Hitachi Metals, Ltd. Business report FY2007
Business Highlights
Financial overview | (in millions of JPY) |
FY2007 | FY2006 | Rate of change(%) | Factors | |
Overall | ||||
Sales | 701,075 | 646,311 | 8.5 | -Demand in the automotive and IT industries in particular remained strong. |
Operating income | 59,698 | 54,722 | 9.1 | -Sales increased and efforts to cut costs and expenses were successful. |
Ordinary income | 54,448 | 51,630 | 5.5 | - |
Net income | 27,034 | 22,062 | 22.5 | - |
High-grade Metal Products and Materials | ||||
Sales | 292,370 | 273,567 | 6.9 | -Demand for die and tool metals in the automotive industry, increased in part because of the Company's new product launches. Exports remained strong. |
Operating income | 28,664 | 24,302 | 17.9 | |
Electronics and IT Devices | ||||
Sales | 191,907 | 169,321 | 13.3 | -Sales increased, largely thanks to solid demand for rare earth magnets for hybrid vehicles and electric power steering. |
Operating income | 20,277 | 18,069 | 12.2 | |
High-grade Functional Components and Equipment | ||||
Sales | 222,453 | 210,487 | 5.7 | -Domestic demand for high-toughness, ductile cast iron increased mainly for application to trucks. Its applications outside Japan also grew. Applications of large-diameter aluminum wheels increased, resulting in strong demand both in and outside Japan. |
Operating income | 16,277 | 14,073 | 15.7 |
Business Restructuring
-As of April 1, 2007, the Company acquired its consolidated subsidiary, Neomax Co., Ltd. , which is involved in the manufacture of magnetic materials.
-In September 2007, the Company dissolved Hercunite Foundry Technology Ltd., a subsidiary of its UK based subsidiary, Hitachi Metals Europe GmbH. Hercunite Foundry was a manufacturer of heat-resistant casting components to be used in controlling the temperature range of gas emissions mainly from diesel engines. The Company decided to concentrate on heat-resistant casting component manufacturing operations at its Kyushu Works. (From a press release on Sep. 20, 2007)
R&D
R&D
Structure
-The number of R&D staff is 829 as of the end of Mar. 31, 2008.
R&D Facility (Automotive Components Company)
Major Research and Development (FY2007)
Technology supply agreement (As of Mar. 2008)
-The number of R&D staff is 829 as of the end of Mar. 31, 2008.
R&D Facility (Automotive Components Company)
Facility | Location | Outlines |
Casting Technology Research Laboratory |
Tochigi Pref. |
Laboratory to research and develop products in order to meet the growing needs from the globalizing auto industry for more eco-friendly, lighter products and quicker product deliveries. It develops a wide variety of leading edge products including formed and fabricated materials to component units. |
R&D Expenses | (in millions of JPY) |
FY2007 | FY2006 | FY2005 | |
High-grade Metal Products and Materials | 3,881 | 3,526 | 3,461 |
Electronics and IT Devices | 7,059 | 7,079 | 5,955 |
High-grade Functional Components and Equipment | 2,343 | 2,360 | 2,621 |
Others | - | - | 17 |
Group | 13,283 | 12,965 | 12,054 |
% of sales | 1.9% | 2.0% | 2.0% |
Major Research and Development (FY2007)
Division | Development |
Electronics and IT Devices | -Small 3-axis accelerometer sensors -Keyless entry antennas |
High-grade Functional Components and Equipment | -Expansion of the Company's product lineup of
casting products for automotive diesel and high-efficiency
gasoline engines -Development of new diesel particulate filters compatible with new long-term regulations -Expansion of the Company's product lineup of large-diameter, fashionable aluminum wheels |
Technology supply agreement (As of Mar. 2008)
Company (Location) |
Contract item | Contract content | Period |
Mahindra Hinoday Industries, Ltd. (India) |
Automobile casting | To supply manufacturing technology for automobile casting | From June 26, 1996 to June 25, 2009 |
Investment Activities
Capital Expenditure | ( in millions of JPY ) |
Segment | FY2007 | FY2006 | FY2005 |
High-grade Metal Products and Materials | 22,052 | 14,101 | 12,368 |
Electronics and IT Devices | 13,350 | 13,773 | 9,609 |
High-grade Functional Components and Equipment | 10,704 | 7,384 | 6,971 |
Service and Others | 3,079 | 1,234 | 302 |
Consolidated elimination | 142 | 295 | 390 |
Group | 49,327 | 36,787 | 29,640 |
Capital investment projects in FY2007
Segment | Objective of the investment |
High-grade Metal Products and Materials | Continuous rationalization of expansion of capacity to produce tool metals. Renewal of steelmaking facilities and introduction of large-scale forging machinery. |
Electronics and IT Devices | Rationalization of expansion of capacity to produce
rare earth magnets to meet expanding demand |
High-grade Functional Components and Equipment | Expansion of capacity to produce heat-resistant casting components. Rational expansion to produce forged iron products. |
Planned Investment Expenditure (FY2008) | ( in million JPY ) |
Segment | Planned amount of investment | Objective of the investment |
High-grade Metal Products and Materials | 18,600 | Establishment of rolling facilities outside Japan |
Electronics and IT Devices | 14,000 | Large-scale production augmentation of amorphous metal materials |
High-grade Functional Components and Equipment | 9,800 | Continuous expansion of capacity to produce heat-resistant casting components. Rational expansion of capacity to produce large-diameter automotive aluminum wheels to meet growing needs. |
Service and Others | 600 | - |
Group | 43,000 | - |