Nikki Co., Ltd. Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of
Change (%)
Sales 8,982 8,040 11.7 -Performance improved because of a significant increase in sales at the gas-fueled automotive devices business.
Operating income 862 566 52.3 -
Ordinary income 826 395 109.1
Current net income 1,247 317 293.4 -The Company posted an extraordinary profit of 474 million yen, which was the amounted gained from the sale of land sold to make room for a new public road.
Automotive device business
Sales 1,123 1,128 (0.4) -Sales of automotive carburetors were about the same level of those of the previous year, remaining basically flat year-on-year.
Operating income 130 93 39.8 -
Gas device business
Sales 4,070 3,010 35.2 -Operating revenue increased year-on-year due to greater volumes of fuel-injection systems sold to Korea and Southeast Asia.
Operating income 381 96 296.9 -

New Company

-The Company announced that it will establish a production and sales subsidiary in India. The company will accelerate completing the plant and installing necessary equipment, aiming to start producing carburetors and automotive fuel supply devices by the end of this year. The Indian facility is going to export half the volume of its products to Japan, while supplying the other half to the local plants of Japanese and other automakers. The subsidiary, Nikki India Private Limited, will be established in July this year. It will be capitalized at approximately 200 million yen, of which 75 percent will be provided by Nikki, and the remaining 25 percent by Nikki's development subsidiary. Details such as its headcount and sales targets have not been decided yet. This is the third time for Nikki to locate a plant outside Japan, following its existing facilities in the U.S. and China. (From an article in the Nikkan Jidosha Shimbun on June 30, 2011)


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 86 83 172

R&D Activities

Gas appliance business
- Development activities in the area of gas appliances were focused on electronic fuel injection systems for CNG vehicles and LPG vehicles. The Company also developed electronic control technology for these products.  
- R&D spending at the Gas Appliance business totaled 45 million yen.

Automotive device business
- The Automotive Device Division developed high-pressure pumps for dimethyl ether (DME) and other alternative fuels.
- R&D spending at the Automotive Device business totaled 16 million yen. 

-The Company is conducting R&D activities in response to new generation microcomputers, modeling, new control concept and downsizing.

-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

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 312 273 741
Automotive device business 7 3 24
Gas device business 192 135 548

-The Company focused investment on products and R&D areas expected to provide growth in the long term. It also made investments in labor savings, work rationalization and improved product liability.

Automotive device business
-The Company made capital investments in streamlining production.

Gas appliance business
-The Company invested in facilities and equipment corresponding to new models and more streamlined production.

Planned Capital Investments

(As of Mar. 2012)
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. 4 Apr. 2012 Mar. 2013
Gas device business To streamline manufacturing facilities, etc. 192 Apr. 2012 Mar. 2013
Automotive device business,
Gas device business,
General-purpose carburetors (General-purpose equipment business)
To streamline manufacturing facilities, etc. 247 Apr. 2012 Mar. 2013