MITSUBA Corporation Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
| FY2009 | FY2008 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 175,522 | 209,973 | (16.4) | - |
| Operating income | 2,176 | (7,500) | - | - |
| Ordinary income | 1,874 | (9,736) | - | - |
| Current net income | (3,247) | (18,376) | - | -Current income was down year-on-year due to an extraordinary loss connected with reorganizing its operations, a loss in value of the Company's fixed assets, and a reversal of its deferred tax assets. |
| Transportation equipment related business | ||||
| Sales | 166,541 | 201,796 | (17.5) | -Due to the worldwide recession that started two years ago, the Company started the year on a low note. -In spite of this, automotive demand in Japan increased, thanks to green car tax break; and sales in China and other Asian countries were strong. -Sales largely dropped in North America and Europe. -On the whole, the Company's yearly sales declined. |
| Operating income | 1,816 | (7,809) | - | -The Company made effective cost reductions, mainly involving materials costs and labor costs. -Sales recovered in the latter half of the fiscal year. |
New Company
-The Company has decided to set up a production facility for its automotive front wiper systems in Brazil. Next month it will establish Mitsuba do Brasil Represntac ao Comercial Ltda. in Artur Nogueira, Sao Paulo as a preparatory company capitalized at R$12 million (approx. 600 million yen). Production is scheduled to begin in September 2011, targeting at R$23 million (1.1 billion yen) sales to be achieved in 2014. While Mitsuba has a production base in Brazil for two-wheeler products, this will be its first manufacturing base in South America for automotive products. (From an article in the Nikkan Jidosha Shimbun on Oct. 29, 2009)Business Restructuring
<Japan>-The Company, a transportation equipment supplier, announced that it will close the Kikugawa Plant, manufacturing small automotive motors at Kikugawa, Shizuoka Pref., Japan, by Sep. 30, 2009. It aims to address decreasing automobile production in Japan as well as to improve efficiency by reducing the fixed costs. At the Kikugawa Plant 99 employees have manufactured roof motors and seat motors, which will be produced at other plants in Gunma Pref. including the Tomioka Plant. The employees will also be relocated to other plants and offices in the prefecture. The cost of the plant closure and subsequent reorganization has been integrated in Mitsuba's business forecast for the fiscal year ending March 2010 and included in its overall deficit forecast of 2.6 billion yen. (From an article in the Nikkan Jidosha Shimbun on May 15, 2009)
-The Company, Gunma Pref., Japan, announced the merger of Sun-You Corp. and M-Tech Co., Ltd., its consolidated subsidiaries manufacturing automotive parts, and liquidation of Nagano Mitsuba Corp. Both Sun-You and M-Tech are based in Kiryu, Gunma Pref. Sun-You manufactures radiator cooling fans and M-Tech produces wire harnesses. The merger has been decided in order to improve the profitability and reinforce the business foundation. It will be effective as of April 1, 2010 with Sun-You as a surviving company. For Nagano Mitsuba Corp., a supplier of small-size relays and other parts, the business environment, including the market conditions, has been deteriorating. Mitsuba has decided to liquidate the subsidiary as of March 20, 2010 and its product items will be manufactured at one of Mitsuba's plants. (From an article in the Nikkan Jidosha Shimbun on Nov. 13, 2009)
<China>
-The Company announced on November 17 of liquidation of its Chinese subsidiary, Mitsuba Electric (Qingdao) Co., Ltd., in Shandong to properly adjust production capacity in line with demand. The subsidiary to be dissolved manufactures and sells fan motors for automobiles. Operations conducted at the Company will be handed over to the three remaining Mitsuba subsidiaries in China. The liquidation procedure is scheduled to complete in the middle of May 2010. (From an article in the Nikkan Jidosha Shimbun on Nov. 18, 2009)
<Philippines>
-The Company will integrate its three subsidiaries in the Philippines, which are producing components for electric devices and wiper products, into a single unit. Effective August 1, both Mitsuba Manufacturing Philippines Corporation (MMPC) and Mitsuba Manufacturing Batangas Corporation (MMBC) that are included in the Company's financial statements will be consolidated into Mitsuba Philippines Corporation (MPC), another consolidated subsidiary of the Group. (From an article in the Nikkan Jidosha Shimbun on July 8, 2009)
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
| FY2009 | FY2008 | FY2007 | |
| Overall | 557 | 729 | 1,136 |
| Transportation equipment related | 488 | 645 | 960 |
R&D Structure
| Facility | Location |
| Mitsuba R&D Center | Kiryu, Gunma Pref. |
| Yokohama R&D Base | Yokohama |
R&D Activities
-The Company's R&D activities are focused on new actuators based on core technologies such as motor technology and control technology. In addition, the Company is developing key, elemental technologies.-The Company is developing system products based on advanced control technology, new sensor technology, and drive principles.
