Business Highlights

Financial overview
In million JPY FY2007 FY2006 Rate of change(%) Factors
Sales 2,000,536 1,878,398 7  
Ordinary profit 126,488 108,484 17 Despite the soaring prices of materials and purchased parts, and increases in depreciation and personnel costs, ordinary profit was up, thanks to increased sales, cost reduction initiatives implemented throughout the group, and a rise in non-operating revenue.
Net profit 80,460 59,468 35  
Automotive Division
Sales 995,252 926,028 7 See 1) below
Operating profit 41,518 33,592 24  

1) Automotive division performance by business 

・Sales stood at 500,100 million yen, up 6% or 29,900 million yen year-on-year, thanks to increased sales of the Vitz and greater volume due to the launch of the new Mark X Zio which the Company started to produce in September 2007. 


・Sales stood at 178,700 million yen, up 7% or 11,300 million yen year-on-year. 
While sales of AD diesel engines installed on the RAV4 (sold in the European market) and other models decreased, the volume of KD diesel engines for the IMV series and the volume of VD diesel engines for the Landcruiser for the overseas market enjoyed strong sales.

Automotive air-conditioning compressors

・Sales stood at 253,500 million yen, up 8% or 18,100 million yen year-on-year. Sales in Japan were slightly down, while those in overseas markets, mainly in Europe, increased.

Domestic Movement
Engine business structure enhancement

The Company plans to increase its development and production engineers/technicians in its automobile business to 2,000 by 2010, up 40 percent from the current level. To respond to Toyota Motor Corp.'s production increase and development area expansion, it will reinforce its development and production operations in the vehicle and engine divisions. In the vehicle division, it will strengthen development staff for diesel engines, whose growing demand is expected mainly in Europe, in an aim to further contribute to Toyota Motor Corp. especially in developing new products. Toyota Industries assembles the Vitz and the RAV4 for both export and domestic markets at its vehicle assembly plant in Aichi Prefecture. Its development work has mainly been on application of base engines developed by Toyota Motor Corp. By increasing staff in development, it plans to raise the ratio of new product development to approx. 90 percent, from approx. 60 percent at present. (From an article in the Nikkan Jidosha Shimbun on Aug. 2, 2007)

New wholly-owned subsidiaries

In Sept. 2007, the Company, Tokyu Co., Ltd., Tokaiseiki Co., Ltd., and Izumi Machine MFG. Co., Ltd. jointly announced that they have resolved at the Board of Directors meeting held respectively on September 26, 2007 that Tokyu, Tokaiseiki, and Izumi Machine MFG. would be merged with Toyota Industries and become wholly-owned subsidiaries of the Company, effective December 3, 2007, through a stock-for-stock deal. Tokyu, Tokaiseiki, and Izumi Machine MFG., all of whom are currently consolidated subsidiaries of Toyota Industries, are engaged primarily in the manufacture and sales of automotive components. (From a press release on Sep. 26, 2007)


R&D expenses
Unit: millions of yen FY2007 FY2006 FY2005
Automobiles 17,370 16,275 16,578
Total 36,750 34,548 31,166

R&D Structure
The Company has an R&D Center in Obu City, Aichi Prefecture, where the Company conducts advanced research that may lead to the development of new products; the development of common, fundamental technology such as materials; and the  advanced development of elemental technology which is expected to become the core element in future products designed at each division. 

The Company will reinforce resources for automotive diesel engine development. Development staff at the engine division will be increased by 50% to about 600 by 2010. To cope with Toyota Motor's strategy on diesel engines, the company will expand the engine lineup of various displacements and strengthen development for cleaner emissions, in an effort to further contribute to TMC in the field of diesel engines.(From an article in the Nikkan Jidosha Shimbun on Feb. 20, 2008)

Main products and technological developments achieved during FY 2007, which ended on March 31, 2008
・Power supply equipment, including DC-DC converters for hybrid cars
・Plug-in devices for hybrid cars
・Variable displacement compressors that automatically control cooling according to the temperature and engine condition
・Fixed displacement compressors that are compact and light
・New clean-diesel engines

Investment Activities

Capital Expenditure
Unit: millions of yen  FY2007 FY2006 FY2005
Automobiles 43,541 57,179 90,488
Total 130,776 158,632 151,794

Breakdown in capital expenditures by major automotive division:

Unit: millions of yen FY2007
The Company 24,166
Tokaiseiki Co., Ltd. 4,679
TD Deutsche Klimakompressor GmbH 2,732
TD Automotive Compressor Georgia, LLC 2,527
Tokyu Co., Ltd. 2,230
Iwama Loom Works, Ltd. 2,135
Michigan Automotive Compressor, Inc. 1,493
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. 1,212

New equipment installment (Automotive Business)
Company/ Plant
Equipment to be installed Expected Investment (Millions of yen) Started Expected Completion
Companies included in consolidated financial statement
Hekinan Plant
(Aichi Pref., Japan)
Manufacturing facilities for gasoline and diesel engines 23,758 Oct. 007 Mar. 2009
Kariya Plant
(Aichi Pref., Japan)
Manufacturing facilities for textile machinery; Manufacturing facilities for automobile air-conditioner compressors 5,024 Apr. 2008 Mar. 2009
Nagakusa Plant
(Aichi Pref., Japan)
Manufacturing facilities for compact cars 4,000 Apr. 2008 Mar. 2009
Anjo Plant
(Aichi Pref., Japan)
Manufacturing facilities for in-vehicle electronic devices 3,376 Apr. 2008 Mar. 2009
Obu Plant
(Aichi Pref., Japan)
Manufacturing facilities for compressor  components for automobile air-conditioners 3,356 Apr. 2008 Mar. 2009
Higashichita Plant
(Aichi Pref., Japan)
Manufacturing facilities for casting products used in engines; Manufacturing facilities for diesel engines 3,000 Apr. 2008 Mar. 2009
Higashiura Plant
(Aichi Pref., Japan)
Manufacturing facilities for compressor  components used in automobile air-conditioners 1,118 Apr. 2008 Mar. 2009
Domestic subsidiaries
Tokaiseiki Co., Ltd.
(Aichi Pref., Japan)
Manufacturing facilities for automotive components 3,306 Apr. 2008 Mar. 2009
Tokyu Co., Ltd.
(Aichi Pref., Japan)
Manufacturing facilities for automotive components; casting machinery 3,000 Apr. 2008 Mar. 2009
Iwama Loom Works, Ltd.
(Aichi Pref., Japan)
Manufacturing facilities for compressor components used in automobile air-conditioners 1,395 Apr. 2008 Mar. 2009