change (%)||Factors|
|Sales||50,840||48,609||4.6||- Sales of clutches for transportation equipment dropped 1.3 percent from what they were the previous year due to weaker domestic sales by Japanese automakers.|
|Operating income||1,210||133||809.8||- Income rose year-on-year supported by improved capacity utilization rates and profitability, as well as by the Company's cost reduction initiatives, which offset the loss that stemmed from soaring materials prices.|
Challenges for FY 2007
- The Company is faced with harsh conditions as GM and Ford, which are the major end users of its car air conditioner clutches, are losing their shares in the U.S. market. Since sales are continuing to fall from the peak year by year at Ogura Clutch's U.S. subsidiary, the Group's U.S. unit is working on winning new business, targeting Japanese automakers that are increasing their presence in the country.
- Ogura Clutch (Dong Guan) Co., Ltd., which is gradually improving its profitability, aims to increase its market share in China. Ogura Clutch (Dong Guan) was established in Dong Guan City, Guangdong Province, China to make car air conditioner clutches.
|(in millions JPY)||FY2006||FY2005||FY2004|
Electromagnetic clutch division/transportation-equipment clutch division
The Company was mainly involved in developing clutches used in air conditioners for motor vehicles and in developing torque limiters for lightweight clutches, silent clutches and external control compressors; power-saving clutches for hybrid vehicles and power cells; and clutches for vehicles equipped with the idle-stop feature.
In addition to above, the Company
worked on the following developments at the transportation-equipment
-Developing clutches for super-chargers and automobile reinforced clutches (at an affiliated company).
-Automotive power slide doors
-Clutches for trunk
-Developing PTO clutches for hybrid and electric automobiles.
-Developing brakes for differential locks and fan clutches.
The Company will strengthen its development activities by establishing a research and development section at the beginning of fiscal 2007. Staff in the new R&D section will carry out comprehensive studies on friction materials and production technology now carried out at several facilities. In line with this plan, the Company will construct a new building at its headquarters in Kiryu City, Gunma Prefecture to accommodate these functions. By integrating and disseminating to each of the company's facilities the know-how on developing and manufacturing clutches for automobiles and industrial machinery, the clutch supplier will strengthen its capability to develop leading-edge technology to make quality products that meet new needs and requirements in the industry. Also, the Company intends to initiate development of automotive friction components, which are not included in its product lineup at the moment. Construction work of the new facility and the integration of related functions will follow the planning and launch of concrete research projects. (From a story in the Nikkan Jidosha Shimbun on Mar. 29 2007)
|(in millions JPY)||FY2006||FY2005||FY2004|
|Transportation-equipment clutch division||396||624||1,104|
Transportation-equipment clutch division
- The Company focused its investment activities on measures to enhance environmental responsiveness, improve production equipment, streamline operations, and purchase new dies at the Akabori Plant and Kohbayashi Plant
New facilities (related to transportation-equipment clutches)
|Type of facility||Planned total investment (million JPY)||Starting month||Planned completion||Capacity increase upon completion|
|Ogura Clutch Co., Ltd.|
|Akabori Plant (Isezaki City, Gumma Pref., Japan)|
|Production facility for transportation-equipment clutches||529||Apr., 2007||Mar., 2008||Practically none, as this is to improve product quality|
|Kohbayashi Plant (Isezaki City, Gumma Pref., Japan)|
|Production facility for transportation-equipment clutches||130||Apr., 2007||Mar., 2008||Practically none, as this is to improve product quality|
|Ogura Techno Co., Ltd. Head office plant (Kitaibaraki City, Ibaraki Pref., Japan)|
|Production facility for transportation-equipment clutches and their parts||96||Apr., 2007||Mar., 2008||Capacity increase to raise the ratio of in-house production|
|Ogura Corporation Head office plant (Michigan, USA)|
|Production facility for transportation-equipment clutches and facility for sales and office duties||206||Jan., 2007||Dec., 2007||Capacity increase to raise the ratio of in-house production|
|Ogura Clutch do Brasil Ltda. Head office plant (Sao Paulo, Brazil)|
|Production facility for transportation-equipment clutches and facility for sales and office duties||16||Jan., 2007||Dec., 2007||Capacity increase to raise the ratio of in-house production|
|Ogura Clutch Malaysia SDN. BHD. Head office plant (Selangor, Malaysia)|
|Production facility for transportation-equipment clutches and facility for sales and office duties||2||Jan., 2007||Dec., 2007||Capacity increase to raise the ratio of in-house production|
|Ogura Clutch (Dong Guan) CO., LTD. Head office plant (Guang Dong, China)|
|Production facility for transportation-equipment clutches and facility for sales and office duties||44||Jan., 2007||Dec., 2007||Capacity increase to raise the ratio of in-house production|