Chuo Malleable Iron - Business Report FY2006

Business Highlights

Financial Overview
(in million JPY) FY2006 FY2005 Rate of
Sales 21,094 19,874 6.1 -
Operating income 697 883 (21.0) Operating income was down, affected by  price hikes in materials such as iron scrap. 
Ordinary income 1,122 1,057 6.1 Ordinary income increased due to a rise in investment returns and gains due to favorable currency translation.  
Current net income 609 214 183.7 Current net income increased without any impairment loss of fixed assets during FY2006.
Automobile & other vehicle components
Sales 17,691 15,333 5.9 Sales increased as a result of a greater volume of autos being exported. 
Operating income 1,352 1,522 (11.1) -


R&D Expenditure
(in million JPY) FY2006 FY2005 FY2004
Automobile & other vehicle components 35,397 42,506 56,801

Automobile & other vehicle components

- The technical section within the technical department took charge of all activities, from development through to design, casting, and appraisal for the Company's business relating to automotive and body components businesses.

- In order to respond to customers' needs calling for reductions in vehicle weight, costs and lead-time, the Company enhanced its customer-support in the areas of design and appraisal, from proposals on optimum component shapes to appraisal of prototypes, by providing both casting technology and CAE analysis. CAE designs and at the same time can analyze degree of strength, mold fill, and solidification at the 3D model stage.

-As for developments in the area of casting, the Company renewed a low-speed filling die-cast process in order to replace conventional materials with aluminum and to further improve near-perfect precision.

Investment Activities

Capital Expenditure
(in millions of JPY) FY2006 FY2005 FY2004
Overall 1,805 3,140 1,683
Automobile &
other vehicle components
Casting 689 2,136 925
Processing 1,100 1,002 721

Automobile & other vehicle components

- In the casting division, 689 million yen was invested mainly in the maintenance, renewal and rationalization of existing facilities.
- In the processing division, 1,100 million yen was invested mainly in rationalizing operations and installing labor-saving equipment.

Domestic Investments
The Company plans to build a new main plant in Toki City, Gifu Pref., which will be operational in October 2008. 

New Facilities (in million JPY)
Facility Name Facilities Expected Investment Started in: Expected to Complete in: Production Capacity after Completion
Nissin Plant
(Aichi, Japan)
Dies and casting facilities 491 Mar. 2007 Mar. 2008 *1
Nissin Plant
(Aichi, Japan)
Processing facilities 688 Jan. 2007 Mar. 2008 *1
Kumamoto Plant
(Kumamoto, Japan)
Casting and processing facilities 220 Dec. 2006 Mar. 2008 *1
Toki Plant
(Gifu, Japan)
Casting facilities 3,000 Jun. 2007 Oct. 2008 1,800 tons/month
Toki Malleable Iron Co., Ltd.
(Gifu, japan)
Casting facilities 67 Apr. 2007 Mar. 2008 *1
*1: The project is to renew facilities, so the production capacity will remain unchanged.