NSK Ltd. Business Report FY2010
|(in millions of JPY)|
|FY2010||FY2009||Rate of Change (%)||Factors|
|Operating income||43,524||11,305||285.0||-The profitability of products produced for export declined due to negative currency translation based on the appreciation of the yen.
-Sales increased as a result of more effective capacity utilization, improved productivity, and reduced procurement costs, in addition to increased sales and greater production volume.
|Current net income||26,110||4,765||448.0||
-The Company lost 333 million yen from incurring a loss on investments in marketable securities.-Current net income increased after deducting taxes and minority interest.
|Automotive Business Division|
|Sales||424,157||366,463||15.7||-Sales rose due to the markets in developing countries and the eco-car markets in developed countries growing, and due to the economic recovery worldwide.
-In addition, sales at the Company were mainly up due to increased sales volumes of hub-unit bearings and power-steering systems.
-Higher costs were recorded because of negative currency translation due to the appreciating value of the yen, and the rise in the costs of goods.
Business Restructuring-The Company announced the planned merger/acquisition of its wholly-owned subsidiary NSK Fukushima Co., Ltd. as of July 1, 2010. NSK Fukushima, based in Fukushima Prefecture, engages in the manufacturing and sales of various types of bearings. (From a press release on May 21, 2010)
-The Company and Toshiba Corporation announced on October 26 that the two companies formed a joint-venture company to develop electric power steering systems (EPSs) for automobiles and inaugurated its operations. The new company, ADTech Corporation, was established in Shingawa Ward, Tokyo on September 30. It has a registered capital of 200 million yen, 51 percent of which was invested by the company. ADTech will work on developing next generation EPSs by integrating Toshiba's advanced electronics and software technologies into NSK's expertise in automotive steering technologies. The joint venture will also focus on developing optimized mechanisms for hybrid and electric vehicles. ADTech employs some 60 workers.
(From an article in the Nikkan Jidosha Shimbun on October. 27, 2010)
|(in millions of JPY)|
|Automotive Business Division||6,497
R&D Structure-In order to respond quickly and flexibly to the dynamically changing global business environment, the Company organized its R&D structure based on 13 technical centers worldwide, positioning its centers in Japan as the core centers for R&D activities. In all, the Company has five centers in Japan, two in The Americas, three in Europe, and three in Asia.
Major AchievementsTaperd roller bearings
The Company announced on October 6 that it has developed a new technology to reduce by as much as 20 percent the friction resistance of a tapered roller bearing, a component used in automotive transmissions and differential gears. The Company achieved this breakthrough by using a plastic roller retainer instead of a conventionally used iron retainer to optimize the product design. The improvement resulted in cutting down on oil agitation resistance of a rotating bearing, which raises operational efficiency. In addition, the product life cycle was more than doubled, as the new bearing is more resistant to burn-in. Using plastic was considered something difficult to do when it comes to components used in high-rotation bearings, which require excellent heat resistance and a high level of intensity. The Company's engineers have overcome this problem by developing a new retainer made from its proprietary plastic material. The company aims to generate 1 billion yen per year from sales of the new tapered roller bearings by 2015.
(From an article in the Nikkan Jidosha Shimbun on October. 7, 2010)
Hub unit bearing
-The Company announced on September 29 that it has developed a new technology to extend 1.7 times the product life of a hub unit bearing, a key component to support the axle of a vehicle, by improving its water resistance performance along with use of a special type grease. The technology is applied to hub unit bearings on vehicles used in new emerging countries and other areas where vehicles have to run under poor road conditions and frequently on water-covered roads. The grease with a special ingredient composition has two functions to prevent water in oil from dispersing into minuscule particles and also to form a protective membrane on the metallic surface inside the bearing. This mechanism makes it possible to secure lubricity vulnerable to water infusion and also to prevent decay in performance of the bearing even after continuous driving on roads submerged in water. The Company aims to generate 2 billion yen in sales of hub bearings processed with the special grease.
(From an article in the Nikkan Jidosha Shimbun on September. 30, 2010)
-The Company announced it had developed new technology to downsize or improve efficiency of planetary gears embedded in such systems as an automatic transmission. The technology is capable of enhancing durability of a pinion shaft, which is a key component of planetary gears for responding to high burden and high-speed rotation required for improving fuel efficiency. Its life has been made 2.5 times longer by adoption of original materials and specific heat treatment process. If the product life is supposed equal to that of conventional products, its size can be reduced by 20 percent and a transmission can be downsized. Reduction in oil flow that is indispensable for cooling and friction prevention also contributes to fuel saving. The product has already been supplied to some of Japanese automakers since this spring. By presenting the solution to in-wheel motors on hybrid and electric vehicles that use planetary gears for power transmission and distribution, the company's intends to explore new business opportunities with the aim of achieving 2 billion yen in sales in 2015.
