HI-LEX Corporation Business Report FY2011

Business Highlights

Financial Overview

(in millions of JPY)
  FY2011 FY2010 Rate of Change
(%)
Factors
Overall
Sales 125,098 128,670 (2.8%) 1)
Operating profit 9,182 12,078 (24.0%) -
Ordinary profit 9,907 12,407 (20.1%) -
Net profit 5,798 7,522 (22.9%) -

Factors
1)
Control cables

- Sales decreased year-on-year, as sales at the headquarters declined, while growth at the U.S. subsidiary was partially offset by the losses from the currency translation.



Window regulators
- Sales fell from the previous year's result, as sales in both Japan and China decreased, while growth at the U.S. subsidiary was partially offset by the losses from the currency translation.

<Japan>
- Sales in Japan totaled 55,329 million yen, down 10.2 percent from last year's result due to a significant drop in vehicle production volumes in Japan. Operating profit fell 19.7 percent year-on-year to 5 billion yen because of decreased sales.


<North America>
- Sales in North America reached 41,576 million yen, up 0.7 percent year-on-year, thanks to the increase in vehicle production volumes in the U.S. Operating profit, however, decreased 21.8 percent year-on-year to 2,072 million yen because of special costs incurred in connection with the delay in expanding production in Mexico.

<China>

- Sales in China fell 1.5 percent year-on-year to 21,441 million yen because of reduced production volumes by Japanese automakers in the aftermath of the great earthquake in March 2011. Operating profit dropped 24.0 percent year-on-year to 1,946 million yen, as competition in the market further intensified.


<Asia>
- Sales in Asia increased 8.0 percent from the previous year's result to 22,461 million yen, thanks to buoyant demand in the market. Operating profit, however, decreased 21.7 percent year-on-year to 2,053 million yen. The drop was due to reduced deliveries to the Japanese market as well as special costs incurred in connection with the delay in expanding production in India.

<Others>
- Sales in Europe totaled 3,689 million yen, down 6.7 percent from the previous year's result, mainly because of reduced production volumes by Japanese automakers in the aftermath of the great earthquake in March 2011. Operating profit was 14 million yen, dropping 75.6 percent from last year. 

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

R&D

R&D Expenditure

(in millions of JPY)
  FY2011 FY2010 FY2009
Overall 971 696 701

R&D Activities

- The Company is working on developing smaller and more durable control mechanisms with higher output levels in order to design and manufacture safer and more user-friendly automotive door opening and closing systems.

 

- The Company is working on development and commercialization of an electronic parking system to help improve driving safety.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2011 FY2010 FY2009
Overall 3,826 3,066 3,962

- During FY2011, the Company invested 682 million yen in Japan, 1,119 million yen in North America, 1,487 million yen in Asia, 463 million yen in China, and 74 million yen in Europe mainly to increase capacity and streamline operations.


- Major investment projects during FY2011 included installing new production equipment at PT. Hi-Lex Indonesia, acquiring additional production equipment and a piece of land for establishing a new factory at Daedong Hi-Lex Inc. in Korea, and introducing new production equipment at Daedong Hi-Lex of America Inc.


Capital Investment Plans

(As of Oct. 31, 2011)
Company name Business segment Type of project Planned
total
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
Daedong Hi-Lex Inc.
Gwangju Plant
(Gwangju, Korea)
Window regulators, etc. New plant and new facility 376 2011.7 2012.2 100% increase in production capacity