Fuji Kiko Co., Ltd. Business report FY2008
Business Highlights
| Financial Overview | (in millions of JPY) |
| FY2008 | FY2007 | Rate of Change(%) |
Factors | |
| Overall | ||||
| Sales | 92,943 | 116,324 | (20.1) | -While there were synergy effects with JTEKT Corporation in the steering component business; and those with Tachi-S Co., Ltd. in the seat component business, the Company's sales and profit decreased due to sluggish sales and lower production volume worldwide at customers. This became prominent especially from the third quarter and onward. <North America> -Income decreased due to declines in sales at steering system and seat component companies. <Europe> -Income decreased due to declines in sales at steering component companies. <Other regions (Asian countries such as China, Indonesia, and Thailand）> -Income increased due to increased sales at steering and seat component companies. Sales at shifter component companies also contributed to income increase.. |
| Operating income | (2,213) | (43) | - | |
| Ordinary income | (3,600) | (1,959) | - | |
| Current net income | (3,720) | (3,411) | - | |
| Steering parts business | ||||
| Sales | 42,386 | 52,395 | (19.1) | -Decrease in production volume at the Company's customers. |
| Operating income | (2,343) | 214 | - | |
| Seat parts business | ||||
| Sales | 33,678 | 42,087 | (20.0) | -Decrease in production volume at the Company's customers. |
| Operating income | (97) | 1,534 | - | |
| Shifter parts business | ||||
| Sales | 7,144 | 7,923 | (9.8) | -Decrease in production volume at the Company's customers. |
| Operating income | 99 | (131) | - | |
| Engine parts business | ||||
| Sales | 5,301 | 6,297 | (15.8) | -Decrease in production volume at the Company's customers. |
| Operating income | 102 | 328 | (68.9) | |
| Parts for large vehicles business | ||||
| Sales | 1,338 | 1,720 | (22.2) | -Decrease in production volume at the Company's customers. |
| Operating income | 54 | 15 | (64.0) | |
| Other automotive components business | ||||
| Sales | 1,063 | 1,278 | (16.8) | - |
| Operating income | (37) | 80 | - | - |
Emergency Reorganization Measures
-The Company announced emergency financial measures that include asking executives to voluntarily return part of their salaries; and reducing the workforce. Its headquarters at Kosai City, Shizuoka Pref. will be relocated to its Arai Factory and the land and buildings will be sold. It will also consolidate its production operations at home and abroad. (From an article in the Nikkan Jidosha Shimbun on Feb. 5, 2009)
R&D
| R&D Expenditure | (in millions of JPY) |
| FY2008 | FY2007 | FY2006 | |
| Overall | 1,528 | 1,301 | 1,394 |
| Automotive Parts Division | 1,491 | 1,238 | 1,371 |
| -Steering parts business | 581 | 453 | 498 |
| -Seat parts business | 573 | 514 | 525 |
| -Shifter parts business | 139 | 117 | 168 |
| -Engine parts business | 136 | 101 | 116 |
| -Parts for large vehicles business | 34 | 29 | 32 |
| -Other Automotive Parts | 26 | 21 | 29 |
-A total of 345 staff members conducted R&D; some of these staff members are engaged in trial manufacturing and experiments. Of these, 330 staff members worked in the automotive parts business.
-The total number of R&D industrial property rights was 148. (All in the automotive parts business.)
R&D activities
Steering parts business
-The Company is working to reduce product costs and weight while trying to improve safety and product appeal. It will do this by improving the level of plastic forming technologies it uses. It plans to achieve this by reaching the required level of functions and performance demanded for steering columns by utilizing the most optimal mechanisms and designs.
-The Company is addressing the issues and needs surrounding globalization; enhancing its framework for conducting development activities in three regions (Japan, Europe, and the U.S.A.); and improving its competitive edge and product lineup by taking customer demand in the U.S.A. and Europe into consideration.
-The Company is jointly developing future technologies and products with automakers and system manufacturers to improve running performance.
