YACHIYO INDUSTRY Business Report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change (%)||Factors|
|Sales||309,283||319,765||(3.3)||-Sales declined due to a decrease in program business in Japan and to negative currency translation, although orders for automotive parts in the rest of Asia increased.|
|Operating profit||6,050||8,799||(31.2)||-In Japan, sales of automotive parts decreased, which resulted in lower income. Lower figures were also posted due to negative currency translation. Depreciation costs and R&D expenditures increased. In the rest of Asia, sales increased, which resulted in greater income. Cost reduction activities were effective and the Company posted favorable figures due to positive currency translation stemming from sales in dollars in North America. Overall, though, sales decreased.|
|Automotive components field|
-Sales decreased due to fewer orders for motor cycle components and underbody parts. Plus the Company made a change to its product mix.
-Sales decreased due to fewer orders at the Company's subsidiaries in Canada and the U.S., namely Yachiyo of Ontario Mfg., Inc. and AY Manufacturing Ltd. Also, the Company reported lower figures due to negative currency translation.
<Asia other than Japan>
-Even though orders increased at its subsidiaries in the rest of Asia, namely Yachiyo Zhongshan Manufacturing Co., Ltd. (China); Yachiyo Wuhan Mfg. Co. Ltd. (China); Siam Goshi Mfg. Co., Ltd. (Thailand); and Goshi-Thanglong Auto-Parts Co., Ltd. (Vietnam), the Company suffered negative currency translation. Overall, though, sales in the rest of Asia showed a year-on-year increase.
|Sales||130,167||122,943||5.9||-Sales grew, thanks to increased orders for the new Life, which was released in November 2008.|
Recent Developments in Japan
-The Company, which manufactures Honda's mini vehicles, will establish a more independent business structure to support the automaker's new model launches. The Company's production division will function autonomously just like the Honda Saitama Factory and Suzuka Factory, which are directly managed by Honda. As a result, Honda will delegate responsibilities to the Company for preparing mass production of new models and launching the first complete car by fiscal year 2010. Honda believes that increasing its business operations will sharpen the Group's competitive edge in the mini-vehicle market. (From an article in the Nikkan Jidosha Shimbun on Apr. 3, 2008)
|Outlook for FY2009||(in millions of JPY)|
|Sales Volume Forecasts (car business)||(in 1,000 units)|
|Total production volume||192||165||（27）|
|Sales Volume Forecasts (parts business - tank)||(in 1,000 units)|
|Total production volume||2,818||2,435||(383)|
|Sales Volume Forecast (parts business - sunroof)||(in 1,000 units)|
|Total production volume||1,369||1,041||(328)|
|Investment Plan||(in millions of JPY)|
|Total investment (consolidated)||23,400||11,100|
|Domestic car business||7,300||5,800|
|Domestic parts business||8,700||2,400|
|Major Investment Plans for FY2009||(in millions of JPY)|
|-For a new-car production plant||8|
|New car production plant||(8)|
|-to build an engine plant facility||8|
|New company (YG Tech)||(1)|
|-Construction of plant and transferring operations||1|
|-New facility in India||2|
|-Parts business (addition of Tochigi Laboratory)||6|
|-Subsidiaries outside Japan (expansion of sunroof production capacity in China, etc.)||12|
|New product models (including dies and tools)||(58)|
|-Japan (cars and parts)||49|
|-Subsidiaries outside Japan||9|
|Rationalization and renovation activities||(15)|
|-Japan (cars and parts)||8|
|-Subsidiaries outside Japan||7|
Tenth Medium-term Business Plan (Apr. 1, 2008 through Mar. 31, 2011)
|Sales Plan||(in millions of JPY)|
|Sales Volume of Major Products (resin fuel tanks)||(in 1,000 units)|
|Total production volume||2,578||2,177||2,400|
|Sales Volume of Major Products (sunroofs)||(in 1,000 units)|
|Total production volume||1,369||1,041||1,150|
|R&D Expenditure||(in millions of JPY)|
-R&D activities are conducted at both the Company, Goshi Giken Co., Ltd.; and Yachiyo of America Inc.
For automotive components, achievements and continuing R&D activities involved the following:
(1) Launching mass-production of plastic fuel tanks for installation in new vehicles
(2) Launching mass-production of sunroofs for installation in new vehicles
(3) Development of metal honeycomb, high-density cell carriers for motor cycles, which comply with emission standards in Japan and abroad.
(4) Research and development of new-design resin fuel tanks
(5) Research and development of environmental technology for producing sunroofs.
(6) Research and development on environmental technology for sunroofs.
(7) Research and development on environmentally friendly plastic fuel tanks for motor cycles
(8) Research and development of environmental technology for producing resin fuel tanks for motor cycles
(9) Research and development of press forming technology capable of handling semi-melted aluminum materials
|Investment Expenditure||(in millions of JPY)|
-Investment was made in order to respond to new orders, expand and strengthen production capacity, and maintain and streamline processes.
-Investment was made in order to acquire land for a new plant, respond to new orders, and expand and strengthen production capacity.
-At Yokkaichi Plant, the Company added an engine rebuild plant and car assembly plant, targeting a launch of operations in the latter half of 2010. In response to the drastic and sudden change in the recent economic environment, however, the Company postponed the launch of the car assembly plant by over one year. As for the engine assembly plant, it already launched operations in May 2009, as scheduled.
New Facilities for Automotive Parts Business (As of Mar. 2009)
|Name||Purpose|| Planned total investment
(in millions of JPY)
(Saitama Prefecture, Japan)
(Mie Prefecture, Japan)
(Mie Prefecture, Japan)
(Mie Prefecture, Japan)
|Tochigi Research Center
(Tochigi Prefecture, Japan)
|Goshi Giken Co., Ltd.
(Kumamoto Prefecture, Japan)
| Yachiyo of Ontario Mfg., Inc.
| Yachiyo Manufacturing of Alabama LLC
|AY Manufacturing Ltd.
|Yachiyo Zhongshan Manufacturing Co., Ltd.
|Yachiyo Wuhan Mfg. Co., Ltd. (Wuhan, China)||Production facilities||231||2008.04||2009.12|