Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of change(%)	Factor
Overall
Sales	46,938	50,148	(6.4)	-
Operating income	3,573	37	9,556.8	-
Ordinary income	4,120	(129)	-	-
Net income	4,069	(1,744)	-	-
Automotive parts division
Sales	43,446	45,944	(5.4)	-Sales decreased as a result of a decline in automotive production worldwide.
Operating income	3,315	(50)	-	-Operating income increased as a result of the Company's initiatives to reduce costs.

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Automotive parts	162	106	104

 

R&D Activities

1) Development of technology to make lighter products
-Automakers are demanding lighter weight products in order to improve fuel consumption. To respond to such requests, the Company is working reduce the weight of its seals by using resin and utilizing better foaming technology.
-The Company started mass-production of glass run channels in fiscal year 2009, which ended in March 2010. The Company changed the material used in these runners, from rubber to TPE (Thermal Plastic Elastomer), and used foam in the framework. As a result, the weight was reduced by about 30%.

2) Development of technology to reduce noise
-The Company is applying its technology in the area of foaming to further reduce the noise levels in its existing products. It is also developing improved noise-insulating products.

3) Development of technology to comply with environmental needs
-The Company started researching next-generation materials for seals for possible use in environmentally friendly vehicles such as electric vehicles. It also is working on developing materials that are plant based. 

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	2,091	5,493	8,120
Automotive parts business	2,004	5,238	7,830

Automotive parts business

-The Company invested mainly to prepare facilities for producing new seals and to improve facilities as an investment for streamlining operations to reduce costs.

 

New Equipment Installations

Plant	Equipment to be introduced	Estimated amount of investment (million JPY)	Project Period
			From	To
Nishikawa Rubber
Shiraki Plant (Hiroshima, Japan)	-Manufacturing equipment for automotive seals -Components for general industry	378	Dec. 2009	Mar. 2011
Asa Plant (Hiroshima, Japan)	-Manufacturing equipment for automotive seals -Components for general industry	708	Dec. 2009	Mar. 2011
Yoshida Plant (Hiroshima, Japan)	-Manufacturing equipment for automotive seals and interior/exterior components -Manufacturing equipment for exterior walls for housing	440	Dec. 2009	Mar. 2011
Mihara Plant (Hiroshima, Japan)	-Manufacturing equipment for automotive door seals. -Manufacturing equipment for exterior walls for housing	478	Dec. 2009	Mar. 2011
Others	-Buildings and R&D equipment and others	396	Sep. 2009	Mar. 2011
Domestic subsidiaries
Nishikawa Bussan (Hiroshima, Japan)	-Manufacturing equipment for automotive seals -Manufacturing dies	200	Apr. 2010	Mar. 2011
Seiwa Kougyo Co., Ltd. (Hiroshima, Japan)	-Manufacturing equipment for automotive seals -Components for general industry	64	Jan. 2010	Mar. 2011
Nishikawa Big Ocean Co., Ltd. (Hiroshima, Japan)	-Manufacturing equipment for automotive seals	78	Nov. 2009	Mar. 2011
Nishikawa Rubber Yamaguchi (Yamaguchi, Japan)	-Manufacturing equipment for automotive seals	169	Apr. 2010	Mar. 2011
Nishikawa Big Well Co., Ltd. (Hiroshima, Japan)	-Manufacturing equipment for automotive seals	84	Apr. 2010	Mar. 2011
Overseas subsidiaries
Nishikawa Tachaplalert Rubber Co., Ltd. (Thailand)	-Manufacturing equipment for automotive seals	471	Dec. 2009	Dec. 2010
Shanghai Nishikawa Sealing System Co., Ltd. (Shanghai, China)	-Manufacturing equipment for automotive seals	451	Dec. 2009	Dec. 2010

*Most of the domestic investments were for renewing or rationalizing facilities for new product launches, and generated no significant improvement in the Company's production capacity.
*Investments in overseas subsidiaries were made to respond to more orders.