Murakami Corporation Business Report FY ended Mar. 2015
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 64,655 | 62,108 | 4.1 | 1) |
| Operating income | 5,847 | 5,031 | 16.2 | |
| Ordinary income | 6,748 | 5,509 | 22.5 | |
| Current net income | 4,847 | 3,462 | 40.0 | |
Factors
1)
-Sales were 3.6% lower year-on-year, to JPY 35,309 million, due to lower sales of automotive rearview mirrors.
-Operating profit was 9.0% lower year-on-year to JPY 2,961 million, due to lower sales volumes, in spite of the Company's initiatives to improve productivity and reduce costs.
-Even though new-vehicle sales were sluggish in Thailand, the region was profitable due to favorable currency translation. Sales were JPY 17,999 million, an 8.4% year-on-year increase.
-Operating profit increased 40.7% year-on-year, to JPY 1,691 million, due to effective rationalization initiatives and favorable currency translation.
-Sales increased 27.9% year-on-year, to JPY 11,346 million, because automobile production increased as a result of higher demand by consumers to buy new vehicles in line with a strong recovery in the consumer market. In addition, favorable currency translation also helped increase the sales results.
-Operating profit increased 379.2% year-on-year to JPY 1,035 million as a result of increased sales and effective rationalization activities.
Restructuring
Dissolved Murakami Seiki Corporation (a subsidiary in Japan)
-The Company announced that it will dissolve Murakami Seiki Corporation (headquarters: Fujieda, Shizuoka Prefecture), its wholly owned subsidiary that produces and sells zinc and aluminum die-casting products for automotive rear view mirrors. The dissolution is scheduled to take place on December 31, 2014, and Murakami Seiki will continue to operate its production lines in Joso, Ibaraki Prefecture through December. After the closure, the Company will outsource die-casting operations to outside suppliers in Shizuoka. Recently, demand for die-casting components has been falling due to growing use of plastic rear view mirrors in the market. The Group has decided to discontinue the die-casting business and thereby improve its operational efficiency. (From an article in the Nikkan Jidosha Shimbun on September 18, 2014)
Outlook for FY ending Mar 31, 2016 |
(in million JPY) |
| FY ending Mar. 31, 2016 (Estimate) |
FY ended Mar. 31, 2015 (Result) |
Rate of Change (%) |
|
| Sales | 66,000 | 64,655 | 2.1 |
| Operating income | 5,200 | 5,847 | (11.1) |
| Ordinary income | 5,800 | 6,748 | (14.1) |
| Net income | 4,000 | 4,847 | (17.5) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 508 | 367 | 315 |
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 42 members total working in the R&D group and technical group. (As of Mar. 31, 2015)
R&D Activities
The focus of R&D activities are as follows:
1.Vehicle information conveyance system
-Development of environmentally-conscious mirror system
-Development of blind spot eliminating system
-Development of energy saving mirror system (light weight and energy saving)
-Development of products used in rearview mirrors.
2. 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, 2015) |
| 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, 2015 - Jan. 31, 2016* |
| Ampas Industries Co., Ltd. (Thailand) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Dec. 29, 2014 - Dec. 28, 2015* |
| Delloyd Industries (M) Sdn. Bhd. (Malaysia) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Dec. 5, 2014 - Dec. 4, 2015* |
| 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, 2014 - Mar. 31 2015* |
| 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, 2014 - Jun. 29, 2015* |
| Metagal Argentina S.A. (Argentina) |
To supply design and manufacturing technology on Automotive Rear-view Mirrors | Jan. 27, 2015 - Jan. 26, 2016* |
* Contracts are renewed every year if both parties agree.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Japan and Company-wide (common throughout) |
2,553 | 1,189 | 1,300 |
| Asia | 1,017 | 1,691 | 2,034 |
| North America | 611 | 191 | 109 |
| Total | 4,181 | 3,072 | 3,444 |
Capital Investments in FY ended Mar. 31, 2015
Mirror system business
-At its rear-view 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.
-Outside Japan, the Company invested in facilities and equipment to increase unit production and improve productivity.
-In North America, the Company invested to build a production plant at Murakami Manufacturing Mexico, S.A. de C.V., which is scheduled to go online in 2016.
