Chuo Spring Co., Ltd. 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 | 85,533 | 84,905 | 0.7 | 1) |
| Operating income | 1,224 | 1,787 | (31.5) | - |
| Ordinary income | 2,392 | 2,491 | (4.0) | - |
| Current net income | 1,619 | 810 | 99.9 | - |
1) Sales
Factors by Region
-Sales decreased 3.2% year-on-year due to lower new-vehicle sales in Japan because of the consumption tax increase and other factors.
-Sales increased 12.5% year-on-year due to higher sales of new vehicles in North America.
-Sales in increased 33.7% year-on-year because of turning Tianjin Zhongxing Automotive Components Co., Ltd. into a consolidated subsidiary and achieving higher sales of new vehicles in China.
-Sales increased 0.6% year-on-year, which is the result of improved performance at the subsidiary in Indonesia and favorable currency translation being offset by lower sales of new vehicles in Thailand because of the political unrest in the country.
Restructuring
Liquidation of subsidiary in U.S.
-The Company announced that it has completed the dissolution of its U.S.-based consolidated subsidiary, Central Spring, Inc. The subsidiary had been engaged in manufacturing and selling automotive parts. (From a press release on December 24, 2014)
Former Tianjin Chuhatsu Fawer Spring Co. becomes consolidated subsidiary
-In July 2014, Fawer Automotive Parts Limited Company transferred 15.55% of the shares it owned in Tianjin Chuhatsu Fawer Spring Co., Ltd., a the joint-venture between Fawer Automotive Parts and the Company, and as a result, Tianjin Chuhatsu Fawer Spring Co. became a consolidated subsidiary of the Company, being renamed Tianjin Zhongxing Automotive Components Co., Ltd. The Company's stakeholding increased from 46.00% to 61.55%. The Company is planning to strategically expand its operation in China with this transaction.
Awards
-The Company has received the Supplier Award in the category of Quality from Honda Motor Co., Ltd. (From a press release on March 6, 2015)
Outlook for FY ending Mar. 31, 2016 |
(in million JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
| Sales | 85,800 | 85,533 | 0.3 |
| Operating income | 1,300 | 1,224 | 6.2 |
| Ordinary income | 1,400 | 2,392 | (41.5) |
| Net income | 800 | 1,619 | (50.6) |
>>>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 | 300 | 312 | 293 |
R&D Facilities
-Technical Center (Aichi Pref., Japan)
R&D Activities
Suspension Spring Business
- The Company is developing technology to further improve the efficiency and performance of its compact, single-product production line on which suspension coil springs, stabilizers, and leaf springs are manufactured.
- In reducing environmental impact, the Company has achieved zero emissions in terms of its painting processes and some of its heat-treatment processes. Its compact production lines are planned to be installed in production plants in and outside Japan.
- The Company is developing and producing suspension coils that control lateral forces, which contribute to improving vehicle maneuverability, by developing a new, hot-forming method that opens up wider possibilities for specs and materials. This is in addition to the conventional cold-forming method.
- The Company is developing high-strength materials and reinforced treatment methods in meeting the needs of OEMs for products that are smaller, lighter, and less costly. In addition, the Company is working under the idea of "the right materials in the right place" by actively seeking the lowest costs materials and making use of them wherever they may be, either in or outside Japan.
Precision Spring Business
- By making use of low-cost materials and materials procured outside Japan, the Company is enhancing its proprietary designs so as to be able to reflect the results of its expertise and data in its products, in order to create designs that meet the requirements for quality and performance.
- In seeking technological innovations and technology that improves fuel efficiency, the Company is working on various developments such as springs, finding new uses for them such in automotive safety technology.
- In the fiscal year that ended in March 2015, the Company launched business in a sector new to its operations. It developed new assembly products that support OEMs' safe-driving assist systems. These are being equipped on new-model vehicles.
