T.RAD Co., Ltd. Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 87,530 | 89,383 | (2.1) | - |
Operating income | 2,636 | 4,146 | (36.4) | - |
Ordinary income | 3,281 | 4,689 | (30.0) | - |
Net income | 915 | 2,981 | (69.3) | - |
Automotive Heat Exchangers | ||||
Sales | 50,283 | 43,561 | 15.4 | 1) |
Factors
1) Sales Performance of Automotive Heat Exchangers
<Japan>
-Sales fell 4.3% year-on-year because of the decrease in vehicle sales in Japan after the eco-car sales incentives ended, and because of lower sales of vehicles that the Company was supplying products to during the year.
<USA>
-Sales grew 34.5% year-on-year, thanks to a rebound in production, which had been low because of the Great East Japan Earthquake the previous year; and a recovery in orders.
<Europe>
-Compared to the previous year, sales fell 29.3% in Italy, 19.2% in the Czech Republic, and 7.9% in Russia.
<Asia>
-Sales in Asia increased 62.1% overall, with revenue growth in Indonesia at 76.2% because of a high level of orders. In Thailand, sales grew 57.3% year-on-year, in spite of being negatively impacted in the beginning of the year from the flooding.
<China>
-Sales, which fell 9.8% year-on-year, were negatively impacted by the severe drop in orders starting from September 2012 because of the tense political situation between Japan and China.
Development Outside Japan
<Thailand>-The Company will commence its full scale production of Exhaust Gas Recirculating (EGR) coolers in Thailand. By installing dedicated equipment at its existing plant, the Company plans to start volume production of coolers as early as the middle of 2012 on a scale of 200,000 pieces a year. In Thailand, Japanese automakers are increasing a turnout of vehicles in response to the government program for promoting environmentally friendly vehicles, including those equipped with EGR coolers contributing to improving fuel efficiency and reducing exhaust gases. The Company is poised to meet the challenge by boosting its local production capacity. (From an article in the Nikkan Jidosha Shimbun on April 25, 2012)
Medium-term Management Plan "T.RAD-9" (2010-2013) |
(in billions of JPY) |
FY ended Mar. 31, 2013 (Target) |
FY ended Mar. 31, 2013 (Result) |
FY ending Mar. 31, 2014 (Target) |
|
Consolidated sales | 93.5 | 87.5 | 94.2 |
Ordinary profit ratio | 5.7% | 3.7% | 5.6% |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Japan | 2,271 | 1,926 | 1,890 |
USA | 23 | 14 | 9 |
Europe | 17 | 1 | 13 |
Asia | 28 | 15 | 29 |
China | 67 | 212 | 170 |
Total | 2,409 | 2,170 | 2,114 |
R&D Facilities
Facility | Location |
Research and development center | -Aichi, Japan -Kanagawa, Japan |
Production engineering development center | -Shiga, Japan -Aichi, Japan |
TACO/T.RAD R&D Center | -Pune, India |
R&D Activities
1. Developing new products and improving existing products<New business area>
-The Company develops cooling systems for hybrid vehicles, electric vehicles and fuel-cell vehicles in the green-car area.
<Current business areas>
-The Company works to further improve the performance and reduce the size and weight of its existing products, as well as to develop lower cost products. The Company also works to modularize and systemize its cooling system products and develop recyclable products and heat exchangers that improve engine exhaust emissions and fuel economy.
2. Basic Research
-The Company is conducting basic research on materials and new processing technologies. It is especially focused on stainless-steel materials for heat exchangers, nickel brazing filler metals, surface-treatment methods, and joint-connecting technology.
Licensing of Technology to Other Companies |
(As of Mar. 31, 2013) |
Partner (Country) |
Contract | Contract period |
PT. Batarasura Mulia (Indonesia) |
Manufacturing technology for radiators | Dec. 2009 - Dec. 2014 |
Tata Toyo Radiator Ltd. (India) |
Manufacturing technology for radiators | Jan. 2013 - Dec. 2019 |
Torc Co., Ltd. (Thailand) |
Manufacturing technology for radiators | Jun. 1990 - undetermined |
Quingdao Toyo Heat-Exchanger Co., Ltd. (China) |
Manufacturing technology for aluminum heat exchangers | Apr. 2013 - Mar. 2018 |
JHS Taigene Pvt. Ltd. (India) |
Manufacturing technology for motors | Aug. 2012 - Aug. 2013 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Japan (Stand alone) | 1,972 | 2,559 | - |
USA | 1,146 | 281 | - |
Europe | 168 | 628 | - |
Asia | 837 | 1,083 | - |
China | 733 | 375 | - |
Other | 38 | 57 | - |
Overall | 4,897 | 4,986 | 2,589 |
New Facility Installations
-The planned investment in establishing new facilities and making other improvements is 5,800 million yen, as of Mar. 31, 2013.Facility (Location) |
Equipment to be installed | Planned investment amount (million JPY) |
Starting | Planned completion |
Hatano Works (Kanagawa, Japan) |
Equipment to produce radiators, etc. | 641 |
Aug. 2012 |
Mar. 2014 |
Nagoya Works (Aichi, Japan) |
Equipment to produce radiators, etc. | 690 |
Apr. 2013 |
Mar. 2014 |
Shiga Works (Shiga, Japan) |
Equipment to produce radiators, etc. | 618 |
June 2012 |
Mar. 2014 |
T.RAD North America Inc. (Kentucky, U.S.A) |
Equipment to produce radiators, etc. | 561 |
Jan. 2013 |
Dec. 2013 |
PT. T.RAD Indonesia (Bekasi, Indonesia) |
Equipment to produce radiators, etc. | 638 |
Jan. 2013 |
Dec. 2013 |
T.RAD (Changshu) Co., Ltd. (Jiangsu, China) |
Equipment to produce radiators, etc. | 666 |
Jan. 2013 |
Dec. 2013 |
T.RAD (Vietnam) Co., Ltd. (Hanoi, Vietnam) |
Equipment to produce radiators, etc. | 534 |
Jan. 2013 |
Dec. 2013 |