-The Company is conducting joint research with universities, the National Institute for Materials Science (in Tsukuba), and other external organizations.
-The Company is working on reducing weight of motors installed on vehicles. By combination of a variety of technological applications like deletion of brushes, integration with control systems and adoption of high-performance permanent magnets, the electric parts supplier is poised to respond to requests from automakers for a 30 percent weight reduction compared with current products. To meet the urgent need for developing light weight components, it will, as the first step, try to integrate control units with motors that have been installed separately. Elimination of wire-harnesses will also contribute to cost reduction and downsizing of the product. Starting with "major" components, such as an electric power steering and a power sliding door, Mitsuba is continuing efforts to be switching to new generation products. (From an article in the Nikkan Jidosha Shimbun on Oct. 28, 2009)
R&D Achievements
| New products | |
| Body Systems (Field-of-vision systems) |
Front wiper systems, Rear wiper systems, Window washers and Door mirrors |
| Body Systems (Convenience and comfort systems) |
Horns, Power window motors, Seat motors, Roof motors and Power sliding door systems |
| Engine Power Train Systems (Engine support systems) |
Fan motors, fuel pump, Starter motors for two-wheel vehicles, Starter motors for four-wheel vehicles, AC generators, and Various types of controllers etc. |
| Engine Power Train Systems (Drive control systems) |
Power steering motors |
Technology Development Activities
-Development of next-generation products for various systems-Development of next-generation actuators
-Development of elemental technology to improve reliability
Contracts for Receiving Technical Support
(As of Mar. 31, 2010)
| Contractor Name |
Name of other party |
Contract details | Contract Period |
| The Company, Tokyo Electrica de Mexico, S.A. de C.V. |
Ichikoh Industries | Exercising the usage of patents and expertise in manufacturing automotive components in Mexico. | Between Dec., 1993 and the time the Company discontinues production of related products |
| The Company | Donnelly (USA) |
License agreement on rearview mirror systems fixed on the body. This includes turn signal lights. | Between Sep., 2005 and the time when the patent expires- - |
Contracts for Giving Technical Support
(As of Mar. 31, 2010)
| Partner | Agreement Details | Contract Period |
| Shihlin Electric & Engineering Corp.(Taiwan) | Production technology license and operational license for motorcycles / automobiles electric parts | From Aug. 1998 (automatic renewal) |
| Armstrong Auto Parts Sdn. Bhd. (Malaysia) |
Production technology license and operational license for motorcycles/automobiles electric parts | From May 1992 (automatic renewal) |
| Valeo (France) |
Production technology license and operational license for automobile starter motors | From Mar. 1989 (automatic renewal) |
| Kamco (Korea) |
Licensing of technology for wiper motors for automobiles | Feb. 2008 - Feb. 2010 |
| Kamco (Korea) |
Licensing of technology for power window motors for automobiles | May 2007 - May 2009 |
| Smith (South Africa) |
Licensing of manufacturing technology for wiper motors for automobiles | From Mar. 1979 (automatic renewal) |
| APM Auto (Malaysia) |
Licensing of technology for wiper motors and washers etc. for automobiles | Apr. 2007 - Apr. 2012 |
| Deloyd (Malaysia) |
Licensing of manufacturing technology for power window motors and door lock actuators for automobiles | From Oct. 2001 (automatic renewal) |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
| FY2009 | FY2008 | FY2007 | |
| Overall | 9,794 | 13,802 | 15,048 |
| Transportation equipment related | 9,454 | 13,451 | 14,866 |
-The Company and its subsidiaries both at home and abroad made capital investments in the transportation equipment sector, particularly in the following two sectors: automotive power window motors and automotive wiper motors. The Company's capital investment was 3,991 million yen.
-The Company did not dispose of any major equipment within this fiscal year.
Main Facility Construction Projects
| Name | Facility type | Planned investment amount (million JPY) |
Construction start month |
Planned completion month |
| The Company | ||||
| R&D Center | R&D facilities | 248 | April 2010 | March 2011 |
| Akagi Plant | Machinery to manufacture new products | 475 | April 2010 | March 2011 |
| Niisato Plant | Machinery to manufacture new products | 136 | April 2010 | March 2011 |
| Onishi Plant | Machinery to manufacture new products | 1,201 | April 2010 | March 2011 |
| Tone Plant | Machinery to manufacture new products | 145 | April 2010 | March 2011 |
| Tomioka Plant (Note) | Machinery to manufacture new products | 384 | April 2010 | March 2011 |
| Fukushima Plant (Note) | Machinery to manufacture new products | 73 | April 2010 | March 2011 |
| Niigata Plant | Machinery to manufacture new products | 95 | April 2010 | March 2011 |
| Domestic Subsidiaries | ||||
| Toyo Electric Manufacturing Co., Ltd. | Machinery to manufacture new products | 26 | March 2010 | Aug. 2010 |