SAWAFUJI ELECTRIC CO., LTD. Business report FY2006

Business Highlights

Financial overview

(in millions of JPY) FY2006 FY2005 Rate of
Sales 35,310 35,171 0.4 -
Ordinary income 1,062 892 19.0 -
Net income 653 536 21.8 -
Electrical Component Business
Sales 12,395 11,608 6.8 see note 1) below
Operating income 890 599 48.4


Demand was not so high during the second half of the fiscal year because the need to replace diesel vehicles with ones that are more compliant with stricter emission regulations had subsided. However, for the full year, the Company received the same amount of orders as it had the previous year, which resulted in a slight increase in sales and profit. The increase in sales was mainly due to greater orders received in the U.S., the market on which the Company has focused.

Prospects for fiscal year FY2007
- Although sales of electric components in the U.S. are forecast to be brisk, demand in Japan for ordinary trucks is expected to be lower than that of the previous year. Also, since sales of electronic parts are predicted to be lower, sales for the entire year, then, are expected to be lower than those of fiscal 2007.


R&D Expenditure
(in millions of JPY) FY2006 FY2005 FY2004
Overall 838 860 842
Electrical Component 418 460 364

Electrical Components
Currently developing small and light, and high-powered electrical components that are in compliance with new regulations on mid-to-large-sized diesel-powered vehicles.

Investment Activities

Investment Expenditure
(in millions of JPY) FY2006 FY2005 FY2004
Investment Expenditure 835 595 301