OWARI PRECISE PRODUCTS CO., LTD. Business Report FY2007
Business Highlights
| Financial overview | (in millions of JPY) |
| FY2007 | FY2006 | Rate of change (%) | Factors | |
| Sales | 19,812 | 18,174 | 9.0 | -Sales increased due to increased orders received from its customers (automakers), as they increased their production volumes. |
| Operating income | 1,487 | 1,129 | 31.7 | -In spite of growing procurement costs due to price hikes in raw materials, the Company's operating income increased as a result of initiating loss reductions and improving its distribution system. |
| Ordinary income | 1,476 | 1,192 | 23.8 | - |
| Current net income | 795 | 677 | 17.3 | -Current net income increased as a result of posting an extraordinary profit from the gain of the sale of land, despite posting an extraordinary loss due to product warranty costs. |
R&D
R&D Expenditure
-R&D expenditures for FY2007 were 3,346 thousand yen.
(1) Expenditures on precision forged products: 1,378 thousand yen.
-The Company reassessed the materials used in and the processing methods conducted for manufacturing synchronizer rings in order to improve their durability and develop high-performance, lower cost products.
R&D activities were conducted on surface coating technology based on plasma spray coating techniques.
(2) Expenditures on screws: 1,968 thousand yen
-At its screw business, the Company is working to develop new step screws. These screws are able to provide a higher level of fastening strength when screwed into the car body, on which automakers are using thinner but harder materials to improve the fuel economy of cars.
Technology Agreements Licensed-in (As of March, 2008)
-R&D expenditures for FY2007 were 3,346 thousand yen.
(1) Expenditures on precision forged products: 1,378 thousand yen.
-The Company reassessed the materials used in and the processing methods conducted for manufacturing synchronizer rings in order to improve their durability and develop high-performance, lower cost products.
R&D activities were conducted on surface coating technology based on plasma spray coating techniques.
(2) Expenditures on screws: 1,968 thousand yen
-At its screw business, the Company is working to develop new step screws. These screws are able to provide a higher level of fastening strength when screwed into the car body, on which automakers are using thinner but harder materials to improve the fuel economy of cars.
Technology Agreements Licensed-in (As of March, 2008)
| Company | Country | Products under agreement | Details of agreement | |
| Conti Fasteners AG, Inc. | Switzerland | Trilobular screws | 1. Establishing the usage rights to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information |
From Sep. 1, 2004 to Aug. 31, 2009 |
| Acument Global Technologies,Inc. | U.S.A. | Torx | 1. Establishing the usage rights to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information |
From July 26, 2005 to July 26, 2008 |
| Torx Plus | From Jan. 5, 1994 to Dec. 31, 2011 |
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| Strux | From Sep. 26, 2004 to Sep. 26, 2007 |
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| Ejot GmbH&Co.KG Industrial Fastner Division | Germany | Screws | 1. Establishing the usage rights to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information |
From June 21, 2004 to July 27, 2018 |
| Richard Bergner Verbindungstechnik Gmbh&Co.KG | Germany | Clinch bolts | 1. Establishing the usage rights to trademark rights. 2.Consenting to both manufacturing and sales rights 3.Providing technical information |
From June 21, 2004 to July 27, 2018 |
| Clinch nuts |
Investment Activities
Capital investment
-Capital investments in FY 2007 were 783,524 thousand yen, with 513,662 thousand yen spent on machinery.
(1) Investments in precision forged products: 178,025 thousand yen.
-The Company invested in improving its production lines so as to enhance its production facilities and boost production efficiency.
(2) Investments in screws: 148,534 thousand yen
-The Company made capital investments to streamline production.
New facilities
-Capital investments in FY 2007 were 783,524 thousand yen, with 513,662 thousand yen spent on machinery.
(1) Investments in precision forged products: 178,025 thousand yen.
-The Company invested in improving its production lines so as to enhance its production facilities and boost production efficiency.
(2) Investments in screws: 148,534 thousand yen
-The Company made capital investments to streamline production.
New facilities
| Company/Office Name | Location | Expected Investment (millions of yen) |
Start | Planned completion |
| Asahi Plant | Owariasahi City, Aichi Pref. |
130,860 | Apr. 2008 | Sep. 2008 |