NHK SPRING CO., LTD. Business report FY2007
|In million JPY||FY2007||FY2006||Rate of Change (%)||Factors|
|Sales||484,878||428,059||13.3||Sales increased due to an increase in sales volume as a result of sales promotions and marketing activities.|
|Operating income||30,356||25,115||20.9||Income increased as a result of such activities as reducing cost and improving productivity and operation efficiency. Increased sales volume also contributed to the income increase.|
|Suspension springs Division|
|Sales||116,917||104,482||11.9||Sales and operating income increased as a result of increased sales due to increased car production volume as well as recovery of the Company's business in North America.|
|Sales||171,603||144,597||18.7||Sales increased as a result of greater vehicle production volume and the division's sales promotion activities.|
|Sales||154,723||137,609||12.4||Sales and operating income increased due to increased car production volume as well as an increase in information equipment related demand.|
The Company announced that it will acquire additional 3,100 shares in Faurecia-NHK Kyushu Co., Ltd. (FNQ), which is a car seat production company it jointly established with Faurecia S.A. of France. The acquisition will increase the Company's control over the joint venture company in Kanda-machi, Fukuoka Prefecture, enhancing its initiatives to improve the plant's production efficiency. After the closing of the share transaction scheduled on December 31, Faurecia-NHK Kyushu will be owned 81 percent by the Company and the remaining 19 percent by Faurecia. The business results of the Kyushu facility will be thereafter added to the consolidated financial statements of the Group, which aims to turn the subsidiary profitable by fiscal year 2008. (From an article in the Nikkan Jidosha Shimbun on Dec. 25, 2007)
The Company announced that it has decided at the Board of Directors meeting held on July 2, 2007 to transfer all the shares of Thai Automotive Seating & Interior Co., Ltd. (TASI) now held by the Company to Toyota Boshoku Asia Co., Ltd., Toyota Boshoku Corporation's subsidiary in Thailand. The Company made a decision to dispose its entire stake in TASI, accepting the request presented by Toyota Boshoku, who expressed its desire to further strengthen its operations in Thailand by providing its customers with comprehensive services covering both the development and sales of automotive seats and door trims. The Company is scheduled to transfer a total of 125,000 TASI shares, which accounts for 50% of the all the issued and outstanding shares of TASI, as 37,500 shares (15%) owned by itself and another 87,501 shares (35%) held by its subsidiary NHK Spring (Thailand) Co., Ltd. being combined.(From a press release on July 2, 2007)
Mid-term business plan "Plan 2010"
In Nov. 2007, the Company announced its mid-term business plan from FY 2008 through FY 2010. It will aim to establish itself as "the global No. 1 in its mainstay business of suspension spring, both in name and substance," and will build up systems to achieve this goal while comparing its future visions and the current situations. The numerical targets for the last fiscal year include 620 billion yen sales, up 30.2% from the estimated result of FY 2007, and 7.6% operating profit ratio, up 1.4%. (From an article in the Nikkan Jidosha Shimbun on Nov. 20, 2007)
- R&D expenses for FY2007 were 9,989 million yen, representing approximately 2.1% of total sales for the Group.
Suspension Spring Division
- R&D expenses were1,197 million yen.
- The Company is engaged in developing light-weight, high-durability leaf and coil springs, and light-weight, high-durability stabilizers and stabilizer springs that protect the environment, save energy, and enhance riding comfort
- R&D expenses were 3,229 million yen.
- Conducting R&D activities on active headrests that reduce whiplash injuries resulting from rear-end collisions.
-The Company developed new models to be used in next generation vehicle models. This development focused on reducing values of whiplash injury index as well as reducing products weight. It also worked to develop hood up devices.
Capital investment for FY2007 was 34,779 million yen.
Suspension Spring Division
-The Company made 5,475 million JPY in capital investments within the Group to win supply contracts for new products and to improve productivity for existing products.
The focus of investments was manufacturing facilities for suspension springs at Yokohama Plant, NHK Spring (Thailand) Co., Ltd., NHK of America Suspension Components and New Mather Metals, Inc.
-The Company made 6,298 million JPY in capital investments within the Group in order to win business for new products and to improve the productivity of existing products.
Its focus of investment was manufacturing facilities for seats at the Toyota plant and NHK Spring (Thailand) Co., Ltd.
Installation of New Equipment (suspension springs and seating division)
|Plant||Segment||Major Equipment to be installed||Estimated amount of investment (million yen)||Project Period|
| NHK Spring
|Shiga plant||Suspension springs||Manufacturing facilities for springs||1,090||May 2008||Mar. 2009|
|Shiga plant||Suspension springs||Manufacturing facilities for springs||340||Apr. 2008||Feb. 2009|
|Yokohama plant||Seats||Manufacturing facilities for automotive seats||559||Oct. 2007||Oct. 2008|
|Yokohama plant||Seats||Manufacturing facilities for automotive seats||520||Apr. 2008||Dec. 2008|
|Yokohama plant||Seats||Manufacturing facilities for automotive seats||400||Oct. 2008||Sep. 2009|
|Toyota plant||Seats||Plant building||466||Apr. 2008||Mar. 2010|
|Toyota plant||Seats||Manufacturing facilities for automotive seats||388||Oct. 2008||May 2009|
|Toyota plant||Seats||Manufacturing facilities for automotive seats||363||Apr. 2008||Oct. 2008|
|Gunma plant||Seats||Manufacturing facilities for automotive seats||508||May 2008||Aug. 2009|
|NHK Seating of America Inc.||Indiana, USA||Seats||Manufacturing facilities for automotive seats||815||July 2007||June 2008|
|NHK Spring (Thailand)
|Seats||Manufacturing facilities for automotive seats||290||Sep. 2008||Dec. 2008|
|Seats||Manufacturing facilities for automotive seats||566||Mar. 2008||Dec. 2008|
|Precision parts||Plant building||731||Jan. 2008||Dec. 2008|
|Tokuhatsu Co., Ltd.||Itami Plant||Precision parts||Plant building||775||Feb.2008||Aug. 2009|