Toyota Industries Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of change(%) Factors
Overall
Sales 1,479,839 1,377,769 (13.0) -
Operating profit 68,798 22,002 - -
Ordinary profit 73,911 31,756 121.4 -
Net profit 47,205 (26,273) - -
Automotive Division
Sales 825,319 791,166 2.1 1)
Operating profit 32,876 23,663 - -

1)
Automotive division performance by business
- Domestic sales decreased in Japan following the termination of the eco-car incentive program. Overseas, however, the market recovered in North America and expanded in Asia.

Automobiles
- Sales at the complete vehicle division were 377.5 billion yen, down 23.2 billion yen (6 percent) from the previous year’s result. The decline was attributed to a drop in sales of the Toyota RAV4 and the Toyota MarkX Zio, despite an increase in sales of the Toyota Vitz.

Engines
- Sales of engine products were 197.3 billion yen, up 32.3 billion yen (20 percent) from the previous year’s result thanks to increased sales of the KD diesel engines and the AR gasoline engines.

Automotive air-conditioning compressors
- Although sales of air-conditioning compressors decreased in Japan, global compressor sales totaled 191.8 billion yen, up 14.8 billion yen (8 percent) from the previous year’s result  thanks to strong sales overseas.

Contracts

-The Company announced on September 29, 2010 that it has started manufacturing plastic quarter windows and partitions for the Lexus LFA two-seat sports car, which Toyota is going to begin assembling at the end of this year. Toyota Industries launched production of these components at its Morioka Plant in Higashiura, Aichi Prefecture on September 24, 2010.  (From an article in the Nikkan Jidosha Shimbun on September. 30, 2010)

Financial Overview for FY2009

(in millions of JPY)
  FY2011
(forecast)
FY2010
Sales 1,570,000 1,479,839
-Automotive Division 804,100 804,100
Operating income 70,000 68,700
Ordinary income 80,000 73,900
Net income 46,000 47,200

Sales of Automotive Products

(in millions of JPY)
  FY2011
(forecast)
FY2010
Complete vehicles 343,000 375,500
Engines 188,000 197,300
Compressors 213,000 191,800
Foundry parts, Electronic components 46,000 39,300

(Sales categorized based on customers’ business lines)

 

 

R&D

R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 27,788 26,826 33,646
Automobiles 17,613 15,257 17,033


- During fiscal year 2010, R&D focus was on developing plastic windows, which contribute to reducing vehicle weight; high-performance variable displacement compressors; electrically driven compressors for plug-in hybrids and hybrid electric vehicles; auxiliary power sources; and electric charging devices for plug-in hybrids and hybrid electric vehicles.

 

 

Product Development

- The company said it will develop a new device for recharging plug-in hybrid and electric vehicles reinforced with new communication functions for sale by October this year. Information on how each charging device is being used and how much electricity is being consumed is collected through the mobile phone network and processed by the data center for supply to installers of the devices. The new model will be the nation's first commercial production device with communication functions. The current model of the charging instrument was jointly developed by Toyota Industries and Nitto Kogyo and put on the market in July last year. About 100 units have been sold to convenience stores, gas stations and community organizations. The new model is also developed jointly with Nitto Kogyo, manufactured by Nitto and sold and serviced by Toyota Industries. (From an article in the Nikkan Jidosha Shimbun on July. 13, 2010)

- The company has developed the "Panoramic Roof," one of the world's largest size plastic ceiling products for automobiles. Despite a size as large as 1.6 square meters, its weight is about 11 kilograms, which is as much as 44 percent lighter than glass roofs. Preparations for its commercial production are now underway at the Morioka Works in Higashiura-cho, Aichi Prefecture. The company is expanding the plastic glazing business, as it will begin to supply plastic quarter windows for Toyota's premium sports car "Lexus LF-A" by the end of this year. A 3,000-ton molding machine has already been installed in the Morioka Works to support manufacture of panoramic roofs. (From an article in the Nikkan Jidosha Shimbun on May. 14, 2010)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 60,019 47,562 134,534
Automobiles 20,993 12,000 52,842

Breakdown in Capital Expenditures by Major Automotive Division

(in millions of JPY)
Unit FY2010 FY2009 FY2008
The Company 13,851 7,333 32,920
Tokyu Co., Ltd. N.A. N.A. 5,475
Tokaiseiki Co., Ltd. 1,667 N.A. 4,802
Toyota Industry Automotive Parts (Kunshan) Co., Ltd. N.A. 2,237 2,829
Iwama Loom Works, Ltd. N.A. N.A. 1,620
TD Deutsche Klimakompressor GmbH N.A. N.A. 1,520
Michigan Automotive Compressor, Inc. 1,036 N.A. N.A.

