Nissin Kogyo Co., Ltd. Business Report FY2009
|(in millions of JPY)|
|FY2009||FY2008||Rate of Change (%)||Factors|
|Current net income||2,597||4,222||(38.5)||-|
Contracts-The Company was awarded a contract to supply electronic parking brakes (EPBs) for the Honda Elysion Prestige powered by a 3.5-liter V6 engine. Mass production already started at both its Ueda Plant (Nagano Prefecture), which manufactures motors and gears, and Tobu Plant (Nagano Prefecture), which manufactures caliper assemblies. (From a press release on April 2, 2009)
-The Company has been awarded a contract by Honda to supply its brake components and aluminum parts for the new Stepwagon and that it has already entered mass production. The components supplied will equip 6,000 vehicles per month. Vehicle Stability Assist (VSA) or NK21V units, ABS units and vacuum boosters & master cylinders are produced at the Ueda Plant in Nagano Prefecture. For this project, the Company also manufactures rear disc brakes and drum brakes at the Tobu Plant and aluminum brackets at the Muroga Plant - both located in Nagano Prefecture. The master cylinder has been redesigned to be shorter by 34% with number of parts being reduced to about two-third, when compared with its previous version. (From a press release on October 13, 2009)
Business Restructuring-The Company will be shifting production of aluminum parts for four wheeled vehicles at the Muroga Plant, Ueda City, Nagano Prefecture, to the Naoetsu Plant in Joetsu City, Niigata Prefecture. The process started in October 2009 and is expected to be completed by April 2010. Motorcycle parts manufacturing activities - core operations at the plant in Naoetsu - have dwindled, which consequently forced the Company to realign its production facilities in Japan. The employees who engage in the production of aluminum parts for four wheeled vehicles at the Muroga Plant will be transferred to the Ueda Plant, Ueda City and the Tobu Plant, Toumi City - both in Nagano Prefecture - among other factories in Japan. (From a press release on October 29, 2009)
Summary by Region<Japan>
-Both sales and operating income declined because exports of automobiles decreased. This was the result of OEMs shifting their production operations outside Japan. In addition, motorcycle manufacturers reduced their production volumes in line with slowdowns in the motorcycle market.
-Sales declined because of production cutbacks by OEMS and negative currency translation.
-Operating income, which at one point had declined due to lower sales and negative currency translation, recovered in the third quarter due to the Company's cutbacks in costs and spending.
-Strong sales in the Chinese market, greater volume of products being produced in China, and the launch of a new production site in India were positive factors contributing to the Company's growth. But the Company's sales in the entire Asian region declined due to motorcycle and automobile manufacturers reducing their production volumes and to negative currency translation.
-Ordinary income significantly dropped due to lower sales and negative currency translation, although the Company's ordinary income in China increased and its production sites made successful cost reductions. In and after the second quarter, income improved in line with market recovery.
-The launch of a new automobile parts plant in Brazil was a positive factor contributing to the Company's income. But overall sales decreased due to motorcycle and automobile manufacturers reducing their production volumes and to negative currency translation.
-An increase in sales of automotive parts in Brazil helped improve the ordinary income of the Company. But the Company's income on the whole significantly decreased due lower sales of motorcycle parts and to negative currency translation. But in and after the second quarter, income improved in line with market recovery.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
|(in millions of JPY)|
R&D StructureR&D facilities: Tochigi R&D Center (Nasukarasuyama City, Tochigi Pref.), Nagano R&D Center (Tomi City, Nagano Pref.)
Major R&D Achievements in Automobile PartsDevelopment of an automatic control mechatronics system
-The Company's newly developed Vehicle Stability Assist (VSA) system (or NK21V), designed for higher driving comfort and safety, is being equipped on two new vehicle models.
-One of the two vehicle models is also being equipped with the Company's Hill Start Assist (HAS) system, which is designed to reduce the load on the driver at the start of hill climbs.
Basic brake development
-In order to meet demand to improve fuel economy of the car, the Company expanded application of drag torque reduction technology for brake systems as well as application of lighter systems.
-The Company expanded the applications of its lightweight products such as its newly developed short and compact master cylinders.
-The Company made successful cost reductions by reviewing specifications of each components of the products.
-As a result, these products are being equipped on six additional vehicle models.
Development of weight reduction technology
-The Company supplied 21 types of aluminum engine mount brackets, which reduce vehicle weight, to nine vehicle models.
|(in millions of JPY)|
-No sales of removals of equipment, which has significant impact on the Company's production capacity, took place.
Plans to Add New Facilities for Automotive Parts
(As of Mar. 31, 2010)
|Name of company
|Type of facility||Planned total investment (million JPY)||Starting month||Planned completion|
(Nagano Pref., Japan)
|Production facility||666||June 2009||April 2011|
(Nagano Pref., Japan)
|Production facility||199||Feb. 2010||March 2011|
(Niigata Pref., Japan)
|Production facility||469||May 2009||March 2011|
|Nissin Brake Ohio Inc.(Ohio, USA)||Production facility||2,733||April 2009||March 2011|
|Nissin Brake Georgia, Inc.
|Production facility||189||Jan. 2010||March 2011|
|Nissin Brake (Thailand) Co., Ltd. (Nakornratchasrima, Thailand)||Production facility||1,286||Jan. 2009||Dec. 2010|
|P.T. Chemco Harapan Nusantara
(Jawa Barat Indonesia)
|Production facility||1,573||Oct. 2009||Dec. 2010|
|Zhongshan Nissin Industry Co., Ltd.(Guangdong, China)||Production facility||1,079||Jan. 2009||Dec. 2010|
|Nissin Brake Vietnam Co., Ltd.(Vinh Phuc, Vietnam)||Production facility||377||July 2009||Dec. 2010|
|Nissin Brake India Private Ltd. (Rajasthan, India)||Production facility||147||Jan. 2009||Dec. 2010|
|Nissin Brake Do Brasil Ltda.
|Production facility||620||July 2009||Dec. 2010|