Murakami Corporation 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 | |
Overall | ||||
Sales | 59,961 | 54,917 | 9.2 | 1) |
Operating income | 4,685 | 4,355 | 7.6 | - |
Ordinary income | 5,196 | 5,221 | (0.5) | - |
Current net income | 3,984 | 2,440 | 63.3 | - |
Factors
1) Sales
Japan
-Sales in Japan at the Rearview Mirror business grew 1.4% year-on-year to 39,317 million yen because sales of factory-installed rearview mirrors for major vehicle models were higher year-on-year. This was the result of greater demand triggered by the recovery after the Great East Japan Earthquake, and higher sales driven by eco-car sales incentives.
Asia
-Although sales levels were lower at its production plants in China, sales in Thailand, which had recovered from the impact caused by the flooding, were strong. As a result, sales increased 24.2% year-on-year to 14,799 million yen.
North America
-Automotive demand was strong, which resulted in higher sales for the year. Sales were 5,844 million yen, a 38.6% year-on-year increase.
Recent Developments Outside Japan
<China>-The Company announced that effective July 19, 2012, it has completed the merger of its wholly-owned subsidiaries, Jiaxing Murakami Ishizaki Corporation and Jiaxing Murakami Kaimeido Corporation, in Zhejiang Province, China. The surviving company Jiaxing Murakami Ishizaki, which absorbed Jiaxing Murakami Kaimeido, will change its corporate name by the end of September 2012. These two subsidiaries are engaged in the manufacturing and selling of rear-view mirrors. (From a press release on August 10, 2012)
<Indonesia>
-The Company announced on June 29 that it will acquire a 51 percent share in PT. Delloyd, a manufacturer of automotive outer mirrors in Indonesia. PT. Delloyd was established in April 2003 as a wholly owned subsidiary of Delloyd Industries (Malaysia) Sdn. Bhd. The Company is going to pay 1.89 million dollars (approximately 150 million yen) for acquiring the 51 percent ownership from Delloyd Industries. The Company has already been providing technical support to PT. Delloyd based on a partnership agreement. As Japanese automakers are stepping up production in Indonesia, the company aims to secure a firm production foothold in the country through the acquisition. (From an article in the Nikkan Jidosha Shimbun on July 2, 2012)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 315 | 382 | 342 |
R&D Structure
-The R&D group and the technical group are the main functions conducting R&D activities, which are focused on researching automotive information-conveyance systems and highly functional fine glass.-The Company has 25 members total working in the R&D group and technical group. (As of Mar. 31, 2013)
R&D Activities
The focus of R&D activities are as follows:1.Vehicle information conveyance system
-Development of all-weather safety enhancing mirror system
-Development of blind spot eliminating system
-Development of environmentally-conscious mirror system (light weight and energy saving)
2.Automobile parts
-Development of value-added door mirrors
-Development of mirror products of enhanced convenience
-Development of safety enhancing mirror products
-Development of environmentally conscious mirror products
3. High function fine glass
-Development of various types of optical filters and mirrors
-Development of light-adjusting filters (mirrors)
Licensing of Technology to Other Companies |
(As of Mar. 31, 2013) |
Partner | Contract | Contract Period |
Ken Sean Factory Co., Ltd. (Taiwan) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Ford Lio Ho Motor) including Japanese automakers | Feb. 1, 2013 - Jan. 31, 2014* |
Ampas Industries Co., Ltd. (Thailand) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Dec. 29, 2012 - Dec. 28, 2013* |
Delloyd Industries (M) Sdn. Bhd. (Malaysia) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Dec. 5, 2012 - Dec. 4, 2013* |
Fu-Hwa Glass Co., Ltd. (Taiwan) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Kuozui Motors) including Japanese automakers | Apr. 1, 2012 - Mar. 31 2013* |
Tata Ficosa Automotive Systems, Ltd. (India) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | From Sep. 1, 2004 to the completion of delivery of the products subject to the contract |
Ficosa Do Brasil , Ltda. (Brazil) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | From Sep. 1, 2004 to the completion of delivery of the products subject to the contract |
Ficosa International S.A. (Spain) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jun. 30, 2012 - Jun. 29, 2013* |
Murakami Ampas (Thailand) Co., Ltd. (Thailand) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jul. 1, 2012 - Jun. 30, 2013* |
Murakami Manufacturing U.S.A. Inc. (USA) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jan. 1, 2013 - Dec. 31, 2013* |
Murakami Manufacturing (Thailand) Co., Ltd. (Thailand) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jun. 30, 2012 - Jun. 29, 2013* |
Jiaxing Murakami Corporation (China) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Aug. 1, 2012 - Jul. 31, 2013* |
Metagal Argentina S.A. (Argentina) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jan. 27, 2011 - Jan. 26, 2014* |
Investment Activities
Investment Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Japan and Company-wide (common throughout) | 1,300 | 4,846 | 1,951 |
Asia | 2,034 | 649 | 1,985 |
North America | 109 | 24 | 28 |
Total | 3,444 | 5,520 | 3,965 |
Capital Investments in FY ended Mar. 31, 2013
Mirror system business
-At its rearview mirror production plants in Japan, the Company invested to improve and streamline operations, perform quality control activities, and get production operations ready to manufacture new products, in order to increase productivity.
-At its plants in Asia and North America, the Company invested in facilities and equipment to increase production capacity and enhance productivity.
Planned Capital Investments
|
(As of Mar. 31, 2013) |
Name (Location) |
Type of facility | Planned total investment (in million JPY) |
Start | Planned completion |
Fujieda Plant (Shizuoka Pref., Japan) |
Production facilities for Automotive Rear-view Mirrors | 215 | Oct. 2012 | Mar. 2014 |
Production facilities for fine glass | 164 | Nov. 2012 | Mar. 2014 | |
Other | 13 | Dec. 2012 | Feb. 2014 | |
Ohigawa Plant (Shizuoka Pref., Japan) |
Production facilities for Automotive Rear-view Mirrors | 258 | Oct. 2012 | Mar. 2014 |
Other | 111 | Nov. 2012 | Mar. 2014 | |
Tsuiji Plant (Shizuoka Pref., Japan) |
Production facilities for Automotive Rear-view Mirrors | 158 | Nov. 2012 | Jan. 2014 |
Other | 12 | Apr. 2013 | Oct. 2013 | |
Murakami Ampas (Thailand) Co., Ltd. (Samutprakarn, Thailand) |
Production facilities | 806 | Jun. 2012 | Jun. 2014 |
Murakami Manufacturing U.S.A. Inc. (Kentucky, USA) |
Production facilities |
415 | Jul. 2012 | Mar. 2014 |
(Note) Hardly any direct investments were made to actually increase capacity in terms of rebuilding its production and logistics frameworks.