TACHI-S CO., LTD. Business Report FY2006
|in millions of JPY||FY2006||FY2005||Rate of Change (%)||Factors|
see note 1) below
|Operating income||(190)||3,084||-||see note 2) below|
|Ordinary income||583||4,477||(87.0)||see note 3) below|
|Net income||(503)||1,940||-||see note 4) below|
1) The Company saw an increase both in sales and profits due to an increase in sales of products for new types of vehicles sold in Mexico and China, as well as to a favorable exchange rate, despite a decrease in its domestic sales.
2) Operating income decreased due to greater expenses incurred in this most recent fiscal year. The decrease stemmed from the fact that the Company had to bear the expenses associated with preparing for production operations at the joint ventures established in China and the United States as Nissan businesses; a sales decline in its value-added products as a result of a change in its domestic product mix; a decrease in sales at its Canada subsidiary due to fluctuations in the exchange rate; and increased costs involved with starting production of products for new types vehicles sold in domestic and overseas markets.
3) In addition to Factor 2 above, the increased expenses involved with preparations for starting production at an affiliate accounted for under the equity method, which was established as a Nissan business in the United Kingdom, as well as the decreased profits at its domestic and overseas affiliates accounted for under the equity method, negatively affected the Company's ordinary income.
4) Net income decreased because the Company posted the adjusted losses at its domestic affiliates accounted for under the equity method as an extraordinary loss.
Business by Region:
The sales decreased 3.6% to 119,642 million yen, compared to the last fiscal year. The decrease stems from a decline in sales as a result of a transition by customers to switch to new model vehicles, and a change in the Company's product mix.
The operating income in Japan decreased to 17,950,000 yen. This was due to a decrease in sales, expenses involved with launching production for new model vehicles, and a change in the Company's product mix.
The sales in this region were 43,331 million yen (a 2.5% increase year-on-year), due to a favorable exchange rate.
The operating income decreased 76.4% to 84 million yen, compared to the previous fiscal year. This decrease stems the fact that the Company had to bear the costs to prepare for starting production at Tacle Seating U.S.A. LLC, which was established as a Nissan business.
In the translated amount in yen, the sales in this region increased to 3,348 million yen (a 2.4% increase year-on-year), due to exchange fluctuation..
The operating income decreased 581 million, due to expenses associated with starting
The sales in Mexico increased 57.6% to 18,251 million yen, compared to the last fiscal year, due to increased sales involved with starting production of new model vehicles.
-The operating income decreased 161 million because of expenses accrued in advance involved with starting mass production of its new products.
-The sales in France increased 50.7% to 309 million yen, compared to the previous fiscal year, due to a payback of development costs.
-Operating income decreased 56 million yen as a result of development costs accrued advanced and increased fixed costs.
-Sales increased to 1,914 million yen. This increase stems from the fact that Tacle Guangzhou Automotive Seat Co., Ltd., which was established as a Nissan business, started commercial production.
-Operating income was 364 million yen. The loss was due to preparation costs incurred to launch production operations, which were incurred in advance of the Company's subsidiary starting operations.
The Company announced it will sell its 47.5% equity in its joint venture in China, Xi'an Qintai Seat Co., Ltd., which manufactures seats for small passenger cars, to its joint venture partner. Tachi-S has decided to withdraw from the joint operation because it can no longer expect stable business due to a sellout of a local automaker, which is its leading customer, to a private enterprise. The selling price will be 2.1million yuan (about 30 million yen), which is estimated to produce a loss of about 39 million yen on the part of Tachi-S. Xi'an Qintai Seat Co.is a three-party joint venture established in February 2001 by the company, a Chinese partner and a Japanese trading company. The Chinese partner, which has the same percentage of ownership with Tachi-S will take over its shares. (From a story in the Nikkan Jidosha Shimbun on Jul. 24, 2006)
The Company and Kasai Kogyo Co., Ltd., an interior door trim manufacturer, announced a business tie-up on joint product development and mutual consignment of manufacturing, in a bid to strengthen their business foothold and increase the corporate value. The two suppliers, having concluded a capital tie-up this spring, will step up their partnership. This business alliance is aimed at enhancing services for their customers by complementing frame processing and sewing techniques for seat production of the Company with plastic processing technology of Kasai Kogyo. Both companies said that synergy effect can be expected by mutual use of each other's facilities, including overseas production bases. (From an article in the Nikkan Jidosha Shimbun on Nov.15, 2006)
The Company announced establishment of a new company to comprehensively supervise and manage automobile seat sewing suppliers in its group. The aim is to form standardized and practical production systems in order to strengthen the group's competitiveness by concentration of its proprietary technology and management resources. The new company will start its operation as a parent company to supervise two companies specializing in sewing business; Tachikawa Kogyo in Yokote City, Akita Prefecture, and Fujitaka Kogyo in Nagoya City, Aichi Prefecture. As the operation gets on track in due course of time, Chinese sewing companies will also be put under its management to increase efficiency on a global scale.(From a story in the Nikkan Jidosha Shimbun on Jul. 23, 2006)
|in millions of JPY||FY2006||FY2005||FY2004|
-In Mar,1993 the Company established and concentrated the R&D division at the Tachi-S Technology Center in Oume City, Tokyo.
