NIKKI CO., LTD. Business Report FY2007

Business Highlights

Financial Overview
(in millions of JPY) FY2007 FY2006 Rate of
Change (%)
Sales 9,783 11,956 (18.2) Overall sales decreased due to the decline in overall exports of general-purpose carburetors, the decline in exports of gas devices for South Korea, and the decline in sales of automotive devices.
Operating income (1,224) (152) - 繝サOperating income decreased due to greater initial-investment expenses needed to conduct experiments and research; greater initial expenses involved with starting a production subsidiary in the U.S.A.;  heavy expenses incurred to deal with product claims cases, and losses incurred because of negative foreign-exchange translation because of the sharp appreciation of the yen since the turn of the year.
Ordinary income (1,315) (53) - -
Current net income (947) (472) - -
Automotive device business
Sales 1,857 3,128 (40.7) Sales decreased due to decreased sales of automotive carburetors.
Operating income (30) 97 - -
Gas device business
Sales 3,139 3,839 (18.2) Sales decreased due to a decline in exports to South Korea.
Operating income (758) (169) - -

Challenges for FY2008
Enhancing its earnings' capacity and profitability is the Company's first priority. Based on this, the Company will increase the level of the added value it provides and also drastically minimize costs. For that purpose, by increasing sales activities that enable it to present solutions to its customers, and creating new products that meet customers needs, the Company will increase sales. At the same time, it will steadily eliminate all kinds of waste in procurement, production and sales activities.


R&D expenses in FY2007were 231 million yen. 

<Currently running R&D activities>
Fuel Systems
- In response to activities to increase market penetration and promote clean energy vehicles by the Japanese government, the Company is conducting R&D activities on fuel systems for CNG powered vehicles and alternative diesel LPG vehicles; and activities on fuel supply systems for industrial engines, which use natural gas and LPG. It is selling these products in and outside Japan. Since July 2006, the Company has been conducting R&D activities as a company given a special grant to promote further market penetration of fuel efficient LPG vehicles because the New Energy and Industrial Technology Development Organization (NEDO), an independent administrative agency, specified these types of activities as eligible since the previous fiscal year.
- The Company is working on R&D activities designed to respond the rigorous anti-air pollution measurements under the new long-term exhaust emissions regulations that went into effect.

Automotive Devices
The Company is working on R&D activities involving electronically controlled air intake devices such as variable intake valves that improve engine combustion and valves that improve the flow of gas to the combustion chamber. Its R&D activities include valves that respond to next-generation products.

- The Company works on developing new control logics that respond to new micro computers; and modeling solutions. It also promotes R&D activities by adopting technologies that were developed externally.
- The Company is working on R&D activities that respond to exhaust emissions regulations worldwide, as well as on OBD (On Board Diagnosis) II. In addition it is involved in developing fuel application technology that responds to customer requirements.

Investment Activities

Capital investment
- Capital investment in FY2007 was 649million JPY.
繝サFor the Automotive Device Business, 81 million JPY was invested to streamline the manufacturing processes of automobile devices.
繝サFor the Gas Device Business, 125 million JPY was invested mostly to streamline the assembly of ECUs (electronic control units) and upgrade inspection equipment.

New facilities
Site Name Location Segment Purpose Planned investment
(million JPY)
Start Planned completion
Atsugi Plant Atsugi city, Kanagawa Pref. Automotive device business To streamline manufacturing facilities, etc. 20 2008.04 2009.03
Gas device business To streamline manufacturing facilities, etc. 132 2008.04 2009.03