FINESINTER CO.,LTD Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of
Sales 34,466 31,635 8.9 -
Operating income 2,285 1,433 59.5 -
Ordinary income 2,072 1,268 63.4
Net income 1,061 1,104 3.9
Powder metallurgy product business
Sales 32,548 30,094 8.2 -Sales increased year-on-year as a result of winning a greater volume of orders for auto parts from its major customers.
Operating profit 3,399 2,560 32.8 -Operating profit increased year-on-year due to the benefits achieved from the Company’s profit-improvement initiatives.

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

Performance Forecast

(in millions of JPY)
Rate of Change(%)
Sales 33,600
Operating income
1,900 2,285 (16.8)
Ordinary income
1,900 2,072 (8.3)
Net income
1,100 1,061 3.7


R&D Expenditures

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 240
248 286

R&D Structure

Powder metallurgy product business
-The Company used to have a Technology Development Center and a  Production Technology Department, which were in charge of R&D for automotive parts. But the Company streamlined its organization in January 2010, integrating these two functions into the new Development, Production and Engineering Department.

-The Company and Toyota Motor launched a technical liaison team, which is setting the direction for developing sintered products and clarifying the individual roles and responsibilities in starting R&D activities.

R&D Activities

Materials R&D
-The Company is working to develop low-cost materials made from alloys that do not contain expensive rare metals.

-The Company completed standardizing high-strength sintered materials and is achieving cost savings by switching over to using these materials in its existing products. 

Valve seat Materials R&D
-The Company completed switching over to using these valve-seat materials in mid-sized engines and is planning to further develop them over time.

Equipment R&D
-The Company started mass-producing shock-absorber parts on its revolutionary production line conducting molding, sintering, and sizing, and which is capable of handling mixed production in small lots in only a single change-over. This production line was made leaner and slimmer and was developed to radically reduce costs. 

Investment Activities

Investment Expenditures

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 1,986
1,146 3,444
Powder metallurgy product business 1,963
1,142 3,434

-The company made the following capital investments in its powder metallurgy business: plant buildings (138 million yen); structures (45 million yen) machinery (655 million), transport vehicles (8 million yen), tools and fixtures (706 million), and Other (408 million yen).

New Facilities

(As of Mar. 31, 2011)

Company Name Location Business Planned investment
(million JPY)
Start Completion Production capacity increase on completion
Precision Sintered Products (Wuxi) Co., Ltd. Jiangsu Prov.,
New facility and building for manufacturing powder metallurgy products 447 Jun.