Topre Corporation Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change (%) Factors
Sales 111,630 91,534 22.0 -
Operating income 13,605 8,080 68.4 -
Ordinary income 15,676 10,303 52.1 -
Current net income 11,577 5,849 97.9 -
Press products
Sales 70,616 53,370 32.3 1)
Operating income 10,670 6,503 64.1 2)

1) Press products: Sales
-Vehicle production and sales were buoyed by an increase in consumer buying during the second half of the year, prior to the April 1 consumption tax hike. Sales at the Company, however, slightly decreased from the previous year due to consumers' shift towards compact and mini vehicles, in which few of the Company's products are used.

-Overseas sales significantly increased from the previous year thanks mainly to favorable business at Topre America Corporation. Full-scale operations at Topre (Foshan) Autoparts Corporation in China also contributed to the sales gain.

2) Press products: Operating Profit
-Operating profit at the division grew significantly year-on-year. The Company won increased orders from overseas customers, released products for new models, and began operations at its new China plant smoothly.

New Plant in Thailand

-In 2013, the Company announced that it will construct an automotive stamping parts plant in Thailand. With a total investment of approximately JPY 6 billion (USD 60.6 million), the new plant will become operational in April 2015. Sales are expected to reach approximately JPY 5 billion (USD 50.5 million) in the fiscal year ending March 2018. The new plant will be Topre's third Asian manufacturing site, following its two Chinese plants in Foshan (Guangdong Province) and Xiangyang (Hubei Province). (From a press release on September 13, 2013)

U.S. Operations

-The Company will provide its hot-stamped auto body frame components for more models in the U.S. Recently, more Japanese automakers are choosing the hot-stamped components for particular areas which require extraordinary strength. Topre, therefore, is trying to meet this growing demand by increasing its supply from a U.S. manufacturing base. This month, the company became the first Japanese parts supplier to start production of hot-stamped auto body frame components in the U.S and is starting the local supply for the Honda Odyssey. It also won orders from Honda for the large-size SUV to be manufactured at the automaker's Alabama plant, as well as Nissan. Topre completed the investment in the additional hot stamping equipment in Topre America Corporation, its US manufacturing base in Alabama, which allows the company to fully utilize the existing facilities to meet the increasing demands for the hot-stamped products for the time being. Domestically, the company delivers the hot-stamped body frame components for Nissan's luxury sedans from its Sagamihara Plant. (From an article in the Nikkan Jidosha Shimbun on Jun 14, 2013)

New Plant in Japan

-The Company will establish a new assembly plant in Suzuka, Mie Prefecture, Japan. The new plant will perform final assembly of outer panel components for mini vehicles and supply the parts to Honda Motor's Suzuka Factory, starting in the fall of 2014. Setting up the new plant near Honda's facility will contribute to enhancing overall efficiency, while saving distribution costs for the large products, which meets the customer's requirement. Topre recently received a new contract from the automaker to supply tailgates for mini vehicles. Stamping parts for the tailgates will be produced at Topre's Sagamihara Plant (Kanagawa Prefecture) and assembled at the new Suzuka Plant. Meanwhile small parts other than stamping products will be procured locally and assembled at the new facility. (From an article in the Nikkan Jidosha Shimbun on Jun 3, 2013)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Outlook for FY ending Mar. 2015

(in millions of JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of change
Sales 122,000 111,630 9.3
Operating income 11,500 13,605 (15.5)
Ordinary income 11,500 15,676 (26.6)
Net income 7,000 11,577 (39.5)


R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 1,053 1,006 1,047


R&D Activities

Press products Business
-The Company started mass-producing hot-stamped automotive components in North America.
-The Company is currently mass-producing cold-pressed body components with a strength level of 1,180MPa. It aims to commercialize cold-pressed body components with higher strength levels.
-The Company is working on developing module products. It performs CAE analysis and is developing laser welding technologies to join multiple components.

Technical Alliances Outside Japan

(As of Mar. 31, 2014)
Company Country Products Associates Contract Period
Sunrise Machinery Co., Ltd. China Automotive stamped products and dies Providing technical information and expertise
From August 31, 2012 until February 17, 2019

Investment Activities

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Press products Business 11,445 15,073 7,560
-The Company 2,452 2,938 2,326
-Subsidiaries 8,925 12,016 5,196
Overall 11,838 17,477 8,127


Press products Business
-JPY 11,445 million for facilities and equipment
  • JPY 2,452 million mainly for dies used for stamping automotive parts.
  • JPY 8,925 million mainly for press equipment to produce automotive components at Topre Kyushu Corporation, Topre America Corporation, Topre (Foshan) Autoparts Corporation, Topre (Xiangyang) Autoparts Corporation, and Topre Autoparts Mexico, S.A. de C.V.

New Facility (Stamped-products business)

Name Type of facility Planned total investment
(in million JPY)
Start End Increased capacity upon completion
Sagamihara Office Facility for molds used in making stamped, automotive parts 1,227 Mar. 2014 Mar. 2015 About the same
Topre Autoparts Mexico,S.A de C.V. New equipment to manufacture automotive press products
1,033 Jan. 2014 Dec. 2014 -
Topre (Thailand) Co., Ltd. New plant to manufacture automotive press products 8,000 May 2014 July 2015 -
Topre Kyushu Corporation New plant to manufacture automotive press products 2,500 Mar. 2014 Oct. 2015 -