Finesinter CO.,LTD Business Report FY2007
|(in million JPY)||FY2007||FY2006|| Rate of
|Sales||41,887||37,602||11.4||Sales rose due to increasing sales in the powder metallurgy products business, despite decreased sales in the hydraulic machinery products business.|
|Operating income||2,049||1,271||61.2||Profit declined for the Company as the sales increase did not cover price hikes for materials. Operating income, ordinary income, and net income increased due to increased earnings at its overseas operations.|
|Powder metallurgy product business|
|Sales||39,890||35,564||12.2||The sales in this segment increased due to an increase in orders the Company won from its major customers.|
Recent developments in Japan
-Sales for FY2007 ended March, 2008 were 36,582 million yen, a 6.7% increase year-on-year, supported by strong sales in the automotive industry.
-Operating income increased by 0.1% to 1,186 million yen due to higher raw-material prices and reduced sales prices.
Relocation of the headquarters
-The Company constructed a new headquarters building in Kasugai city, Aichi prefecture, in January 2008, and moved its headquarters and technology departments there.
Recent developments in markets outside
-Sales for this region increased by 82.6% year-on-year to 4,506 million yen, as the Company started commercial production in China.
-Operating income increased by 2,591.8% year-on-year to 799 million yen due to steady production in Thailand and China.
-The sales in this region rose by 8.7% year-on-year to 1,724 million yen. The increase in orders for the Company's automotive parts in the U.S. contributed to the increased sales.
-Operating income increased by 76.5% year-on-year to 92 million yen as a result of the Company's efforts to improve its production structure and reduce manufacturing costs
Challenges for the future
While the Company achieved a surplus in operating income at all its facilities in Thailand, North America and China, the revenue loss continued to exceed the revenue gain in North America. As a top priority, it will work to restore profitability at all its facilities, and to clear the cumulative losses as soon as possible.
The Company established headquarters in Kasugai city, Aichi prefecture, in January 2008, and integrated its technical departments such as Technical Development Center, the Production Technology department, and the die mold making department there.
|(in millions of JPY)||FY2007||FY2006||FY2005|
|Powder metallurgy product business||327||363||370|
Powder metallurgy product business (FY2007)
-In the area of materials, the Company developed an inexpensive material for valve seats, which has equivalent wear resistance to existing materials . This material was adapted for use in intake the system, and commercial production will start in FY2008 (ending March 2009).
-The Company completed the basic evaluation of high-strength materials which it had developed over a long period. It will start the evaluation of commercially produced products and replacement of conventional products with the new ones as soon as possible.
-In terms of its process and facilities, the Company successfully developed a press machine for exclusive use in producing valve seats. The Company's DE department (die development department) and the product technology department have succesfully and jointly engaged in developing a compact die set for shock absorber components. The new compact die set is expected to contribute to prolonged life of die and reduced die cost.
|(in million JPY)||FY2007||FY2006||FY2005|
|Powder metallurgy product business||4,806||5,302||4,539|
In the powder metallurgy product business, the Company invested 3,351million yen in acquiring machinery and equipment and 914 million yen in upgrading dies.
Capital investment currently underway
(in million JPY)
capacity after completion
|Manufacturing facility for powder metallurgy products||555||Jun.
|Slight increase in production capacity|