Yanagawa Seiki Co., Ltd. Business report FY2007

Business Highlights

Financial overview (in millions of JPY)
  FY2007 FY2006 Rate of Change(%) Factors
Sales 131,981 134,623 (2.0) Sales decreased year-on-year due to the following factors: 
-A decrease in the production volume of motorcycle products and general parts. 
-A lower dollar rate. 
Operating income 4,779 4,435 7.8 -
Ordinary income 4,168 4,111 1.4 Ordinary income slightly increased year-on-year as a result of the Company's initiatives to improve management structure and reduce costs. 
Net income 2,317 2,674 (13.4) -Net income fell year-on-year, since the company had to pay additional costs for corporate tax adjustment. 
Automotive parts division
Sales 102,394 101,775 0.6 Sales and operating income rose year-on-year, supported by increases in production volume for both manual transmissions and engine parts.  
Operating income 3,172 2,921 8.6

Expanding production operations
-As the Company won new programs to supply parts for use in Honda Motor's Global IMA hybrid electric vehicles, it stepped up its aluminum business by expanding the Kameyama facility, and increasing its die casting capacity at the Kamaeyama Plant, Thai Plant, and North American Plant. It also increased its scope of business, while maintaining its focus on its core, 4-pin differential business.


-Total amount of R&D expenditure during FY2007 was 276 million yen.

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.

-Since 2006, the Company has been working on developing aluminum composite materials through an industry-university collaboration with Meisei University. Using a new testing kiln they established at Meisei University, the Company and Meisei University have been conducting various experiments and analysis since FY2007. They have already filed a patent application for some of their new technologies.

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.

Name Location Business
Technical Center Haga-gun,
Tochigi Pref.
Design and prototype production utilizing the most advanced CAD/CAM simulation and testing systems.

Investment Activities

-Capital spending in fiscal year 2007 totaled 8,713 million yen, of which 7,368 million yen was invested in the automotive parts division. 

-The Company continues to invest in preparing production lines for new businesses, increasing production capacity, streamlining production operations, and enhancing R&D functions.  

-In fiscal year 2008, the Company plans to invest 4,423 million yen in the domestic auto parts business, and another 653 million yen in the overseas auto parts business.