Pacific Industrial Co., Ltd. Business Report FY2010
Business Highlights
Financial Overview |
(in millions of JPY) |
| FY2010 | FY2009 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 84,631 | 78,202 | 8.2 |
- |
| Operating income |
5,151 | 3,073 | 67.6 | - |
| Ordinary income |
5,281 | 3,595 | 46.9 | - |
| Current net income | 2,969 | 2,498 | 18.9 | - |
| Stamping/resin product business | ||||
| Sales | 60,209 | 58,610 | 2.7 | - Sales decreased from the last year’s result in Japan. However, sales increased at subsidiaries overseas thanks to growth in local markets, especially in China. |
| Operating income | 2,950 | 1,609 | 83.3 | - Operating income increased largely year-on-year as a result of the Company’s cost cutting efforts and a decline in depreciation cost. |
| Valve product business | ||||
| Sales | 24,091 | 19,120 | 26.0 | - Sales of tire valves and other valve products were strong buoyed by growing sales of the Tire Pressure Monitoring Systems (TPMSs). The company’s TPMSs are sold mainly in the U.S. |
| Operating income | 2,219 | 1,494 | 48.5 | - Despite the negative impact of soaring materials prices and the rising value of the yen, profit increased year-on-year supported by greater sales volumes and effects of cost cutting measures. |
Medium-term management plan OCEAN-12
-Period: Fiscal year 2010 through FY2012-Purpose: Achieving results with limited resources, solidifying CSR activities, and establishing and developing technologies
| OCEAN-12 numerical targets | FY2012 (Planned) |
|
| Sales | 80 billion yens | |
| Ordinary income ratio |
5.0% | |
| Sales in and outside Japan (as percentages of total sales) | In Japan | 74% |
| Outside Japan | 26% | |
| Breakdown of sales of functional and non-functional products (as percentages of total sales) | Functional | 43% |
| Non-functional | 57% | |
| Sales by product (as a percentage of total sales) | Stamping/resin | 74% |
| Valve | 14% | |
| TPMS | 11% | |
| Others | 1% | |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenses |
(in millions of JPY) |
| FY2010 | FY2009 | FY2008 | |
| Overall | 735 | 684 | 757 |
| Stamping/resin products business | 114 | 73 | 141 |
| Valve products business | 84 | 84 | 404 |
| Common | 525 | 518 | 206 |
R&D Activities
| Business segment |
Major activities |
| Stamping/resin products business |
- The Company researched and developed new stamping methods, including cold stamping technology using ultra high-strength steel. |
| Valve products business |
- Tire valves: in response to the European initiative to reduce materials that impact the environment, the Company researched and developed lead-free alternative metals for tire valves. It also conducted a research and development to blend rubber that doesn't contain environmentally harmful materials. |
| Common | The Company also conducted the following R&D activities: - developing and launching non-plated products to which bright film has been applied - developing multi functional, plastic components - developing elemental technology to achieve noise and vibration absorption structure |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
| FY2010 | FY2009 | FY2008 | |
| Overall | 5,065 | 4,359 | 14,194 |
| Stamping/resin products | 3,074 | 3,888 | 13,026 |
| -In Japan | 2,687 | 2,636 | 9,717 |
| -Outside Japan | 387 | 1,252 | 3,308 |
| Valve products | 1,936 | 424 | 1,140 |
|
Business segment |
Objective |
| Stamping/resin products | In Japan: -To respond to new products such as molds for new vehicle models, etc. Outside Japan: -To respond to new products in its stamping business in China and North America. |
| Valve products | Production increase and preparation for production of new products |
New Facilities
| Facility (Location) |
Business segment | Purpose | Planned total investment ( in million JPY) |
Start | Planned completion | Production capacity growth after completion |
| The Company Nishi Ogaki Plant (Gifu, Japan) |
Stamped and resin | New products, etc. | 3,946 |
Jun. 2010 | Mar. 2014 | None |
| Automation and rationalization | 526 |
Apr. 2010 | Sep. 2012 | None | ||
| The Company Higashi Ogaki Plant (Gifu, Japan) |
Stamped and resin | New products, etc. | 1,524 |
Sep. 2010 | Sep. 2013 | None |
| Automation and rationalization | 576 |
Sep. 2010 | Apr. 2012 | None | ||
| The Company Yoro Plant (Gifu, Japan) |
Stamped and resin |
New products, etc. | 104 |
Aug. 2010 |
Aug. 2013 | None |
| The Company Kyushu Plant (Fukuoka, Japan) |
Stamped and resin | Automation | 25 |
Apr. 2011 |
Sep. 2011 |
None |
| The Company Tohoku Plant (Miyagi, Japan) |
Stamped and resin | Automation | 53 |
Dec. 2010 |
Aug. 2011 | None |
| The Company Kita Ogaki Plant (Gifu, Japan) |
Valve | New products, etc. | 536 |
Mar. 2010 | Feb. 2014 | None |
| Automation and rationalization | 552 |
Nov. 2010 |
Oct. 2013 |
None | ||
| The Company Mino Plant (Gifu, Japan) |
Valve | Automation and rationalization | 208 |
Dec. 2010 | Sep. 2013 | None |
| Pacific Industries USA Inc. (Ohio, USA) |
Stamped and resin, Valve |
New products, etc. | 408 |
Apr. 2011 | Mar. 2012 | None |
| Pacific Valve (Taiwan) Co., Ltd. (Taichung, Taiwan) |
Stamped and resin, Valve |
New products, etc. | 92 |
Jan. 2011 | Dec. 2011 | None |
| Pacific Valve Industrial Co., Ltd. (Yangsan, Korea) |
Valve | Maintenance and retooling | 62 |
Jan. 2011 | Dec. 2011 | None |
| Pacific Air Controles Co., Ltd. ( Asan, Korea) |
Valve | Production expansion | 3,934 |
Jan. 2011 | Jul. 2012 | 100% |
| Pacific Industries (Thailand) Co., Ltd. (Chachoengsao, Thailand) |
Valve | Maintenance and retooling | 79 |
Jan. 2011 | Dec. 2011 | None |
| Tianjin Pacific Auto Parts Co., Ltd. (Tianjin, China) |
Stamped and resin, | New products, etc. | 586 |
Jan. 2011 | Dec. 2011 | None |