Fuji Kiko Co., Ltd. Business report FY2007
Business Highlights
| Financial overview | (in millions of JPY) |
| FY2007 | FY2006 | Rate
of Change(%) |
Factors | |
| Overall | ||||
| Sales | 116,324 | 106,366 | 9.4 | -Sales increased due to the synergy effect gained from working with JTEKT Corporation in the steering components business, and with Tachi-S Co., Ltd. in the seat components business. |
| Operating income | (43) | (206) | - | -Operating income was down, affected by the increase in depreciation costs as a result of revised depreciation procedures in Japan. There was also a significant sales decrease in the steering business in North America, despite increased profit, as a result of the Company's quality improvement activities and streamlining efforts, which also included cost reduction activities. |
| Ordinary income | (1,959) | (691) | - | -Ordinary income decreased due to posting of exchange losses resulting from exchange fluctuations and increased interest payments. |
| Current net income | (3,411) | 274 | - | - |
| Steering parts business | ||||
| Sales | 52,395 | 48,889 | 7.2 | -Sales increases were contributed by the launch of new vehicle models and the synergy effect gained from working with JTEKT Corporation. |
| Operating income | 214 | (906) | - | -Operating income was down, impacted by significant sales decreases in the steering business in North America. |
| Seat parts business | ||||
| Sales | 42,087 | 31,295 | 34.5 | -Sales increases were contributed by the launch of new vehicle models and the synergy effect gained from working with Tachi-S Co., Ltd. This was despite decreases in production volumes of existing models at the Company's main customers, as well as other factors. |
| Operating income | 1,534 | 154 | 895.4 | - |
| Shifter parts business | ||||
| Sales | 7,923 | 9,898 | (20.0) | -Sales decreased, impacted by decreases in production volumes of existing models at the Company's main customers. This was despite the contribution of customers' new model launches. |
| Operating income | (131) | (17) | - | - |
| Engine parts business | ||||
| Sales | 6,297 | 5,979 | 5.3 | -Sales increased due to the launch of new models by the Company's main customers, despite decreases in production volumes of existing models at main customers. |
| Operating income | 328 | 165 | 98.9 | - |
| Parts for large vehicles business | ||||
| Sales | 1,720 | 1,592 | 8.1 | -Sales increased due to the launch of new models by the Company's main customers. |
| Operating income | 15 | 76 | 97.6 | - |
| Other automotive components business | ||||
| Sales | 1,278 | 1,454 | (12.1) | - |
| Operating income | 80 | 100 | (19.9) | - |
Japan
-The Company announced the planned merger of its consolidated subsidiary, Wakaizumi Fuji Kiko. The merger is due to become effective on March 1, 2008. Wakaizumi Fuji Kiko primarily engages in the machining of shifter parts manufactured at its Honjo Plant. Fuji Kiko, by taking over the operations of Wakaizumi Fuji Kiko, will improve the efficiency of its management system as a whole. This merger scheme will result in the dissolution of Wakaizumi Fuji Kiko. (From a press release on Jan. 29, 2008)
R&D
| R&D Expenditure | (in millions of JPY) |
| FY2007 | FY2006 | FY2005 | |
| Overall | 1,301 | 1,394 | 1,460 |
| Automotive Parts Division | 1,238 | 1,371 | 1,406 |
| -Steering parts business | 453 | 498 | 491 |
| -Seat parts business | 514 | 525 | 515 |
| -Shifter parts business | 117 | 168 | 191 |
| -Engine parts business | 101 | 116 | 132 |
| -Parts for large vehicles business | 29 | 32 | 35 |
| -Other Automotive Parts | 21 | 29 | 40 |
-The total number of R&D industrial property rights was 150. (All in the automotive parts business.)
R&D achievements
R&D achievements
-The Company has developed a new cable column with mechanical clutch system as a safety device for SBW (Steer By Wire), the new automobile steering system. In the event of a failure of the SBW system, this device enables the vehicle to be steered mechanically by a cable. Its unique clutch mechanism has made an instant switching-over possible. The cable system is space efficient and does not impair an SBW's feature, safety in a collision. The Company will focus its efforts on making technical proposals to automakers and parts suppliers to win business early. The new device, developed jointly with its largest shareholder, JTEKT Corp., maintains a safe, steerable condition for a vehicle in the event of an SBW's failure. Application of a thin cable in the link mechanism has greatly expanded the possibility of layout design, assured reliable performance and eliminated risks by shafts in a collision. (From a story in the Nikkan Jidosha Shimbun on Nov. 10, 2007)
-The Company announced the development of a new compact and light-weighted electric-powered tilt and telescopic steering column and the plan to start the mass production in the near future. The new smaller steering column forms a better combination with a column-type electric power steering unit and creates more knee space for a driver, providing improved safety at the time of an accident. In addition, the new product features higher rigidity against lateral force, reduced motor noise as well as improved perception of quality of the steering arrangement. A tilt and telescopic steering column is a mechanism to freely adjust steering wheel positions up and down (tilt), and back and forth (telescopic). Specifically, with a motorized adjustment mechanism, it is possible to add functions such as a capacity to memorize multiple drivers' steering wheel positions as well as a function to tilt away the steering wheel for ease when getting on and off the vehicle. The motorized version is now used mainly on luxury cars. But the company expects the application will expand to mid-sized sedans and SUVs in the future. (From a story in the Nikkan Jidosha Shimbun on Oct. 22, 2007)
