Hitachi Metals, Ltd. Business Report FY2009
|(in millions of JPY)|
|FY2009||FY2008||Rate of change
|High-grade Metal Products and Materials|
|Electronics and IT Devices|
|High-grade Functional Components and Equipment|
Business OverviewHigh-grade Metal Products and Materials
-The business of automobile related materials has begun to show signs of recovery since late in the second quarter supported by growing demand mainly in China.
Electronics and IT Devices
-Demand for rare earth and ferrite used in automotive components has rebounded.
High-grade Functional Components and Equipment
<High-grade ductile iron products>
-Demand has recovered due to brisk sales of automobiles by customers in North America and Asia.
<Heat resistance casting parts>
-Demand has shown a recovery trend due to an impact of new product launches in Europe since the second quarter and an increase in sales of heavy duty vehicles in the U.S.
-In the domestic market, due to strong sales of vehicles in China by customers, demand has rebounded. In North America, brisk sales of automobiles, coupled with the start of mass production of new products, has brought a quick recovery in demand since the second quarter.
Recent Developments in Japan
-The Company will strengthen its marketing activities to promote use of die steel in producing plastic products. It will focus on sale of its HPM-Magic steel, which is positioned as the next generation die steel for making plastic parts. The die steel offers the optimal balance between the ability to apply mirror-like specular finishing to the formed products and die hardness, a significant requirement for die steel. The new, low-cost die steel allows the users to reduce procurement cost, while maintaining the same level of forming quality. Because the steel is easier to cut, it also trims down die production cost. For automotive application, the Company intends to market the HPM-Magic die steel, targeting suppliers of lamps and intake manifolds. (From an article in the Nikkan Jidosha Shimbun on Dec. 16, 2009)
>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)
Outlook for FY2010
|(in billions of JPY)|
|-High-grade Metal Products and Materials||223.0||194.0||29.0|
|-Electronics and IT Devices||130.0||102.9||27.1|
|-High-grade Functional Components and Equipment||148.0||141.6||6.4|
|(in millions of JPY)|
|High-grade Metal Products and Materials||4,099||4,620||3,881|
|Electronics and IT Devices||4,116||6,138||7,059|
|High-grade Functional Components and Equipment||2,411||2,325||2,343|
|% of sales||2.5%||2.2%||1.9%|
R&D Structure-The number of R&D staff is 735 as of the end of Mar. 31, 2010.
R&D Facility (Automotive Components Company)
|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 Activities-The Company and Hitachi Tool Engineering, Ltd. announced that they have developed a new diamond-like coating (DLC) technology (hard carbon membrane), which will expand application of the coating technique in automobiles. Compared with conventional DLC technology, which is used in engine sliding parts to reduce friction, the new DLC method offers more than 50 percent improvement in adhesion performance, which was achieved by employing a new base material and eliminating impure substances from the interface. The high-performance coating service and the new base material will be available from Oct. 2009. The two companies intend to introduce this technology to sliding parts of valve systems and fuel injection systems, for which application of DLC has been considered unsuitable. Possible new applications include valve lifters, locker arms, fuel injection nozzles and fuel supply pumps. (From an article in the Nikkan Jidosha Shimbun on Aug. 21, 2009)
-The Company will expedite its plan to launch small- and medium-size, lightweight aluminum wheels with a bore diameter of 17 inches or less. The Company, which has already developed a new aluminum wheel, which is 5 to 7 percent lighter than the conventional products, is poised to respond to growing needs for new, weight-saving technologies for compact vehicles. Aluminum wheels, which are used as standard on luxury vehicles and sport utility vehicles, are featured as standard only on a limited number of compact models powered by smaller engines. The Company aims to enhance the product appeal of its downsized aluminum wheels by offering both weight reduction and a superior design, which is comparable to those featured on upper-class models. (From an article in the Nikkan Jidosha Shimbun on Nov. 18, 2009)
Major Research and Development
|Electronics and IT Devices||-Smart key antennas|
|High-grade Functional Components and Equipment||-Expanded applications of heat resistance casting components to gasoline engines of small- and medium displacements.
-Upgrade and expansion of light-weight aluminum wheels with sophisticated designs
Technology Agreements (Licensed out)
(As of Mar. 31, 2010)
|Contract item||Contract details||Period|
Shin-Etsu Chemical Co., Ltd.
|Rare earth magnets||Granting of nonexclusive licenses on rare earth magnets||From March 24, 1988 (date of acquisition of the right to basic invention) to the date on which the right of patent application granted is determined.|
|Rare earth magnets||Granting of nonexclusive licenses on rare earth magnets||From August 10, 2007 to the expiration date of patent covered by the contract.|
Mutual Collaboration Technology Agreement
(As of Mar. 31, 2010)
|Contract item||Contract content||Period|
|Rare earth magnets||Exchange of license on rare earth magnets.||From August 22, 2000 to the expiration date of patent covered by the contract.|
|(in millions of JPY)|
|High-grade Metal Products and Materials||4,964||20,128||22,052|
|Electronics and IT Devices||7,301||12,743||13,350|
|High-grade Functional Components and Equipment||3,440||8,707||10,704|
|Service and Others||633||1,993||3,079|
Capital Investment Projects
|Segment||Objective of the investment|
|High-grade Metal Products and Materials||Greater efficiency in logistics of rolling products and in materials of electronic functional parts|
|Electronics and IT Devices||Reorganization of offices and renewal of equipment for business reconstruction|
|High-grade Functional Components and Equipment||Quick launching of new auto parts|
Planned Investment Expenditure
|Segment||Planned amount of investment||Objective of the investment (in millions of JPY)|
|High-grade Metal Products and Materials||9,900||Installing new facilities to produce new products; improving the productivity of existing production lines|
|Electronics and IT Devices||7,100||Same as above|
|High-grade Functional Components and Equipment||4,900||Same as above|
|Service and Others||1,100||-|