Taiho Kogyo Business Report FY2008
Business Highlights
Financial Overview | (In million yen) |
- | FY2008 | FY2007 | Rate of Change | Factors |
Overall | ||||
Sales | 90,152 | 108,883 | (17.2) | Sales decreased due to sluggish auto sales worldwide, mainly in North America. |
Operating income | (1,223) | 5,756 | - | Income dropped due to a significant decline in sales. |
Ordinary income | 1,393 | 5,620 | - | |
Net income | 1,812 | 3,695 | - | - |
Automotive Component Business | ||||
Sales | 71,248 | 87,653 | (18.7) | - |
Operating income | 2,421 | 8,571 | (71.8) | - |
Nippon Gasket Consolidates Functions in New Headquarters
In August 2008, Nippon Gasket Co. Ltd., the Company's subsidiary, moved its headquarters to Toyota, Aichi Prefecture, from Higashi Osaka, Osaka Prefecture, in order to consolidate all its planning, management and marketing departments under one roof at its new headquarters. These departments used to be located both in Osaka and Toyota. The headquarters is also geographically closer to its No.1 client, Toyota Motor Corporation, and to its parent company. Nippon Gasket intends to improve its work efficiency by undertaking this move.
Business Results forecast | (in millions JPY) |
- | FY2009 | FY2008 (actual) | Rate of change |
Sales | 68,000 | 90,152 | (24.6%) |
Operating income | (3,200) | (1,223) | - |
Ordinary income | (2,700) | (1,393) | - |
Net income | (1,700) | (1,812) | - |
Sales forecast by business | (in millions JPY) |
- | FY2009 | FY2008 (actual) | Rate of change |
Bearings | 23,840 | 30,422 | (21.6%) |
Die-casting | 12,570 | 15,051 | (16.5%) |
Gaskets | 8,460 | 10,063 | (15.9%) |
ASSY products | 12,820 | 15,710 | (18.4%) |
Equipment | 10,140 | 18,686 | (45.8%) |
Sales forecast by customer | (in millions JPY) |
- | FY2009 | FY2008 (actual) | Rate of change |
Parts for Toyota | 34,507 | 39,009 | (11.5%) |
Equipment for Toyota | 8,726 | 15,485 | (43.6%) |
Toyota group | 6,811 | 10,271 | (33.7%) |
Others | 17,956 | 25,387 | (27.3%) |
R&D
-The Company set up its R&D structure so that it can address diverse issues under a consolidated framework consisting of several divisions such as the basic research division dealing with tripology (friction/wear/lubrication technology) and other themes; the product development division; and the production technology development division, all working at the Main Technology Building.
-In addition to the above, the Company also has a friction technology research center, an engine experiment center, and a production technology development center.
R&D Expenditure | (In million yen) |
FY2008 | FY2007 | FY2006 | |
Overall | 1,465 | 1,501 | 1,542 |
Automotive parts business | 1,428 | 1,408 | 1,440 |
R&D activities in recent years (Automotive Parts Business)
1. Sliding bearings:
-The Company was successful in producing engine bearings, which are compatible with high performance engines; special bearings, which are used in compressors; and also various other bearings.
-In the area of engine bearings, the Company developed and launched both copper and aluminum bearings with overlays that are both completely lead-free.
-The company successfully developed overlay materials using lead-free, solid lubricants to meet recent needs for enhanced engine performance. These materials are being used on major vehicle models in and outside Japan. The Company was successful in conducting sales activities that increased its global presence, as it won new supply agreements from overseas makers with which it had never transacted business before.
-The Company developed overlay materials which use lead-free solid lubricant.
-The Company developed soft metal overlay materials.
-The Company's lead-free bearings are now used in hybrid engines.
-The Company completed a line up of lead-free bushes and applied them to
transmissions and other products.
2.
Die-casting products
-The Company developed and commercialized sleeves
for oil control valves. It is
currently supplying them to manufacturers both at home and
abroad.
-The Company developed and commercialized cam housings and further developed
highly-functional products such as differential gear carriers.
3. Electronics assembly business
-The Company developed and commercialized coils and core assemblies for
solenoid valves, parts for continuous variable valve timing systems, and
EGR valves for small-diesel and large-diesel engines.
-The Company successfully developed electronic control EGR valves
that offer precise control and a large volume of flow. These were designed
in compliance with new long-term exhaust emission regulations for commercial
vehicles that started from October 2005.
