SAWAFUJI ELECTRIC CO., LTD. Business report FY2007

Business Highlights

Financial overview

(in millions of JPY)

	FY2007	FY2006	Rate of change(%)	Factors
Overall
Sales	37,984	35,310	7.6	-Sales rose, thanks to sales increases in Asia, Europe, and Australia. This is despite decreases in Japan and North America.
Operating Profit	1,310	918	42.6	-
Ordinary income	1,384	1,062	30.3	-
Net income	855	653	30.8	-
Electrical Component Business
Sales	13,465	12,395	8.6	-Demand in the domestic market decreased. Since 2003, there had been a continuous demand for new diesel vehicles which are compliant with the new stricter emission regulation, but most customers had replaced old models with new ones by the previous fiscal year. However, sales increased due to strong exports to Asia and other regions, as well as brisk sales throughout the fiscal year in the U.S.A. where production had started in the second half of the previous fiscal year.
Operating income	794	890	(10.7)

R&D

R&D Expenditure

(in millions of JPY)

	FY2007	FY2006	FY2005
Overall	893	838	860
Electrical Component	418	418	460

R&D Activities
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.