Planned Capital Investments |
(As of Mar. 31, 2015) |
| Name (Location) |
Type of facility | Planned total investment (in million JPY) |
Start | Planned completion | Increase in capacity |
| Fujieda Plant (Shizuoka Pref., Japan) |
Production facilities for Automotive Rear-view Mirrors | 200 | Nov. 2014 | Mar. 2016 | * |
| Production facilities for fine glass | 671 | Nov. 2014 | Mar. 2016 | * | |
| Other | 14 | Oct. 2014 | Mar. 2016 | * | |
| Ohigawa Plant (Shizuoka Pref., Japan) |
Production facilities for Automotive Rear-view Mirrors | 181 | Oct. 2014 | Mar. 2016 | * |
| Other | 136 | Nov. 2014 | Jan. 2016 | * | |
| Tsuiji Plant (Shizuoka Pref., Japan) |
Dies for producing rearview mirrors | 1,090 | Oct. 2014 | Mar. 2016 | * |
| Production facilities for Automotive Rear-view Mirrors | 215 | Nov. 2014 | Feb. 2016 | * | |
| Other | 16 | Oct. 2014 | Jan. 2016 | * | |
| PT. Murakami Delloyd Indonesia (West Java, Indonesia) |
Land | 600 | Jun. 2014 | Jun. 2015 | New plant site |
| Murakami Manufacturing Mexico, S.A. de C.V. (Zacatecas, Mexico) |
New plant | 1,335 | Aug. 2014 | Dec. 2015 | North American plant |
* Hardly any direct investments were made to actually increase capacity in terms of rebuilding its production and logistics frameworks.
Data
| Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
| Japan | 993 | 1,021 | 1,042 |
| Asia | 1,376 | 1,390 | 1,316 |
| North America | 257 | 256 | 227 |
| In common | 38 | 43 | 37 |
| Total | 2,664 | 2,710 | 2,622 |
Sales by Segment |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating Profit | Sales | Operating Profit | Sales | Operating Profit | |
| Japan | 35,309 | 2,961 | 36,627 | 3,253 | 39,317 | 3,585 |
| Asia | 17,999 | 1,691 | 16,609 | 1,202 | 14,799 | 951 |
| North America | 11,346 | 1,035 | 8,871 | 216 | 5,844 | 89 |
| Consolidated elimination | - | 159 | - | 359 | - | 59 |
| Total | 64,655 | 5,847 | 62,108 | 5,031 | 59,961 | 4,685 |
Asia : Thailand, China, Indonesia
North America : USA, Mexico
Consolidated |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.) |
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 56,343 | 54,917 | 59,961 | 62,108 | 64,655 |
| Income from ordinary business activities (million yen) | 5,648 | 5,221 | 5,196 | 5,509 | 6,748 |
| Net income (million yen) | 3,386 | 2,440 | 3,984 | 3,462 | 4,847 |
| Comprehensive income (million yen) | 3,247 | 2,238 | 5,465 | 5,885 | 7,670 |
| Net assets (million yen) | 27,186 | 29,147 | 34,288 | 40,324 | 47,272 |
| Total assets (million yen) | 44,902 | 46,755 | 50,461 | 58,250 | 65,664 |
| Book value per share (yen) | 2,029.32 | 2,175.37 | 2,548.88 | 2,957.32 | 3,471.44 |
| EPS (yen) | 261.54 | 188.60 | 307.91 | 267.67 | 374.90 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 58.5 | 60.2 | 65.3 | 65.7 | 68.3 |
| ROE (%) | 13.6 | 8.7 | 13.0 | 9.7 | 11.7 |
| PER | 4.4 | 6.6 | 4.4 | 5.3 | 5.4 |
| Cash flow from operating activity (million yen) | 6,102 | 3,529 | 8,629 | 5,671 | 6,098 |
| Cash flow from investment activity (million yen) | (4,870) | (5,661) | (4,467) | (1,765) | (3,606) |
| Cash flow from financial activity (million yen) | (527) | (373) | (307) | (262) | (896) |
| Balance cash and cash equivalents (million yen) | 10,348 | 7,711 | 11,849 | 16,585 | 18,784 |
| Number of employees | 2,625 | 2,670 | 2,622 | 2,710 | 2,664 |
Non Consolidated
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 41,904 | 39,811 | 40,421 | 38,028 | 37,742 |
| Income from ordinary business activities (million yen) | 5,094 | 4,106 | 3,947 | 4,069 | 4,112 |
| Net income (million yen) | 2,938 | 2,351 | 2,066 | 2,531 | 2,552 |
| Paid-in Capital (million yen) | 3,165 | 3,165 | 3,165 | 3,165 | 3,165 |
| Number of shares outstanding (thousand) | 13,100 | 13,100 | 13,100 | 13,100 | 13,100 |
| Net assets (million yen) | 23,739 | 25,798 | 27,905 | 30,415 | 33,223 |
| Total assets (million yen) | 36,670 | 40,143 | 40,754 | 42,826 | 46,322 |
| Book value per share (yen) | 1,834.17 | 1,993.64 | 2,156.94 | 2,351.76 | 2,569.69 |
| Dividend per share (yen) | 16.00 | 16.00 | 18.00 | 18.00 | 22.00 |
| EPS (yen) | 226.95 | 181.72 | 159.68 | 195.67 | 197.39 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 64.7 | 64.3 | 68.5 | 71.0 | 71.7 |
| ROE (%) | 13.1 | 9.1 | 7.7 | 8.7 | 8.0 |
| PER | 5.0 | 6.8 | 8.5 | 7.3 | 10.3 |
| Payout ratio (%) | 7.1 | 8.8 | 11.3 | 9.2 | 11.1 |
| Number of employees | 903 | 923 | 924 | 922 | 908 |