[Gen-AI Analysis] TEITO RUBBER Co,. Ltd. Business Report FY2010 - MarkLines Automotive Information & Gen-AI Platform

TEITO RUBBER Co,. Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of change (%)	Remarks
Sales	8,545	7,411	15.3	Sales in Japan increased year-on-year due to the greater volume of vehicle units produced by the Company’s customers because of the growing demand in developing countries. In China also, vehicle production volume increased as a result of continued economic growth in the country.
Operating income	459	303	51.5	-
Ordinary income	437	248	76.2	-
Current net income	419	229	83.0	-

The Company will increase its stake in Teito Rubber Co., Ltd. to turn the company into its wholly-owned subsidiary. Kinugawa now holds 66.98 percent stocks of Teito Rubber. By complete acquisition of the company, Kinugawa plans to construct a comprehensive corporate structure from manufacture of body seal, anti-vibration parts and hoses up to sales operations. (From a press release on May 12, 2011)

R&D

R&D Activities

Recent Developments
-Fuel hoses that reduce fuel-vapor permeation to zero.
-Fuel hoses that can be used with bio diesel fuel.
-R&D on hoses for hybrid, electric, and fuel cell vehicles is on going.

Licensing of Technology from Other Companies

(As of Mar. 31, 2011)

Company name	Country	Technology	Contract period
Meiji Rubber & Chemical Co., Ltd.	Japan	Manufacturing technology for medium- and high-pressure hoses	Five years from Sep. 27, 1989 (Automatic renewal from then on)

Licensing of Technology to Other Companies

(As of Mar. 31, 2011)

Company Name	Country	Contract	Contract period
Meiji Rubber & Chemical Co., Ltd.	Japan	Licensing of patent rights for TS-type process heads and technologies concerning continuous processing of cloth reinforced rubber hoses (under TS method).	Five years from Sep. 27, 1989 (Automatic renewal from then on)
Orion Rubber Mfg. Corp.	Philippines	Licensing of patent rights for TS-type process heads and technologies concerning continuous processing of cloth reinforced rubber hoses (under TS method), and technical partnership for manufacturing braided rubber hoses using the TBL method developed by the Company.	Five years from Feb. 27, 1992 (Automatic renewal from then on)
Kasmina	Vietnam	Technologies for manufacturing single-layer rubber hoses.	One year from July 1, 1998 (Automatic renewal from then on)
		Technical assistance for outer braided/inner braided hoses.	One year from Mar. 30,2005 (Automatic renewal from then on)
		Technical assistance for spiral hoses.	Five year from Mar. 30, 2005 (Automatic renewal from then on)
Indocarlo	Indonesia	Technical assistance for manufacturing of fuel hoses/breather hoses (single-layered/double-layered rubber hoses without braid reinforcement) for motorcycles and water hoses (braid-reinforced rubber hoses) for automobiles.	Seven year from Sep. 3, 2004 (Automatic renewal from then on)
Indocarlo	Indonesia	Technical assistance for manufacturing fuel hoses and master vacuum hoses for automobiles	Seven years from Sep. 30, 2005 (Automatic renewal from then on)

Investment Activities

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	68	57	187

-The main purposes for the capital investments were to make the Company's facilities producing hoses more efficient, fix and upgrade facilities according to a set schedule, meet environmental and safety requirements, and respond to new car launches.

Planned Capital Investments

(As of Mar. 31, 2011)

Segment	Estimated amount of investment （FY2011）
Rationalization	6
Upgrading the main system	14
Test facilities	6
Quality improvements/Others	12
Cored bars and tools	30
Total	68