Taiho Kogyo Co., Ltd Business Report FY ended Mar. 2018
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Remarks | |
| Overall | ||||
| Sales | 114,665 | 108,953 | 1.6 | -Sales of bearings and systems increased. |
| Operating income | 6,800 | 6,357 | 7.0 | - |
| Ordinary income | 6,785 | 6,265 | 8.3 | - |
| Profit for the year attributable to owners of the parent | 4,254 | 4,454 | (4.5) | - |
| Automotive Component Business | ||||
| Sales | 95,262 | 89,400 | 5.4 | - |
| Operating income | 10,281 | 9,750 | 5.4 | - |
Factors
1) Automotive Parts Business
-Bearings: Significant increase in sales of bearings that meet customer needs.
-Systems: Besides sales of vacuum pumps increasing in Japan and Thailand, sales of EGRs and other products increased.
-Die-cast products: Sales fell due to heightened competition.
-Gaskets: Local production of gaskets in Thailand and China increased.
Outlook for FY ending Mar. 31, 2019 |
(in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ending Mar. 31, 2018 (Result) |
Rate of Change (%) |
|
| Sales | 115,000 | 114,665 | 0.3 |
| Operating income | 5,800 | 6,800 | (14.7) |
| Ordinary income | 5,700 | 6,785 | (16.0) |
| Profit for the year attributable to owners of the parent | 4,000 | 4,254 | (6.0) |
-While higher sales are forecast, income is predicted to decrease because of negative currency translation.
| Sales by Products | (in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ending Mar. 31, 2018 (Result) |
Rate of Change (%) |
|
| Bearings | 47,500 | 48,200 | (1.5) |
| System Products | 17,800 | 16,612 | 7.2 |
| Die Castings | 10,000 | 9,619 | 4.0 |
| Gaskets | 15,700 | 15,502 | 1.3 |
| Facilities/Dies | 18,600 | 19,186 | (3.1) |
-The Company predicts that in the fiscal year that ends in March 2019, sales of bearings will be JPY 47.5 billion yen and will account for 41.4% of companywide sales.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
New Facilities
-The estimated amount of capital spending within the corporate group in the fiscal year that ends in March 2018 is JPY 12,000 million yen. It will be spent mainly for the following.
| Plant | Facilities to be built | Planned investment (in million JPY) |
Objective |
| Taiho Kogyo Co., Ltd. Headquarters and Headquarters plant (Aichi Pref., Japan) |
Production facilities to manufacture die casting products, etc. | 1,486 | Switch over to new products; expand, and increase production capacity |
| Taiho Kogyo Co., Ltd. Hosoya plant (Aichi Pref., Japan) |
Production facilities to manufacture bearings, etc. | 2,600 | Switch over to new products; expand, and increase production capacity |
| Taiho Kogyo Co., Ltd. Shinohara plant (Aichi Pref., Japan) |
Production facilities to manufacture assembly products | 1,277 | Switch over to new products; expand and increase production capacity |
| Taiho Kogyo Co., Ltd. Kyushu plant (Kagoshima Pref., Japan) |
Production facilities to manufacture bearings, etc. | 720 | Switch over to new products; expand and increase production capacity |
| Taiho Kogyo Co., Ltd. Koukai plant (Aichi Pref., Japan) |
Production facilities to manufacture bearings, etc. | 123 | Switch over to new products; expand and increase production capacity |
| Taiho Seiki Co., Ltd. Headquarters and Headquarters plant (Aichi Pref., Japan) |
Production facilities to manufacture bearings, etc. | 516 | Expand and increase production capacity; streamline operations |
| TET Co., Ltd. Kasugai plant (Aichi Pref., Japan) |
Processing facilities | 54 | Switch over to new products; expand and increase production capacity |
| Taiho Gifu Co., Ltd. Headquarters and Headquarters plant (Gifu Pref., Japan) |
Production facilities to manufacture bearings, etc. | 500 | Expand and increase production capacity; streamline operations |
| Nippon Gasket Co., Ltd. Shiga Plant (Shiga Pref., Japan) |
Production facilities to manufacture bearings, etc. | 1,838 | Switch over to new products; expand and increase production capacity |
| Taiho Corporation of America Headquarters and Headquarters plant (Ohio, USA) |
Production facilities to manufacture bearings, etc. |
445 |
Switch over to new products; expand and increase production capacity |
| PT. Taiho Nusantara Headquarters and Headquarters plant (West Java, Indonesia) |
Production facilities to manufacture bearings, etc. | 494 | Expand and increase production capacity |
| Taiho Corporation of Europe Headquarters and Headquarters plant (Ujhartyan, Hungary) |
Production facilities to manufacture bearings, etc. | 109 | Expand and increase production capacity; streamline operations |
| Taiho Corporation of Korea Headquarters and Headquarters plant (Daegu, Korea) |
Production facilities to manufacture bearings, etc. | 71 | Expand and increase production capacity |
| Taiho Kogyo Corporation of Yantai Headquarters and Headquarters plant (Yantai, China) |