- The Company is developing new products that can be used use in safe-driving assist systems, aiming to launch production of them in the fiscal year that will end in March 2016. It is also actively working to increase sales in the precision-spring sector.
Cable Business
- The Company has developed and started in-house wire drawing, heat treatment, and materials machining, making use of low-priced materials procured outside Japan.
- The Company is working to further increase sales outside Japan by making use of its automated, efficient production lines for cable assembly processes, making use of good quality but low priced materials procured outside Japan.
Technology licensing-out Agreement |
(As of Mar. 31, 2015) |
| Suppliers | Country | Contents of contract | Date of Contract | Contract period |
| Supreme Spring (A Division of Metindustrial (Proprietary) Ltd.) | South Africa | Chassis springs for automobiles and railroad cars. | Mar. 31, 1984 | Five years (with provision for automatic extension) |
| Metal Textiles Corporation | USA | Knitted wire meshes | Jun. 1, 1994 | Five years (with provision for automatic extension) |
| Dura Automotives Systems, Inc. | USA | Control cables | Jun. 2, 1995 | Ten years (with provision for automatic extension) |
| Rozmas Celik Sanayi Ve Ticaret A.S. | Turkey | Automotive chassis springs | Feb. 20, 2010 | Until the project is terminated |
-The Company announced that it will sign a technical cooperation agreement with Bangkok Spring Industrial Co., Ltd. (BSK), a subsidiary of Somboon Advance Technology Public Co., Ltd. of Thailand. Under the agreement, Chuo Spring will provide BSK with its technologies to develop and manufacture suspension parts for automobiles and transportation equipment, including coil springs, stabilizer bars, and leaf springs. (From a press release on April 27, 2015)
Investment Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 3,162 | 3,457 | 6,661 |
- Japan: Investment of JPY 1,584 million to streamline and add capacity to precision-spring production lines.
- North America: Investment of JPY 252 million to respond to production of new products, rationalize existing production lines, and improve quality.
- China: Investment of JPY 174 million to respond to production of new products, rationalize existing production lines, and improve quality.
- Asia: Investment of JPY 1,150 million to set up new production plant, respond to production of new products, increase production capacity, rationalize existing production lines, and improve quality.
Planned Capital Investments |
(As of Mar. 31 2015) |
| Planned amount of investment (in million JPY) | Investment plans | |
| Japan | 2,300 | Production equipment to manufacture suspension springs, precision springs, and control cables, dies and jigs. |
| North America | 100 | Production equipment to manufacture control cables, precision springs. |
| China | 600 | Production equipment to manufacture suspension springs, precision springs and control cables. |
| Asia | 600 | Production equipment to manufacture suspension springs, precision springs and control cables. |
| Total | 3,600 | - |
Data
| Division | Mar. 2015 | Mar. 2014 | Mar. 2013 |
| Japan | 2,108 | 2,153 | 2,255 |
| North America | 292 | 293 | 280 |
| China | 923 | 917 | 761 |
| Asia | 1,026 | 1,045 | 1,050 |
| Total | 4,349 | 4,408 | 4,346 |
