NOK Corporation Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of Change (%) |
Factors | |
Overall | ||||
Sales | 540,859 | 495,251 | 9.2 | - |
Operating income | 26,519 | 30,012 | (11.6) | - |
Ordinary income | 35,202 | 34,694 | 1.5 | - |
Current net income | 22,216 | 16,016 | 38.7 | - |
Sealing product division | ||||
Sales | 257,974 | 259,143 | (0.5) |
-Sales of automotive products were strong during the first half of the fiscal year. However, due to the worsening political situation between Japan and China during the second half, sales to Japanese OEMs in China fell year-on-year. Sales in Japan were lower year-on-year, impacted by lower new-vehicle demand in line with the end of eco-car sales incentives. In the end, sales for the entire fiscal year increased, supported by strong new-vehicle production in North America and Asia. -Sales of general industrial equipment/machinery were lower, impacted by the continuing huge slump in demand for construction equipment, mainly in China. |
Operating income | 21,119 | 26,294 | (19.7) | - |
Joint Ventures
-PNDT, which is a joint-venture between Pyung Hwa Holdings (parent company of Korea based Pyung Hwa Industrial) and the Company of Japan, has held a ground-breaking ceremony for its new plant in Yeongcheon, Gyeongsangbuk-do. The facility will have 25,000 square meters of building area on 48,000 square meters of land. It is scheduled to be completed in October 2013 and will produce 11 million damper pulleys per year. Annual sales are expected to reach 60 billion won. (From a press release, April 22, 2013)
Outlook for FY ending Mar. 31, 2014 |
(in billion JPY) |
FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Sales | 580.0 | 540.9 | 7.2 |
Operating income | 29.7 | 26.5 | 12.1 |
Ordinary income | 32.6 | 35.2 | (7.4) |
Net income | 18.6 | 22.2 | (16.2) |
Outlook by Segment for FY ending Mar. 31, 2014 |
(in billion JPY) |
FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Seal | 273.5 | 258.0 | 6.0 |
Electronic Device Product | 270.0 | 244.4 | 10.5 |
Roll | 25.0 | 26.7 | (6.4) |
Other | 11.5 | 11.7 | (1.7) |
Total | 580.0 | 540.9 | 7.2 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 6,834 | 6,403 | 6,375 |
Seal | 5,212 | 4,706 | 4,807 |
R&D Activities
Seal-The Company worked to develop environmentally friendly products such as products contributing to lower energy use by lowering frictional loss; and other eco-friendly products for hybrid, electric, and fuel-powered vehicles.
-The Company developed and launched sales of low-friction, automotive oil-seals, developing conventional coated seals and a new type of low-friction seal designed to reduce friction force, in addition to seals based mainly on rubber materials. Also, the Company launched sales of seals that offer better features such as being more dust resistant, which makes them capable of responding to poor road conditions overseas such as in China and Thailand
-In its O-ring business, the Company launched material that can handle new coolants and which are environmentally friendly; and coating material that makes assembly easier. In addition, it conducted R&D activities to develop a material that is workable with hydrogen gas used in fuel cells.-As part of its activities designed to create seals for use in EVs and HEVs, the Company developed smaller and low-reaction force gaskets for next-generation vehicles.
-The Company is working to develop FPC composites in response to the greater penetration of on board electronics, and is at the stage of conducting some evaluations.
Electronic Device Product
-The Company succeeded in developing a double-sided FPC that can be commercially produced. This FPC, which is 51.5 micrometers thin (half the thickness of existing ones), is part of the Company's efforts at making thinner and lower cost products.
-In its work in the area of multi-layered FPCs, the Company developed technology making it possible to produce FRBBs (Flex Resin Build Boards) that are 0.19mm thick and have four layers. The Company started producing and delivering these multi-layered FPCs that are exceptionally easy to install.
-Customers are demanding more efficient heat releasing (radiation) properties in digital LED signage and automotive LED lights. As a result, the Company developed metal-based FPC technology and is conducting sales activities catered to R&D activities at customers in various business sectors.
R&D Facilities
Facility | Location |
Shonan Development Center | Kanagawa Pref., Japan |
Technical Cooperation Agreement |
(As of Mar. 31, 2013) |
Partner | Content | Signed on |
Freudenberg (Germany) |
Introduction and licensing of such seal product as oil seal, O ring and related technologies | Jan. 1, 2009 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 52,802 | 27,158 | 23,480 |
Seal | 27,957 | 16,099 | 13,159 |
Sealing business
-In Japan, the Company invested mainly in the facilities at its Fukushima Plant that produces oil seals; and outside Japan, mainly in Wuxi Nok-Freudenber Oil Seal Co., Ltd. and Thai NOK Co., Ltd.
New Facilities
Facilities (Location) |
Equipment | Amount (in million JPY) |
Date of start | Scheduled date of completion |
Kitaibaraki plant (Ibaraki Pref., Japan) |
Facility for manufacturing resin processed products |
2,036 | Jul. 2012 | Jul. 2013 |
Thai NOK Co., Ltd. (Chonburi, Thailand) |
Facilities to manufacture various types of seals | 2,800 | Jun. 2013 | May 2014 |
Outlook of Capital Expenditure for FY ending Mar. 31, 2014 |
(in billion JPY) |
FY ending Mar. 31, 2014 (Forecast) |
FY ended Mar. 31, 2013 (Actual Results) |
Rate of Change (%) |
|
Japan | 21.9 | 19.5 | 12.3 |
Asia | 21.5 | 33.1 | (35.0) |
Europe/USA | 0.1 | 0.1 | 0 |
Total | 43.5 | 52.8 | (17.6) |