TBK CO., LTD. Business report FY2006
Business Highlights
| In million JPY | FY2006 | FY2005 | Rate of Change(%) | Factors |
| Overall | ||||
| Sales | 41,974 | 41,122 | 2.1 | |
| Operating income | 3,458 | 3,860 | 10.4 | Decreased due to a sales decline of overseas subsidiaries and increase in material price |
| Ordinary income | 3,327 | 3,617 | （8.0） | |
| Current net income | 1,666 | 2,515 | （33.8） | Decreased due to an increase in tax burden |
| Automotive component manufacturing business | ||||
| Sales | 41,436 | 40,584 | 2.1 | 1.5% increase in the sales of automotive brakes year-over-year basis due to a slight increase in domestic truck sales. 6.6% increase in the sales of automotive pumps year-over-year basis. Slowdown in sales of overseas subsidiaries |
| Operating income | 4,317 | 4,644 | (7.0) | Operating income decreased due to the increase in material price, despite the company's efforts such as reduction in overall cost based on overall production increase and rationalization effect of new investment, effective utilization of existing facilities among domestic and overseas bases, and improvement in product quality |
Domestic business
Operation start of Fukushima No.2 Plant
Fukushima No.2 Plant, obtained at the end of FY 2006, started operation as
a base for engine component business and water pump business.
Overseas business
Expansion and enhancement of overseas business
The company started operation of a plant for pumps and engine related
parts in the USA, as well as received more new orders in Asia, Europe, and
the USA.
Response of development department to new order winning activities
It developed brakes, pumps, etc. in line with an increase in new orders
received from domestic and overseas customers.
R&D
R&D Section
-The following departments are engaged in R&D activities: No. 1 Development
Dept., No. 2 Development Dept., No. 3 Development Dept., No.4 Development
Dept., and the Experiment Department.
-The total number of research staff members at companies in the group
was 77, which account for about 6% of the total number of employees.
-Total R&D expenses were 929 million yen in FY2006.
Brake Business
-Transition to full air brake system completed in all domestic truck manufacturers,
and an air wedge drum brake for heavy-duty vehicle was adopted by more
vehicle models.
-The company developed a new drum brake for medium-duty vehicles for
major domestic manufacturers.
-The Company is developing an air disk brake as the next-generation, modularized
brake. It has high reliability and includes proprietary pads and rotors.
-The Company is conducting research and development activities, which
are focusing on safer, environmentally friendly, and energy-saving products,
accumulating its technology and passing it on to engineers for the future.
-R&D expenses were 581 million yen in FY2006.
Pump Business
・The company promoted the improvement and development of water
and oil pumps for small to large engines.
･The company developed water and oil pumps for engines of domestic
OEMs which meet the new long term exhaust emission regulations.
-The Company won a new contract to develop a water pump, from a major
engine maker overseas.
-R&D expenses were 261 million yen in FY2006
Other divisions
・The use of retarder has expanded for small, medium, and
heavy-duty vehicles and buses, as it is regarded as a suitable device
for engines designed to meet the exhaust emission regulations.
-The Company worked on enhancing its product mix of retarders, in addition
to increasing the number of vehicle models on which they can be adopted.
-R&D expenses were 86 million yen in FY2006.
Contracts for receiving technical assistance (as of March 2007)
| Name of the contractor | Country | Contract item | Contract coverage | Contract period |
| ARVIN MERITOR CORP. | UK | Brake parts for large trucks | 1: To set the rights for establishing industrial property rights. 2: To supply technical information 3: To grant manufacture and sales licenses |
From March 8, 1991 to March 6, 2011 |
Contracts for giving technical assistance (as of March 2007)
| Name of the contractor | Country | Contract item | Contract coverage | Contract period |
| SANGSHIN BRAKE IND. CO., LTD. | Korea | Brakes for large vehicles | 1: To set the rights for establishing industrial property rights. 2: To supply technical information 3: To grant manufacture and sales licenses |
January 14, 1994 10 years from the mass production starting date Automatic extension every year |
| Hangzhou TBK-APG Brakes Co., Ltd. | China | Same as above | Same as above | July 30, 2003 10 years from the mass production starting date. Automatic extension every year |
| TBK INDIA PRIVATE LTD. | India | Water pumps and oil pumps for automobiles | Same as above | June 28, 1998 7 years from the new products mass production starting date |
| GSB-TBK AUTOMOTIVE COMPONENTS, S.L. | Spain | Same as above | Same as above | June 7, 2000 10 years from the mass production starting date Automatic extension every year |
| TBK America, Inc. | USA | Same as above | Same as above | November 15, 2006 10 years from the initial payment date. Renewal every year |
Investment Activities
Capital investment
| Unit: Million JPY | FY2006 | FY2005 |
| Brake production facilities | 790 | 824 |
| Pump production facilities | 642 | 618 |
| Companywide | 3,630 | 3,027 |