Business Highlights

Financial overview
In million JPY FY2006 FY2005 Rate of change(%) Factors
Sales 1,878,398 1,505,955 25  
Ordinary profit 108,484 80,635 35 Despite of soaring prices of materials and increase in depreciation and personnel cost, ordinary profit was up thanks to sales increase, promotion of cost reduction efforts and a rise in non-operating revenue. 
Net profit 59,468 47,077 26  
Automotive Division
Sales 904,893 767,564 21 Sales in Japan have been slow, while overseas sales increased in Asia and Latin America. 
Operating profit 33,592 20,095 67

<Business performance by division>
- Sales stood at 470,200 million yen, up 26% year-on-year.
- Sales of RAV4 have been strong in North America and Europe. Vitz also enjoyed brisk sales overseas.
-Sales stood at 167,400 million yen, up 26% year-on-year. 
- KD diesel engines for IMV series and AD diesel engines installed on RAV4 for the European market enjoyed strong sales.

Automotive air-conditioning compressors

-Sales stood at 235,400 million yen, up 9% year-on-year.
- Sales in Japan were down, while those for North America, Europe and China increased.

New Joint Venture
In Dec 2006, TD Automotive Compressor Georgia, LLC (TACG),-a joint venture between the Company and Denso Corporation to produce car air-conditioning compressors in Georgia, U.S.- held a grand opening ceremony at its new facility on November 30. TACG is the second joint venture between the two companies to produce car air-conditioning compressors in North America and began producing variable displacement compressors in December 2005. TACG's variable displacement compressors are currently supplied for the Toyota Camry and Chrysler Sebring, and TACG expects to produce 950,000 units in the fiscal year 2006. Also TACG plans to annually produce two million units of variable displacement compressors by 2010. (From an article in the Nikkan Jidosha Shimbun on Dec.2, 2006)


R&D expenses
Unit: millions of yen FY2006 FY2005
Automobiles 16,275 16,578
Total 34,548 31,166

Main areas of R&D:
- Power supply equipment including DC-DC converters for hybrid cars
- Variable displacement compressors that automatically control cooling performance depending on the temperature and engine status
- Fixed displacement compressors that are compact and light
- New clean diesel engines

Investment Activities

Capital Expenditure
Unit: millions of yen  FY2006 FY2005
Automobiles 57,179 90,488
Total 158,632 151,794

Major breakdown in Automotive business ?
In particular, the Company spent 8,079 million JPY for TD Automotive Compressor Georgia, LLC.; 5,874 million JPY, Tokyu Co., Ltd. 4,319 million JPY縲ゝoyota Industry Automotive Parts (Kunshan) Co., Ltd. 2,037 million JPY, Tokaiseiki Co., Ltd. 1,589 million JPY, TD Deutsche Klimakompressor GmbH 1,570 million JPY, Iwama Loom Works, Ltd. 1,204 million JPY, Izumi Machine Mfg. Co., Ltd. 1,025 million JPY.

New equipment installment (Automotive Business)
Company/ Plant
Equipment to be installed Expected Investment (Millions of yen) Started Expected Completion
Nagakusa Plant
(Aichi Pref., Japan)
Manufacturing facilities for compact cars 15,085 Aug. 2006 Mar. 2008
Kariya Plant
(Aichi Pref., Japan)
Manufacturing facilities for textile machinery, Manufacturing facilities for automobile air-conditioner compressors 9,220 Apr. 2007 Mar. 2008
Hekinan Plant
(Aichi Pref., Japan)
Manufacturing facilities for gasoline and diesel engines 7,264 Mar. 2007 Mar. 2008
Higashiura Plant
(Aichi Pref., Japan)
Manufacturing facilities for compressor  components for automobile air-conditioners 1,892 Feb. 2007 Mar. 2008
Obu Plant
(Aichi Pref., Japan)
Manufacturing facilities for compressor  components for automobile air-conditioners 1,841 Feb. 2007 Mar. 2008
Higashichita Plant
(Aichi Pref., Japan)
Manufacturing facilities for castings for engines, Manufacturing facilities for diesel engines 1,380 Apr. 2007 Mar. 2008