Daido Metal Co., Ltd. Business Report FY2007

Business Highlights

Financial Overview
(in million JPY) FY2007 FY2006 Rate of change (%) Factors
Sales 68,062 63,841 6.6 Sales grew because the Company strengthened its sales network overseas and increased the volume of products it sold.
Operating income 868 2,076 (58.2) Operating income was down because of soaring costs for non-ferrous and bi-materials ; and increased depreciation expenses. In addition, the performance at Daido Metal Bellefontaine LLC in the USA, now undergoing reorganization, had a negative impact on the Company's operating income.
Ordinary income 340 2,170 (84.3) -
Current net income (2,063) (426) - -
Bearing metal for automobiles
Sales 53,968 51,514 4.8 Even though the volume of domestic automotive sales declined, the volume of exports,  mainly to Asia and Europe, remained strong. The Company, in Europe particularly, was successful in winning new business for its lead-free bearings used in automotive engines and components.


The Company will start manufacturing bearings for automotive engines in Russia. It says it will acquire Russia's top manufacturer of engine bearings, ZMZ-Bearings. This will be the 11th overseas manufacturing facility of the Company, and the first Russian plant to be established by Japanese metal products suppliers. It plans to invest 20 million dollars in this project (approximately 2.4 billion yen), targeting sales of 10 billion yen in Europe. The Company intends to achieve this by bringing up the quality level of ZMZ to meet high requirements by Japanese and the Big 3 automakers. ZMZ is a subsidiary of a Russian car manufacturer, Severstal-Auto. The subsidiary supplies engine bearings and bimetal, materials of engine bearings, mainly for the Russian car industry. The acquisition will allow Daido to supply bimetal from two plants overseas: ZMZ and the Company's existing facility in the U.S.A. (From an article in the Nikkan Jidosha Shimbun on Aug. 4, 2007)


-In the fiscal year that ended in March 2008, Daido Metal Europe GmbH began delivering  lead-free bearings to the PSA Group, BMW and Fiat. As a result, the Company, which has already been delivering its automotive engine bearings to Daimler, Volvo Cars, Renault and Ford (UK), now offers its products to seven European automakers. 

Restructuring and Expansion of Production Structure

The Company decided to close its plants in Tokyo and Saitama prefectures that manufacture automotive half-bearings, consolidating their operations into the Seki, Gifu Prefecture plant of its subsidiary, Daido Plain Bearing (DPB). The Company will complete relocating the production lines in July 2008. DPB will launch commercial operations in October 2008. (From a press release dated November 14, 2007)

The Company's subsidiary, Daido Plain Bearing (DPB), will build a second production facility at its Seki Plant. This will allow the Company to expand its production volume of automotive engine bearings (half metal) and catch up with its business-expansion projects taking place in Europe. (From a press release dated March 7, 2008)

>>> See Investments for further details


R&D Structure

-R&D activities are carried out by the following four divisions: Central Laboratory, Production Promotion Office, Company No.1 Development Office, Company No.3 Development Office.

-As of March 31, 2008, the Company has 66 researchers.

R&D Expense
(in million JPY) FY2007
FY2006 FY2005
Amount 1,306 1,314 1,232

R&D Results (for FY2007, which ended March 31, 2008)

The Company developed lead-free overlay aluminum bearings by adding a new material, a bismuth overlay, to its aluminum bearings equipped on high-performance engines. This new material has superior properties in terms of anti-seizing, conformity, and repelling foreign substances. The Company already started mass-production of the new material.

Technology Assistance Contract (As of Mar. 2008)
Technology Contract Contract
Bimetal Bearings Limited
Manufacturing technology for bearing metal 1.Provision of technological information and know-how
2.Licensing of industrial property rights 
Feb. 7, 2008
Feb. 6, 2011

Investment Activities