New Equipment Installations (Automotive Business)

(As of Mar. 31, 2011)

Company/ Plant
(Location)
Equipment to be installed Planned amount of investment (millions of yen) Project period
From To
Companies included in consolidated financial statements
Nagakusa Plant
(Aichi Pref., Japan)

Facilities for manufacturing compact cars

12,079 Sep. 2009 Mar. 2012
Kariya Plant
(Aichi Pref., Japan)
Facilities for manufacturing automobile air-conditioner compressors
Facilities for manufacturing textile machinery
4,561 Mar. 2011 Mar. 2012
Obu Plant
(Aichi Pref., Japan)
Facilities for manufacturing compressor components for automobile air-conditioners 3,075 Apr. 2011 Mar. 2012
Hekinan Plant
(Aichi Pref., Japan)
Facilities for manufacturing gasoline and diesel engines 3,000 Apr. 2011 Mar. 2012
Higashichita Plant
(Aichi Pref., Japan)
Facilities for manufacturing casting products used in engines
Facilities for manufacturing diesel engines
2,200 Apr. 2011 Mar. 2012
Kyowa Plant
(Aichi Pref., Japan)
-Facilities for manufacturing in-vehicle electronic devices
-Facilities for manufacturing diesel engine parts
-Facilities for manufacturing press dies
1,210 Apr. 2011 Mar. 2012
Anjo Plant
(Aichi Pref., Japan)
Facilities for manufacturing in-vehicle electronic equipment 690 Apr. 2011 Mar. 2012
Higashiura Plant
(Aichi Pref., Japan)

Facilities for manufacturing compressor components used in automobile air-conditioners

375 Apr. 2011 Mar. 2012
Subsidiaries in Japan
Tokaiseiki Co., Ltd.
(Shizuoka Pref., Japan)

Facilities for manufacturing automotive components

1,965 Apr. 2011 Mar. 2012
Subsidiaries outside Japan
Michigan Automotive Compressor, Inc.
(Michigan, USA)
Facilities for manufacturing compressor components used in automobile air-conditioners 4,743 Apr. 2011 Mar. 2012
TD Automotive Compressor Indonesia
(Kota Bekasi, Indonesia)
Facilities for manufacturing compressor components used in automobile air-conditioners 1,995 Apr. 2011 Mar. 2012
Kirioskar Toyoda Textile Machinery Pvt. Ltd.
(Bangalore, India)

- Facilities for manufacturing automotive components 
- Facilities for manufacturing textile machinery

1,764 Apr. 2011 Mar. 2012
Toyota Industry Automotive Parts (Kunshan) Co., Ltd.
(Jiangsu, China)
Facilities for manufacturing casting products used in engines 1,066 Apr. 2011 Mar. 2012

 

Overseas investments

-The Company, Denso Corporation, and Toyota Tsusho Corporation announced that it will establish a new company in Indonesia to manufacture compressors for car air conditioner systems. The establishment is intended to increase their compressor supply capabilities to meet the growing demand in the ASEAN automobile market. The new company, P.T. TD Automotive Compressor Indonesia (TACI), will start production in June 2011 with the initial production volume of 1million compressors a year. By fiscal year 2015, it is expected to be able to produce 1.6 million compressors a year, including those for use in the Toyota Etios for the Indian market. TACI will succeed the production lines and workforce of P.T. Denso Indonesia. It will be capitalized at 187.3 billion rupiahs (approximately 1.73 billion yen), of which 50.1 percent will be provided by Toyota Industries and the remaining by Denso International Asia Pte. Ltd., P.T. Toyota Tsusho Indonesia, and a local auto parts manufacturer. TACI, which will have 500 employees at the time of the operation launch, is going to add more staff in the future. An investment of 2 billion yen is planned by the end of fiscal year 2015 for the purpose of boosting its production capacity. (From an article in the Nikkan Jidosha Shimbun on December. 9, 2010)