T.RAD_Business report FY2008
Business Highlights
In million JPY | FY2008 | FY2007 | Rate of change |
Remarks |
Consolidated | ||||
Sales | 90,627 | 110,737 | (18.2) | -In Japan, Sales of heat exchangers for automobiles and construction machinery decreased as a result of inventory adjustments made by customers. Sales of heat exchangers for air-conditioning decreased substantially as a result of production transfer to overseas facilities and self-manufacture by customers. -Outside Japan, sales of heat exchangers for construction machinery increased in Asia thanks to an increase in new orders. However, total sales decreased substantially due to a decline in production at customers in North America, a decrease in sales of products for automotive air-conditioners in Asia, a decrease in sales of products for automobiles and construction machinery in Europe, as well as the effects of foreign exchange fluctuation. |
Operating income | (990) | 3,696 | - | -At T.RAD itself, income and profit decreased due to a substantial decline in sales. -At its overseas subsidiaries, income decreased due to a decline in sales and the cost of preparation for producing new products at its subsidiaries in Europe and Asia. |
Ordinary profit | (1,532) | 4,013 | - | |
Net profit | (4,078) | 2,882 | - | |
Automotive Heat Exchangers | ||||
Sales | 43,090 | 52,534 | (18.0) | - At T.RAD itself, sales substantially decreased due to inventory adjustment by customers. At its overseas subsidiaries, sales of products for motor cycles increased at T.RAD (Thailand) Co., Ltd. and sales of products for smaller cars increased thanks to new orders received. - -Sales substantially decreased at T.RAD North America, Inc. due to a sales slump in SUV vehicles and other reasons. -Sales also decreased in China and Europe. |
Establishing New Subsidiaries
-Driven by anticipated growth in demand for aluminum heat exchangers in the Indonesian market, the Company has decided to set up a new manufacturing company in Indonesia. The Company plans to establish a new subsidiary, PT. T.RAD INDONESIA, around June 2008 and build a manufacturing facility in the Jababeka Industrial Park, Bekasi. See "Investment"
Outlook for 2009
1. Sales Forecast
Sale forecast for automotive heat exchangers business
in million JPY | FY2009 (Estimate) | FY2008 |
T. RAD | Approx. 19,600 | Approx. 29,800 |
T. RAD North America (TRA) | Approx. 7,200 | Approx. 8,500 |
T.RAD (Thailand) Co., Ltd. (TRT) PT. T.RAD Indonesia (TRIN) |
Approx. 2,800 | Approx. 3,700 |
T.RAD ITALIA S.p.A. (TRI) | Approx. 900 | Approx. 1,400 |
Toyo Radiator (Zhongshang) Co., Ltd. (TRZ) | Approx. 1,600 | Approx. 1,100 |
T.RAD Czech s.r.o. (TRC) | Approx. 400 | Approx. 100 |
Domestic subsidiaries and adjustments | (Approx. 1,000) | (Approx. 1,500) |
Total | Approx. 31,500 | Approx. 43,100 |
2. Deployment of 5-pole global production system
2009
T.RAD North America, Inc. | Dec. 2009 Dec. 2009 |
-To start mass production of oil coolers for local market -To start mass production of EGR coolers for local market |
T.RAD (Thailand) Co., Ltd. | 2009/Second half |
To start mass production of EGR coolers for Japanese automakers |
Toyo Radiator (Zhongshang) Co., Ltd. | Jul. 2009 | To start mass production of passenger car radiators for Japanese automakers |
PT. T.RAD Indonesia | Jul. 2009 | To start mass production of motor cycle radiators for Japanese automakers |
T.RAD North America, Inc. | 2010/First half 2010/Second half |
-To start mass production of multipurpose vehicle radiators for the local market -To start mass production of large module heat exchangers for the local market |
T.RAD (Thailand) Co., Ltd. | Feb. 2010 | To newly start mass production of passenger car radiators for Japanese automakers |
Toyo Radiator (Zhongshang) Co., Ltd. | Jun. 2010 | To newly start mass production of passenger car radiators for Japanese automakers |
T.RAD Czech s.r.o. | May 2010 | To start mass production of additional models of passenger car EGR cooler for Japanese automakers |
PT. T.RAD Indonesia | Jan. 2010 | To newly start mass production of inter coolers for Japanese automakers |
OOO TRM | Jan. 2010 | To newly start mass production of radiators for the local market |
R&D
-R&D expenses (consolidated) in FY 2008 (ended Mar 2009) were 2,490 million yen.