Technical Transfer Agreements (Inward) (As of March 2008)
| Country | Licensor | Content | Period |
| German | Keiper GmbH&Co. | Production technology for seat reclining mechanism and head-rest adjusters | 1987.09.25 - 2008.04.11 (automatic renewal) |
| Patent license for wedge-type seat reclining mechanism | 1997.04.18 - 2009.03.31 (automatic renewal) |
||
| Germany | Dr.Ing.h.c.f.Porsche AG | Patent license for automatic transmission control devices | 1995.11.30 - 2009.03.09 |
| Germany | Winkelman Pannhoff GmbH | Production technology for one piece drive-plates | 1996.01.29 - 2009.01.28 (automatic renewal) |
| Liechtenstein | ThyssenKrupp Presta AG 窶ｻ | Patent cross license agreement for steering columns | 2007.07.30 - 2017.04.17 |
Technical Licensing Agreements (Outward) (As of March 2008)
| Country | Licensee | Content | Period |
| Taiwan | Taiwan Atsugi Co., Ltd. | Production technology for steering column | 1992.10.06 - 2007.10.05 (automatic renewal) |
| Taiwan | Joyu-Fuji Machinery Co., Ltd. | Production technology for A/T device, M/T linkage and pulley | 1996.10.08 - 2007.10.07 (automatic renewal) |
| Thailand | Thai Steel Cable Co., Ltd. | Production technology for window regulator | Ten years from 2000.01.12 |
| Malaysia | Auto Parts Manufacturers Co. SDN BHD |
Production technology for seat reclining devices and sheet lifters | 5 years from 2003.03.25 (automatic renewal) |
| China | Shye Fu Koyo (Xiamen) Mechanical Industry Co., Ltd. | Production technology for steering columns | From 2005.12.1 (automatic renewal) |
| USA | Douglas Autotech Corporation | Production technology for steering columns and automatic transmission devices | Five years from April 1, 2006 or the production life of the specific vehicle models |
| USA | Fuji Autotech U.S.A L.L.C. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Five years from April 1, 2006 or the production life of the specific vehicle models |
| Czech | Fuji koyo Czech s.r.o. | Production technology for steering columns and intermediate shafts | Five years from April 1, 2006 or the production life of the specific vehicle models |
| France | Fuji Autotech France S.A.S. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Five years from April 1, 2006 or the production life of the specific vehicle models |
| Indonesia | PT. Autotech Indonesia | Production technology for steering columns and intermediate shafts | Five years from April 1, 2006 or the production life of the specific vehicle models |
| China |
Fuji Autotech Guangzhou Co., Ltd. |
Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Nine years from Jan. 1, 2007 |
| Thailand | Summit Fujikiko Kurata Manufacturing Co., Ltd. | Production technology for steering columns and intermediate shafts | Five years from Jan. 1, 2007 or the production life of the specific vehicle models |
| India | Swarj Automotives Ltd. | Production technology for steering columns and intermediate shafts | Seven years from Feb. 28, 2008 or the production life of the specific vehicle models |
| Taiwan | Hsin Chong Machinery Works Co., Ltd. | Production technology for seat reclining devices | Five years from Mar. 18, 2008 or the production life of the specific vehicle models |
Investment Activities
| Capital investment | (in millions of JPY) |
| FY2007 | FY2006 | FY2005 | ||
| Overall | 9,581 | 7,165 | 6,940 | |
| Automotive Parts Division |
Steering parts | 6,086 | 3,303 | 4,100 |
| Seat parts | 1,286 | 3,234 | 2,164 | |
| Shifter parts | 1,590 | 245 | 298 | |
| Engine parts | - | - | 8 | |
| Parts for large vehicles | - | - | - | |
| Other Automotive Parts | 618 | 382 | - | |
-In the auto parts business dealing in the steering business, seat business and shifter business, the Company made capital investments mainly for improving its production structure to manufacture new products in response to new orders and model changes. It also invested in constructing Honjo Plant and relocation of machinery and equipment.
( 繝ｻMainly in the auto parts business, the Company focused on investing in preparation of production facilities for addressing new orders and remodeling of vehicle models.)
New facilities (automotive parts production facilities)
| Company Name | Location | Business | Planned investment (million JPY) |
Start | Completion | Production capacity increase on completion |
| Fuji Kiko Co., Ltd. Washizu Plant | Shizuoka Pref., Japan | Seat parts Engine parts |
1,812 | 2007.7 | 2009.3 | No change made |
| Fuji Kiko Co., Ltd. Nii Plant | Shizuoka Pref., Japan | Steering wheel parts | 1,286 | 2007.7 | 2009.3 | Approx. 10% capacity increase |
| Fuji Kiko Co., Ltd. Honjo Plant | Saitama Pref., Japan | Shifter parts Parts for large vehicles |
204 | 2007.11 | 2009.3 | No change made |
| Summit Fujikiko Kurata Manufacturing Co., Ltd. | Rayong, Thailand | Steering parts | 684 | 2008.1 | 2008.12 | Approx. 30% capacity increase |
| Fuji Koyo Czech s. r. o. | Plzen, Czech | Steering parts | 662 | 2008.1 | 2008.12 | Approx. 20% capacity increase |
Facility upgrade (automotive parts production facilities)
| Company Name | Location | Business | Planned investment (million JPY) |
Start | Completion | Production capacity increase on completion |
| Fuji Kiko Co., Ltd. Washizu Plant | Shizuoka Pref., Japan | Seat parts Engine parts |
56 | 2008.4 | 2009.3 | No change made |
| Fuji Kiko Co., Ltd. Nii Plant | Shizuoka Pref., Japan | Steering wheel parts | 141 | 2008.4 | 2009.3 | No change made |