-The Company conducted joint development activities with JTEKT Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, ways to reduce development time.
Seat parts business
-The Company worked on developing functional core components and systems used in seats, such as seat recliners, height adjusters and slides. In response to the growing needs for environmental measures, safety, and comfort, the Company is engaged in reducing the size, weight and cost of products, as well as improving their strength and functions in addition. It is also developing products that can satisfy the seating layouts used in RV vehicles, hoping to improve their usability so as to satisfy increasingly diverse customers' demands.
-The Company conducted joint development activities with Tach-S Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, improvement of development speed.
Shifter parts business
-The Company is developing mass-marketed shifters in order to reduce both their cost and weight. It plans to achieve this by optimizing the design of automatic transmission shifters, which will lead to improving the Company's competitive edge.
-The Company is also improving product performance in terms of optimizing both feel and maneuverability, which also encompasses operational handling and noise.
-The Company is developing products that can respond to future size reductions.
Engine parts business
-The Company continues to work on engine drive components such as pulleys and drive plates, which are products it is developing in various shapes in response to the needs for processing sheet-metal in the market. The Company plans to achieve this by utilizing several of its proprietary technologies such as plastic forming and product analysis, which include the processes for adding thickness and forming slots on boards.
Parts for the large-vehicles business
-In focusing on components used in both manual and automatic transmissions, the Company is developing products based on customers' specifications.
Technical Transfer Agreements (Inward) (As of Mar. 2009)
| Country | Licensor | Content | Period |
| German | Keiper GmbH&Co. | Production technology for seat reclining mechanism and head-rest adjusters | 1987.09.25 - 2009.04.11 (automatic renewal) |
| Patent license for wedge-type seat reclining mechanism | 1997.04.18 - 2010.03.31 (automatic renewal) |
||
| Germany | Winkelman Pannhoff GmbH | Production technology for one piece drive-plates | 1996.01.29 - 2010.01.28 (automatic renewal) |
| Liechtenstein | ThyssenKrupp Presta AG | Patent cross license agreement for steering columns | 2007.07.30 - 2017.04.17 |
Technical Licensing Agreements (Outward) (As of Mar. 2009)
| Country | Licensee | Content | Period |
| Taiwan | Taiwan Atsugi Co., Ltd. | Production technology for steering column | 1992.10.06 - 2009.10.05 (automatic renewal) |
| Taiwan | Joyu-Fuji Machinery Co., Ltd. | Production technology for A/T device, M/T linkage and pulley | 1996.10.08 - 2009.10.07 (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 | Sona Fuji Kiko Automotive 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) |
| FY2008 | FY2007 | FY2006 | |
| Overall | 3,587 | 9,581 | 7,165 |
| Automotive Parts Division | |||
| -Steering parts | 2,343 | 6,086 | 3,303 |
| -Seat parts | 617 | 1,286 | 3,234 |
| -Shifter parts | - | 1,590 | 245 |
| -Other Automotive Parts | 627 | 618 | 382 |
-The Company made capital investments in the auto parts business specifically in the areas of steering systems and seats. The investments were mainly for improving its production structure so as to manufacture new products in response to new orders and model changes.
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 |
1,123 | 2008.7 | 2010.3 | No change |
| Fuji Kiko Co., Ltd. Nii Plant | Shizuoka Pref., Japan | Steering wheel parts | 380 | 2008.7 | 2010.3 | No change |
| Fuji Kiko Co., Ltd. Honjo Plant | Saitama Pref., Japan | Shifter parts Parts for large vehicles |
108 | 2008.7 | 2010.3 | No change |
| Fuji Autotech France S.A.S | Beaulieu, France | Steering parts | 288 | 2009.1 | 2009.12 | No change |
| Douglas Autotech Corporation | Michigan, USA | Steering parts | 244 | 2009.1 | 2009.12 | No change |
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. Nii Plant | Shizuoka Pref., Japan | Steering wheel parts | 37 | 2009.3 | 2010.3 | No change |