Production facilities to manufacture bearings, etc. | 1,512 | Switch over to new products |
| Hengye Bearing Materials Co.,Ltd (Changzhou) Headquarters and Headquarters plant (Changzhou, China) |
Production facilities to manufacture bearings, etc. | 204 | Expand and increase production capacity; streamline operations |
| Taiho Corporation of Thailand Headquarters office and plant （Pathum Thani Prov., Thailand） |
Production facilities to manufacture bearings, etc. | 51 | Expand and increase production capacity |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 10,303 | 6,904 | 6,548 |
| Automotive Component Business | 9,871 | 6,559 | 6,266 |
Automotive Component Business
-The Company will make capital investments to replace old products with new ones, increase production capacity, and maintain and renew facilities. The details are as follows.
- Taiyo Gifu, Co., Ltd., a consolidated subsidiary in Japan, will make capital improvements to production facilities, in order to replace existing bearings with new ones and increase production capacity.
- -The Company spent on capital investments at Taiho Kogyo Corporation of Yantai to add bearing-production facilities and equipment in order to switch over to manufacturing new products and increase production capacity.
-The Comapny will introduce an engine bearing production line about one-third shorter than a standard line by the end of 2018. The construction of the new line requires about half the capital investment needed to make a standard line. It is capable of producing multiple products simultaneously and reduces the time required for set-up, which hampered the improvement of production efficiency, by 60%. The line will initially be introduced to the company's plant in Japan. Once the production volume is stabilized, the line will be introduced to China and Europe, the company's profit centers. The company intends to secure competitiveness comparable to that of local bearing manufacturers in China. The new production line is currently undergoing trial operation for mass production. Upon certification by the company's bearings customers, the line will be introduced to Japan first and then to overseas locations to supply highly competitive engine bearings on a global scale. (From an article in the Nikkan Jidosha Shimbun on February 26, 2018)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 3,905 | 3,549 | 3,398 |
| Automotive Component Business | 3,445 | 3,176 | 3,067 |
R&D Activities
-The Company will accelerate the development of lubrication system components. Under a new joint project with a Japanese automaker, the company will co-develop a cam-shower that employs optimized lubricant passage design and enables the feeding of lubricant equally around an entire camshaft. The new cam-shower will help decrease lubricant consumption and reduce the extent oil pumps that feed lubricant are operated. As a result, the new product is expected to offer a roughly 1% improvement in fuel efficiency compared to conventional products. The Company has determined that the demand for technology that improves internal combustion engine fuel efficiency is still strong despite the advancement of development of vehicle electrification technology. To address these needs, the company will expand business activities from its mainstay bearings to include lubrication systems. (From an article in the Nikkan Jidosha Shimbun on June 20, 2017)
Bearings
-The Company’s plastic coated bearings are being used in hybrid engines and engines with stop/start function. They effectively respond to frequent starts/stops and help improve fuel efficiency.
-The development and production of resin-coated crankshafts that reduce friction.
-The development and production of engine bearings compatible with new grooved engines that control the volume of engine oil.
-The Company is in the process of developing high-performance, new aluminum and carbon bearing materials for bushes.
-The development and production of special bearings for compressors used in car air-conditioning systems, such as high-performance, lightweight, low-cost swash plates.
Systems
-Production was launched of switch valves, which are needed to switch on/off turbocharger high temperature exhaust gas emissions at multiple intervals. They are based on EGR valves.
-The Company will launch production of actuators for waste-gate valves, using a new design that will reduce the number of parts.
Die-cast products
-The delivery of high-precision, low-cost products developed through CAE technology, which optimize the flow of cooling and heating, and which are thinly and precisely die-cast.
-In newly anticipating the end to internal-combustion engines, the Company is expanding the scope of products for fuel-cell vehicles and hybrid vehicles.