T.RAD Co., Ltd. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 95,248 | 87,530 | 8.8 | - |
Operating income | 4,145 | 2,636 | 57.2 | - |
Ordinary income | 4,999 | 3,281 | 52.4 | - |
Net income | 2,046 | 915 | 123.6 | - |
Automotive Heat Exchangers | ||||
Sales | 58,390 | 50,283 | 16.1 | 1) |
Factors
1) Sales Performance of Automotive Heat Exchangers
<Japan>
-Sales of automotive products fell slightly year-on-year due to the end of the eco-car sales incentive program, in spite of strong orders for products used on hybrid and economy cars.
<USA>
-Sales of automotive products fell slightly year-on-year because of lower demand for products used on military vehicles.
<Europe>
-Sales of automotive products increased year-on-year, thanks to strong sales of vehicle models in the Czech Republic, which the Company supplies products to, after they underwent model changes.
<Asia>
-Sales of automotive products significantly increased year-on-year, thanks to increased orders for products used on motorcycles in Thailand and Indonesia.
<China>
-Sales of automotive products increased significantly year-on-year because mass-production of vehicle models, which the company received new orders for, increased; and because orders increased, after they had fallen the year before because of the tense political relations between Japan and China.
Joint Venture
<India>-In 2013, the Company and Tata AutoComp Systems Ltd. (TACO) announced that their India-based joint venture, Tata Toyo Radiator (TTR), has signed a contract with Air International Thermal Systems, a major HVAC supplier, to establish a 50-50 joint venture. Capitalized at approximately JPY 300 million (USD 2.86 million), the new company will construct a plant in Pune, India to produce HVAC systems for Tata Motors. TTR, based in Pune, manufactures aluminum radiators, intercoolers, and heater cores. Customers include Tata Motors, Ashok Leyland, Fiat, Force Motors, and Mahindra & Mahindra. (From a press release on December 19, 2013)
Reorganization
-In 2013, the Company announced that it will transfer its entire 100 percent stake (450,000 shares) in its subsidiary T.RAD Italia S.p.A. to the local management team. The subsidiary manufactures and sells heat exchangers. The transaction is expected to conclude at the end of September 2013 with a sales value of EUR 10 (approximately JPY 1,310). The Company also intends to integrate its European businesses into its subsidiary in the Czech Republic. (From a press release on August 2, 2013)
Medium-term Management Plan "T.RAD-10" (Target: FY ending Mar. 31, 2018) |
(in millions of JPY) |
FY ending Mar. 31, 2015 (Target) |
FY ending Mar. 31, 2016 (Target) |
FY ending Mar. 31, 2017 (Target) |
FY ending Mar. 31, 2018 (Target) |
|
Consolidated sales | 97,600 | 108,000 | 112,000 | 120,000 |
Ordinary profit ratio | 4.6% | 8.5% | 9.5% | 10.5% |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Japan | 2,648 | 2,271 | 1,926 |
USA | 22 | 23 | 14 |
Europe | 11 | 17 | 1 |
Asia | 77 | 28 | 15 |
China | 34 | 67 | 212 |
Total | 2,794 | 2,409 | 2,170 |
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 |
North America R&D Center | - |
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, 2014) |
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 | Jan. 2014 - Dec. 2014 |
Quingdao Toyo Heat-Exchanger Co., Ltd. (China) |
Manufacturing technology for aluminum heat exchangers | Apr. 2013 - Mar. 2018 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Japan (parent basis) | 2,943 | 1,972 | 2,559 |
USA | 1,056 | 1,146 | 281 |
Europe | 63 | 168 | 628 |
Asia | 1,365 | 837 | 1,083 |
China | 1,135 | 733 | 375 |
Other | 123 | 38 | 57 |
Overall | 6,688 | 4,897 | 4,986 |
Expanded Production Capacity
-The Company will enhance its production capacity of exhaust gas recirculation (EGR) coolers in the Japanese and global markets. By FY2017, it is going to increase the global capacity by 80 percent compared to the FY2013 level. Since EGR coolers make an important contribution to improving the fuel efficiency of gasoline-engine vehicles, the demand for the product is expected to grow significantly worldwide, including emerging countries. Another reason for the significant growth in sales is the expanding use of common parts by automakers to save procurement costs. T.RAD is also aiming to boost sales of its compact, high-performance oil coolers by 150 percent by FY2017. (From an article in the Nikkan Jidosha Shimbun on Jun 4, 2013)New Facility Installations
-The planned investment in establishing new facilities and making other improvements is 8,110 million yen, as of Mar. 31, 2014.Facility (Location) |
Equipment to be installed | Planned investment amount (million JPY) |
Starting | Planned completion |
Hatano Works (Kanagawa, Japan) |
Equipment to produce radiators, etc. | 765 |
Apr. 2014 |
Mar. 2015 |
Nagoya Works (Aichi, Japan) |
Equipment to produce radiators, etc. | 720 |
Nov. 2013 |
Mar. 2015 |
Shiga Works (Shiga, Japan) |
Equipment to produce radiators, etc. | 775 |
Nov. 2013 |
Mar. 2015 |
R&D centers | R&D facilities | 746 | Mar. 2014 |
Mar. 2015 |
T.RAD North America Inc. (Kentucky, U.S.A) |
Equipment to produce radiators, etc. | 1,112 |
Dec. 2013 |
Dec. 2014 |
PT. T.RAD Indonesia (Bekasi, Indonesia) |
Equipment to produce radiators, etc. | 964 |
Jan. 2014 |
Dec. 2014 |
PT. T.RAD (Thailand) Co., Ltd. (Chachoengsao, Thailand) |
Equipment to produce radiators, etc. | 655 | Dec. 2013 |
Dec. 2014 |
T.RAD (Changshu) Co., Ltd. (Jiangsu, China) |
Equipment to produce radiators, etc. | 612 |
Jan. 2014 |
Dec. 2014 |
TRM LLC (Nizhny Novgorod, Russia) |
Equipment to produce radiators, etc. | 472 | Jan. 2014 |
Dec. 2014 |