Tokai Rika Co., Ltd. Business Report FY2011
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 319,577 | 327,622 | (2.5) | - |
Operating income | 13,156 | 18,906 | (30.4) | -Even though the Company actively worked to reduce costs, it nevertheless recorded lower operating income year-on-year due the high evaluation of the yen. |
Ordinary profit | 14,977 | 20,058 | (25.3) | - |
Current net income | 8,123 | 5,234 | 55.2 | - |
Contracts
-The Company has developed a steering wheel for commercial use, main parts of which are made from bamboo, for the first time in the world. Bamboo, which absorbs carbon dioxide in the process of growing and can be obtained easily as material, is excellent in terms of environmental responsiveness. The new steering wheel has been chosen for the first time for the next generation "Lexus GS" slated for launching in early 2012. It will be made available as option as part of the interior package. The newly developed product will be manufactured at Tokai Rika's affiliate in Kochi Prefecture. (From an article in the Nikkan Jidosha Shimbun on December 7, 2011)Divestitures
-Shinchang Electrics Co., Ltd. announced that it will increase its investment in STF Co., Ltd., raising its shareholding in the company from 40.0 percent at present to 100.0 percent. STF, based in Cheonan, Chungcheongnam-do, manufactures and sells automotive electronics components. The company was established in 2002 as a joint venture company with Japanese companies, Tokai Rika Co., Ltd. and Furukawa Electric Co., Ltd. The transaction is expected to close in April 2012. (From a press release on March 2, 2012)
Outlook for FY ending Mar. 31, 2013 |
(in millions of JPY) |
FY ending Mar. 31, 2013 (Estimate) |
FY ended Mar. 31, 2012 (Result) |
Rate of change (%) |
|
Sales | 356,000 | 319,577 | 11.4 |
Operating income | 23,000 | 13,156 | 74.8 |
Ordinary income | 23,500 | 14,977 | 56.9 |
Net income | 15,000 | 8,123 | 84.7 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D expenses |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Japan | 17,075 | - | - |
North America | 515 | - | - |
Overall | 17,590 | 16,969 | 16,607 |
R&D Achievements
-The Company strove to develop not only new products but also new elemental technology, which enabled it to develop a variety of products. These products included mainly automotive switches, with input devices providing further advances; security systems in which optimized electronics technology has been applied in key-locks; and safety systems such as seatbelt and mirrors.Switches
-The Company developed integrated input devices/systems that provided greater safety and easier operating, such as steering-system switches and other cabin-interior switches.
-The Company developed and began commercial production of steering switches that can be operated in tandem with indicators, items for which more advances are predicted in line with the greater diversification of functions. It also developed and started manufacturing more compact and lower cost heating-control switches, which have been made attractive because of added decoration.
-In working together with its production operations in North America, the Company is presenting product offerings that factor in local needs.
Security Systems
-The Company was successful in its R&D activities aimed at developing low-cost smart-key systems that can be marketed globally, and at developing systems offering improved security.
-The Company pioneered and began mass-producing by-wire shift levers, which are typified by their use in HVs and EVs, in advance of its competitors.
Safety Systems
-The Company developed a standard mirror designed for high-end vehicles, which it plans to mass-produce in tandem with the standard mirrors it has already been producing for compact cars, hoping to increase the types of vehicles to which it can deliver these products.
-The Company began mass-producing a steering-wheel made of bamboo, as part of its initiatives to raise the product-appeal of its cabin-interior products.
Licensing of Technology from Other Companies |
(As of Mar. 31, 2012) |
Company | Partner | Country | Outline of agreements | Contract period |
Tokai Rika Co., Ltd. | Autoliv Development AB | Sweden | Licensing of patent on automotive seatbelts | 2007.12.01 - the patent expiry date |
TRW Vehicle Safety Systems Inc. | USA | Licensing of patent on automotive seatbelts | 2008.01.01- the patent expiry date |
Licensing of Technology to Other Companies |
(As of Mar. 31, 2012) |
Partner | Country | Outline of tie-ups | Contract period |
Ashimori Industry Co., Ltd. | Japan | Licensing use of patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Licensing use of international patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Overall | 16,406 | 11,707 | 11,122 |
-In addition to investing in facilities and equipment in order to shift to producing new products, the Company invested in a new factory and also in production facilities in Brazil, as a step toward responding to the growth in emerging-market countries.
-For the fiscal year ending March 2013, the Company plans to invest 18,500 million yen, mainly in its automotive parts business.
New Equipment Installations |
(As of Mar. 31, 2012) |
Plant | Location | Type of facility | Estimated amount of investment (in million JPY) |
Project Period | |
From | To | ||||
Headquarters/Headquarters Plant | Aichi Pref., Japan |
Facility to manufacture products compatible with in-vehicle electronics; parts for switches; and conduct assembly-inspections | 3,133 | Apr. 2012 |
Mar. 2013 |
Toyota Plant | Aichi Pref., Japan |
Facility to manufacture seatbelts, decorative ornamentations; and conduct assembly inspections | 1,423 | Apr. 2012 |
Mar. 2013 |
Otowa Plant/Hagi Plant | Aichi Pref., Japan |
Facility to manufacture parts for key-locks, steering wheels, etc.; and conduct assembly inspections | 3,306 | Apr. 2012 |
Mar. 2013 |