-The Company developed and commercialized cam housings and is currently conducting R&D activities to expand their application to more sophisticated parts such as differential carriers.
4. Balance weight business
-The Company commercialized lead-free balance weights. It was successful in developing lead-free, clip-on balance weights
like those being used in overseas markets.
-The Company The Company also started commercial
production of stick-on balance weights.
5. Gasket business
-The Company's subsidiary, Nippon Gasket, enhanced
its development capabilities in the area of metal-head gaskets.
Investment Activities
Capital Expenditure | (In million yen) |
FY2008 | FY2007 | FY2006 | |
Overall | 7,193 | 9,645 | 9,240 |
Automotive Parts Business | 7,468 | 9,066 | 8,674 |
Automotive Parts Business (FY2008)
-In this business segment, capital investment focused on expanding production capacity and maintaining and updating manufacturing facilities.
-In Japan, the Company's subsidiary, Taiho Gifu Co., Ltd., invested in manufacturing facilities that produce bearing products.
-At Taiho Kogyo Corporation of Yantai, the Company expanded the facilities producing bearings. NHK Gasket (Thailand) Co., Ltd. of Thailand obtained a site for constructing a new plant.
New facilities (Automotive Parts Business)
The Company's Group plans to invest 2.7 billion yen in FY2009, which ends on March 31, 2009. The breakdown of major investments is as follows.
Plant | Facilities to be built | Planned investment (million JPY) | Objective |
The Company | |||
Headquarters and Headquarters plant (Aichi Pref., Japan) |
Production facilities to manufacture die casting products | 646 | Maintenance and renewal |
Hosoya plant (Aichi Pref., Japan) |
Production facilities to manufacture bearings, etc. | 220 |
New products |
Earthquake reinforcement work on buildings | 115 | Basic investment | |
Shinohara plant (Aichi Pref., Japan) |
Precision mold facilities | 142 | Maintenance and renewal |
Kyushu plant (Kagoshima Pref., Japan |
Production facilities to manufacture bearings, etc. | 93 | New products |
Koukai plant (Aichi Pref., Japan) |
Production facilities to manufacture bearings, etc. | 220 | New products |
Toki plant (Aichi Pref., Japan) |
Production facilities to manufacture assembly products | 63 | Maintenance and renewal |
Subsidiaries | |||
Taiho Seiki Co., Ltd. Headquarters and Headquarters plant (Aichi Pref., Japan) |
facilities where design and development activities can be conducted, and facilities for manufacturing automotive suspension components | 150 | Expansion, increasing production capacity, maintenance and renewal |
Taiho Gifu Co., Ltd. Headquarters and Headquarters plant (Gifu Pref., Japan) |
Production facilities to manufacture die casting products | 138 | Expansion, increasing production capacity, maintenance and renewal |
Nippon Gasket Co., Ltd. Headquarters (Aichi Pref., Japan) |
Renovation of headquarters building | 60 | Basic investment |
Nippon Gasket Co., Ltd. Shiga Plant (Shiga Pref., Japan) |
Production facilities to manufacture gasket products | 247 | R&D, maintenance and renewal |
Renovations of building exteriors | 14 | Basic investment | |
Taiho Corporation of America Headquarters and Headquarters plant (Ohio, USA) |
Production facilities to manufacture bearings, etc. | 145 | New products, maintenance and renewal |
PT. Taiho Nusantara Headquarters and Headquarters plant (Karawang, Indonesia) |
Production facilities to manufacture bearings, etc. | 117 | Expansion, increasing production capacity |
Taiho Corporation of Europe Headquarters and Headquarters plant (Ujhartyan, Hungary) |
Production facilities to manufacture bearings, etc. | 57 | Maintenance and renewal |
Taiho Corporation of Korea Headquarters and Headquarters plant (Daegu, Korea) |
Production facilities to manufacture bearings, etc. | 10 | Maintenance and renewal |
Taiho Kogyo Corporation of Yantai Headquarters and Headquarters plant (Yantai, China) |
Production facilities to manufacture bearings; and installation of plating lines | 238 | Expansion, increasing production capacity, maintenance and renewal |
Taiho Manufacturing of Tennessee LLC (Tennessee, USA)) |
Production facilities to manufacture gasket products | 44 | New products |
Nippon Gasket (Thailand) Co., Ltd. (Samut Prakan, Thailand) |
Production facilities to manufacture gasket products | 37 | Expansion, increasing production capacity |