-In the Chukyo region, the Company established the Tachi-S Technology Center Aichi in Anjo City, Aichi Pref., in August 1999.
-In July,1986,Established Tachi-S Engineering USA, Inc. in Michigan, USA.
-In June 1998, the Company completed construction of a new building in order to strengthen its capabilities in technological development, with the aim of building a closer relationship between the firm's development centers in Japan and the U.S.
-Dec, 2001, the Company opened a European office in Dusseldorf, Germany. Its objective is to become a hub for collecting European market information and to engage in marketing activities in Europe.
-In October, 2004, the Company established Tachi-S Engineering Europe S.A.R.L. in France, integrating the Company's European operations into it.
Seats and original mechanical parts
Development of car and other vehicle seats, seat reclining devices, slide rails, heavy-duty lifters, under floor storage devices, long-slide rails and accessories for RVs, rotating units, egress-ingress support systems, etc.
Safety improvement technologies
Development of seats with three-point seat belts, seats with side airbags, seats for smart air bags which can detect passengers, alleviation system against cervical injury systems, safety seats which protect the passengers when the vehicle is collided on the front/back/side
Study of easy-to-scrap seats and development of ultra-light seats made of new materials for Improvement in car fuel consumption, utilizing new structural technologies.
-Developed products used on vehicles for physically challenged
Developed a helper seat that is easily operated and makes its easier to get in and out of vehicles.
Standardized and interchangeable Next-generation, low-cost seats in order to shorten development period.
Development of 1) improved technologies for bonding forming seats 2)technologies for one-piece foam molding of headrest and armrest 3) technologies for labor-saving and automatic seat assembly 4) pattern making technology using CAD/CAM etc. Recently, the Company developed a multi-product production line which is capable of producing a wide variety of products in small lots.
Research on seats
Evaluation on seating comfort and in house-research on the design structure of seat construction.
Reduction of time needed for developing new products, and cost-cutting measures through CAE analysis.
Licensing of technology from other companies (as of March 2007)
Isringhausen GmbH & Co. KG
|- Licensing-in of
manufacturing technology and distributorship for suspension
- Sharing and licensing of manufacturing technology and sales know-how for seats (patented items are excluded)
for an indefinite period
(Subject to expiration with a prior notice of 6 months)
Licensing of technology to other companies (as of March 2007)
|Auto Parts Manufacturers Co., Sdn. Bhd.||Malaysia||- Licensing-out of
manufacturing know-how for agreed items
- Technological assistance on manufacturing equipment for agreed items (specific agreement is required) etc.
|Mar., 2000 - Feb., 2010|
|Henderson's Automotive Group||Australia||- Provision of technological
know-how and patent information with use rights
- Technological assistance on staff training
|Sep., 1986 - Aug. 2007|
|Summit Auto Seats Industry Co., Ltd.||Thailand||- Provision of technological
- Technological assistance on staff training
|Jun., 1997 - May 2007|
|in millions of JPY||FY2006||FY2005||FY2004|
For the fiscal year that ended March 2007, the Company invested to construct a new plant and improve its manufacturing facility in order to deal with new orders in line with a switch over to new vehicle models by its customers.
Planned capital investments
|Equipment to be installed||Estimated amount of investment (million JPY)||From||To|
|Industria de Asiento
Superior, S. A. de C. V.
|Manufacturing equipment for automotive seats||1,253||Jan. 2007||Dec. 2007|
|Manufacturing equipment for automotive seats||1,059||Apr. 2007||Mar. 2008|
| Setex Inc.
|Manufacturing equipment for automotive seats||772||Apr. 2007||Mar. 2008|
|Plant and manufacturing equipment for automotive seats||512||Apr. 2007||Mar. 2008|
|Constructing new plant
building at the head office plant:
Manufacturing equipment for automotive seats
|491||Jan. 2007||Dec. 2007|
|Setex Canada GP||Manufacturing equipment for automotive seats||419||Apr. 2007||Mar. 2008|
|Manufacturing equipment for automotive seats||349||Apr. 2007||Mar. 2008|
|Manufacturing equipment for automotive seats||181||Apr. 2007||Mar. 2008|