Sales by Business Segment |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Suspension Springs | 27,877 | 26,896 | 26,868 |
| Precision Springs | 19,920 | 19,433 | 18,576 |
| Cables | 22,820 | 23,025 | 21,114 |
| Others | 14,915 | 15,550 | 15,491 |
| Total | 85,533 | 84,905 | 82,050 |
Sales by Geographic Area |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating income | Sales | Operating income | Sales | Operating income | |
| Japan | 60,032 | 1,911 | 62,034 | 3,069 | 62,712 | 2,926 |
| North America | 10,846 | 452 | 9,638 | 244 | 8,058 | (290) |
| China | 5,408 | 103 | 4,046 | 14 | 2,622 | (92) |
| Asia | 9,245 | 296 | 9,186 | 182 | 8,656 | 464 |
| Consolidated elimination | - | (1,539) | - | (1,723) | - | (1,803) |
| Total | 85,533 | 1,224 | 84,905 | 1,787 | 82,050 | 1,204 |
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 (Thousand yen) | 76,416,024 | 76,693,465 | 82,050,561 | 84,905,401 | 85,533,732 |
| Income from ordinary business activities (Thousand yen) | 2,044,611 | 1,584,553 | 2,504,337 | 2,491,066 | 2,392,587 |
| Net income (Thousand yen) | 1,763,333 | 717,425 | 1,288,823 | 810,700 | 1,619,609 |
| Comprehensive income(Thousand yen) | 1,034,958 | 1,111,978 | 3,892,605 | 2,492,276 | 9,574,105 |
| Net assets (Thousand yen) | 44,613,092 | 45,372,473 | 49,060,892 | 50,129,928 | 59,548,303 |
| Total assets (Thousand yen) | 71,903,311 | 77,783,681 | 81,814,724 | 85,596,576 | 97,248,906 |
| Book value per share (yen) | 669.44 | 680.36 | 734.01 | 749.03 | 891.80 |
| EPS (yen) | 28.10 | 11.43 | 20.55 | 12.93 | 25.83 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 58.4 | 54.9 | 56.3 | 54.9 | 57.5 |
| ROE (%) | 4.2 | 1.7 | 2.9 | 1.7 | 3.1 |
| PER | 11.7 | 30.0 | 15.9 | 23.3 | 13.1 |
| Cash flow from operating activity (Thousand yen) | 6,055,346 | 4,009,233 | 3,196,826 | 3,243,196 | 4,320,409 |
| Cash flow from investment activity (Thousand yen) | (3,283,821) | (3,607,228) | (5,445,776) | (4,462,296) | (3,713,269) |
| Cash flow from financial activity (Thousand yen) | (929,501) | (479,427) | (88,209) | 1,967,491 | (303,032) |
| Balance of cash and cash equivalents (Thousand yen) | 12,911,538 | 12,746,606 | 10,203,659 | 11,032,231 | 11,803,564 |
| Number of employees | 4,222 | 4,269 | 4,346 | 4,408 | 4,349 |
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 (Thousand yen) | 52,934,987 | 54,626,797 | 56,207,009 | 54,796,063 | 52,306,525 |
| Income from ordinary business activities (Thousand yen) |
1,256,913 | 434,817 | 1,612,659 | 928,306 | 1,130,657 |
| Net income (Thousand yen) | 1,274,730 | 20,754 | 899,944 | (146,407) | 1,002,898 |
| Paid-in Capital (Thousand yen) | 10,837,208 | 10,837,208 | 10,837,208 | 10,837,208 | 10,837,208 |
| Number of shares outstanding | 63,855,994 | 63,855,994 | 63,855,994 | 63,855,994 | 63,855,994 |
| Net assets (Thousand yen) | 41,007,510 | 41,257,388 | 43,396,018 | 43,985,167 | 48,904,467 |
| Total assets (Thousand yen) | 61,312,108 | 66,116,422 | 67,026,052 | 68,521,613 | 74,954,675 |
| Book value per share (yen) | 653.04 | 657.14 | 691.60 | 701.33 | 780.13 |
| Dividend per share (yen) | 8.00 | 7.00 | 8.00 | 8.00 | 8.00 |
| EPS (yen) | 20.31 | 0.33 | 14.35 | (2.33) | 16.00 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 66.8 | 62.4 | 64.7 | 64.2 | 65.2 |
| ROE (%) | 3.1 | 0.1 | 2.1 | (0.3) | 2.2 |
| PER | 16.2 | 1,039.4 | 22.7 | - | 21.1 |
| Payout ratio (%) | 39.4 | 2,121.2 | 55.7 | - | 50.0 |
| Number of employees | 1,548 | 1,546 | 1,528 | 1,471 | 1,441 |