-Number of industrial property rights secured by the end of March 2009 was 154.
Manufacture and sales of heat exchangers
1. ) Developing new products and improving existing products
<New business area>
- In the environment-and-energy-related area, the Company developed new products for the fuel cell sector. The Company worked on new products for the sector+ dealing with electric generation systems based on gas from waste materials, and cooling systems for electronic devices.
- Automotive fuel cells: The Company continuously improves products in order to further improve the performance of existing heat exchangers.
<Electronic device cooling area>
- Developing cooling systems for hybrid cars and PCs.
<Current business areas>
- The Company is now working to develop products with higher performance, and which are lighter weight and lower in costs.
- Modularizing and systemizing cooling systems.
- Developing recyclable products and a heat exchanger that improves engine emissions.
2. ) Basic Research | ||
- - - |
Basic research on materials and new machining technology Researching stainless steel as a material for use in high temperature heat exchangers Research on nickel solder material, surface treatment, and welding technology |
|
- | Improving efficiency by improving fundamental technology | |
- | Working on consignment from, and conducting joint-development with, external organization such as universities. |
Licensing of technology to other companies (as of March 2009)
Partner | Contract | Contract Period |
Indonesia PT.Batarasula Mulia |
Manufacturing technology for Radiators | 2004.12.16 - 2009.12.15 |
Pakistan Loads Ltd. |
Manufacturing technology for Radiators | 2005.10.30 - 2010.10.29 |
India Tata Toyo Radiator Ltd. |
Manufacturing technology for Radiators | 2006.01.01 - 2012.12.31 |
Thailand Torc Co., Ltd. |
Manufacturing technology for Radiators | 1990.06.08 - |
Thailand Alexon Co., Ltd. |
Manufacturing technology for Radiators | 2003.02.11 - 2008.02.10 |
Thailand Radicon Co., Ltd. |
Manufacturing technology for Radiators | 2003.02.11 - 2008.02.10 |
China Qindao Radiator Co., Ltd. |
Manufacturing technology for Radiators | 2002.10.29 - 2007.10.28 |
China Qindao Radiator Co., Ltd. |
Manufacturing technology for Radiators | 2003.02.14 - 2008.02.13 |
Taiwan Rising Sun Heat Exchanger Industry Co., Ltd. |
Manufacturing technology for Radiators | 2005.03.08 - 2013.03.07 |
China Toyo Heat Exchanger (Qingdao) Co., Ltd. |
Manufacturing technology for aluminum heat exchangers | 2005.03.31 - 2013.03.31 |
China Toyo Radiator (Qingdao) Co., Ltd. |
Manufacturing technology for Radiators | 2005.07.05 - 2010.07.04 |
Investment Activities
- To respond to new orders received
- T. RAD 5,125million JPY
- T. RAD Italia S.p.A. 473million JPY
- Toyo Radiator (Zhongshang) Co., Ltd. 399million JPY
- T.RAD Indonesia 367million JPY
Overseas Investment
<Indonesia>
-Driven by anticipated growth in demand for aluminum heat exchangers in the Indonesian market, the Company has decided to set up a new manufacturing company in Indonesia. The Company plans to establish a new subsidiary, PT. T.RAD INDONESIA, around June 2008 and build a manufacturing facility in the Jababeka Industrial Park, Bekasi. The total investment will be approximately 1 billion yen. The production of motorcycle radiators currently handled by the manufacturing arm in Thailand will be transferred to the new facility in Indonesia. The new plant will also produce aluminum radiators and inter-coolers for motorcycles, passenger cars, and commercial vehicles. The Company is aiming at achieving 1.4 billion yen in sales with an annual production capacity of 480 thousand units at the site in 2010. (From a press release on Apr. 23, 2008)
New Facility Installations
Company Office |
Location | Planned investment amount (million JPY) |
Starting | Planned completion |
Hadano Works | Kanagawa Pref., Japan | 1,138 | Sept. 2008 | Mar. 2010 |
Nagoya Works | Aichi Pref., Japan | 466 | Mar. 2009 | Mar. 2010 |
Shiga Works | Shiga Pref., Japan | 744 | Mar. 2009 | Mar. 2010 |