HI-LEX Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change
Sales 128,670 94,861 35.6 1)
Operating profit 12,078 2,759 337.8 -
Ordinary profit 12,407 2,372 423.1 -
Net profit 7,522 1,171 542.4 -

Control cables
-Sales of control cables decreased in both North America and China.

Window regulators
-Sales of window regulators to Korean and North American automakers increased.

-Sales increased 29.0 percent year-on-year to 61,645 million yen, thanks to a significant rise in vehicle production in Japan.

<North America>
-Sales increased 38.4 percent year-on-year to 41,280 million yen, thanks to significant growth in vehicle production in the U.S.

-Sales rose 48.4 percent year-on-year to 41,902 million yen, supported by large growth in China, India and Indonesia.

-Sales in “other regions” climbed 14.2 percent year-on-year to 3,953 million yen, as vehicle production started to recover in the U.K. and other European countries. The division thereby returned to profitability.

>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 696 701 1,035

R&D Activities

-The Company developed a new pulley cable, which is capable of accurately transmitting rotational motion and angle from the input side to the output side. This pulley cable is used in operating systems of car air conditioning equipment.

-For the purpose of developing safer and more user friendly door opening and closing systems for automotive slide doors and back doors, the company is working on advanced driving systems and control mechanisms to support these products.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 3,066 3,962 7,990

-The spending was centered on introducing and renewing production machinery and tools at each plant.
-Major investment projects during the business year ended in October 2010 included expanding facilities at both Daedong Hi-Lex Inc. in Korea and Changchun Hi-Lex Auto Cable System Co. Ltd. in China.

Investments by Segment

(in millions of JPY)
  FY2010 FY2009 FY2008
Control Cable Division
Japan 287 285 779
North America 173 157 323
Asia 458 964 757
Europe N.A. N.A. 197
Window Regulator Division
North America 190 273 1,250
Asia * 587 711 864
*Investment was focused on China and Korea

Capital Investment Plans

(As of Oct. 31, 2010)

Company name Business segment Type of project Planned
investment (in million yen)
Project period Increased capacity upon completion
From To
PT. Hi-Lex Indonesia
Cikarang Plant
(Jakarta, Indonesia)
Control cables, window regulators, etc. New plant and new facility 540 2010.08 2014.12 30% increase in production capacity