Financial Overview

(in millions of JPY)

	FY2008	FY2007	Rate of change	Factors
Overall
Sales	18,919	22,464	(15.7%)	Sales at all divisions declined.
Operating income	(997)	495	-	The drop in operating income was due to the sudden increases in prices of raw materials such as iron scrap, and sales cost.
Ordinary income	(1,100)	921	-	-
Current net income	(1,552)	614	-	-
Automobile & other vehicle components
Sales	15,484	18,508	(16.3%)	Sales remained strong in the first half of the year, thanks to strong exports of automobiles to Asia. Due to the global financial crisis in the latter half of the year, however, car production and exports went down and sales declined.
Operating income	(150)	972	-	-

Production Structure

-The Company is reviewing its project to build a new plant in Toki City, Gifu Prefecture. The planned new facility was scheduled to start operations in October 2008. 

R&D Expenditure

(in millions of JPY)

	FY2008	FY2007	FY2006
Automobile & other vehicle components	2	22	35

R&D Structure

Automobile & other vehicle components

-The SE section is in charge of all activities, from development through to design, casting and appraisal.

-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.

Capital Expenditure

(in millions of JPY)

		FY2008	FY2007	FY2006
Overall		1,576	1,641	1,805
Automobile & other vehicle components	Casting	528	792	689
	Processing	1,035	844	1,100

Capital investments
(Automobile & other vehicle components - FY2008)

- The cast parts segment focuses its investment activities on maintaining, revamping, and streamlining its existing production lines including those at Suzhou Chuo Malleable Iron Ltd. in China. 
- The processing segment worked on streamlining production and reducing the number of its workforce.  

New equipment installations

Company/ Facility (Location)	Equipment	Planned amount of investment (million yen)	Project period		Capacity increase
			From	To
The Company Nissin Plant (Aichi, Japan)	Casting facilities (High-frequency induction furnaces)	545	Apr. 2009	Aug. 2009	*1
The Company Nissin Plant (Aichi, Japan)	Processing facilities	168	Mar. 2009	Mar. 2010	*1
The Company Kumamoto Plant (Kumamoto, Japan)	Processing facilities	56	May 2009	Mar. 2010	*1
Toki Malleable Iron Co., Ltd. (Gifu, japan)	Casting facilities	31	Apr. 2009	Mar. 2010	*1
Suzhou chuo Malleable Iron Ltd. (Suzhou, China)	Casting facilities	19	Jan. 2009	Dec. 2009	*1

*1: The project is to renew facilities, so the production capacity will remain unchanged.