Yanagawa Seiki Co., Ltd. Business report FY2006

Business Highlights

Financial overview
(In million yen) FY2006 FY2005 Rate of Change(%) Factors
Sales 134,623 125,061 7.6 -Sales rose year-on-year, as its major customers increased the volume of products they manufactured. 
Operating income 4,435 3,427 29.4 -Operating income went up from what it was last year, thanks to an improved sales-to-cost ratio. 
Ordinary income 4,111 3,058 34.4 -Ordinary income and net income significantly increased year-on-year as a result of the Company's initiatives to enhance its operating base and reduce costs.
Net income 2,674 1,080 147.6
Automotive parts division
Sales 101,775 95,759 6.3 -Sales and income at the automotive parts business increased year-on-year, supported by greater production volume of manual transmission systems, engine parts, and suspension products.
Operating income 2,921 2,577 13.3


R&D structure
-The Company conducts its major R&D activities in line with developments being made at Honda Motor Co., Ltd. Also, in the area of aluminum die casting products, it works jointly with a motorcycle manufacturer based in the U.S.

Recent developments(Automotive products) 
The focus of development activities is on the following:
-Transmission systems and transmission parts such as differential gear cases and high-strength aluminum die casting products.

Total amount of R&D expenditure during FY2006 was 261 million yen. 

Investment Activities

-Capital spending in fiscal year 2006 totaled 8,682 million yen, of which 6,888 million yen was invested in the automotive parts division. 
-In fiscal year 2007, the Company plans to invest 4,390 million yen in the domestic auto parts business, and another 3,073 million yen in the overseas auto parts business.