(From an article in the Nikkan Jidosha Shimbun on August. 24, 2010)
New ball bearing with a retainer plate
-The Company announced on July 20 that it has developed a new ball bearing with a retainer plate, which contributes to making compact, lightweight, and easy-to-assemble manual transmission systems. The ball bearing is designed to support an input shaft and output shaft. The unit integrated with a retainer plate reduces the space required for installation. When used on the edge of the shaft, the new product can cut down on the overall length of the transmission system by 4 millimeters, while reducing its weight by 200 to 300 grams. The bearing also allows easy positioning of the bolt hole, improving assembly efficiency and productivity of the transmissions. The ball bearing with a retainer plate is also suitable for use in a dual clutch transmission, which is based on the manual transmission technology. The company is aiming to generate 1 billion yen in sales of the new bearing in 2015.
(From an article in the Nikkan Jidosha Shimbun on July. 21, 2010)
-The company announced that it has developed a new technology, which will enable it to manufacture smaller and more durable thrust needle bearings used in automatic transmissions and hybrid power units. The company achieved this breakthrough by developing special steel with improved stamping processability and introducing a new heat treatment method for the steel. Shifting to the new technology can triple the product life of a bearing of an equal size. In order to produce a bearing with the same level of product life cycle, a 20 percent downsizing can be made possible. The Company will initially propose this technology as a solution to make smaller and lighter torque converter bearings used in high load conditions, aiming to generate 1 billion yen in sales by 2015.
(From an article in the Nikkan Jidosha Shimbun on April. 15, 2010)
|(in millions of JPY)|
|Automotive Business Division||21,099
Automotive Business Division
||Targets of Investments
Small-sized Tapered Roller Bearings
||Power -Steering Systems|
-The Company said on December 14 that it will increase its capacity to produce electric power steering (EPS) systems outside Japan. The Company's president Norio Otsuka said the company will launch operations at its new plant in Thailand, while establishing additional EPS plants in China and India by fiscal year 2012. In its mid-term business plan, the company is aiming to double sales of EPSs from the level in fiscal year 2008 to 140 billion yen by fiscal year 2012. Otsuka said, "We have already won enough programs to achieve our target for 2012", indicating its intention to boost its production capacity to ensure greater supply capability.
(From an article in the Nikkan Jidosha Shimbun on December. 15, 2010)
Planned Capital Investment for Fiscal Year Ending in March 2012
(In 100 million yen)
(ended March 2010)
(ended March 2011)
|FY2011 (ending March 2010
Major New Facilities for the Automotive Parts Related Business
(As of Mar. 31, 201１)
|Equipment to be installed||Planned investment (million in JPY)||Start||Complete||Purpose|
|NSK Ltd. Ohtsu Plant
(Shiga Pref., Japan)
|Manufacturing facilities for automotive bearings and ball bearings for general use||1,115||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
NSK Ltd. Ishibe Plant
(Shiga Pref., Japan)
|Manufacturing facilities for automotive bearings||2,430||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|NSK Ltd. Saitama Plant
(Saitama Pref., Japan)
|Manufacturing facilities for automotive bearings||2,277||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|NSK Steering Systems
(Gunma Pref., Japan)
|Manufacturing facilities for steering systems||6,374||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|NSK Needle Bearing Co., Ltd.
(Gunma Pref., Japan)
|Manufacturing facilities for needle bearings||1,751||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|Manufacturing facilities for automotive bearings||2,169||April 2010||March 2012||Reorganizing production and streamlining operations|
|NSK Steeling Systems America. Inc.
|Manufacturing facilities for steering systems||1,999||April 2010||March 2012||Increasing production capacity|
|NSK Brazil Ltda.
|Manufacturing facilities for automotive bearings and ball bearings for general use||853||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|NSK Bearings Europe Ltd.
|Manufacturing facilities for automotive bearings and ball bearings for general use||929||April 2010||March 2012||Upgrading production infrastructure and streamlining operations|
|NSK Steering Systems Europe (Polska) Sp.Zo.o
|Manufacturing facilities for steering systems||1,616||April 2010||March 2012||Increasing production capacity|
|NSK Bearings Manufacturing (Thailand) Co., Ltd.
|Manufacturing facilities for automotive bearings||651||April 2010||March 2012||Increasing production capacity and streamlining operations|
|Siam NSK Steering Systems Co., Ltd.
|Manufacturing facilities for steering systems||2,607||April 2010||March 2012||Increasing production capacity|
|Kunshan NSK Co., Ltd.
|Manufacturing facilities for automotive bearings and ball bearings for general use||5，049||April 2010||March 2012||Increasing production capacity and streamlining operations|
|Changshu NSK Needle Bearing Co., Ltd.
|Manufacturing facilities for needle bearings||1,337||April 2010||March 2012||Increasing production capacity and streamlining operations|
|Zhangjiagang NSK Precision Machinery Co., Ltd.
|Manufacturing facilities for automotive bearings and ball bearings for general use||1,886||
|March 2012||Increasing production capacity and streamlining operations|
|Suzhou NSK Bearings Co., Ltd.
|Manufacturing facilities for automotive bearings||467||April 2010||March 2012||Increasing production capacity and streamlining operations|
|NSK Steering Systems Dongguan Co., Ltd.
|Manufacturing facilities for steering systems||674||April 2010||March 2012||Increasing production capacity|
|NSK-Wanda Electric Power Assisted Steering Systems Co.,Ltd.
|Manufacturing facilities for steering systems||1,547||
|March 2012||Increasing production capacity|
|NSK Korea Co., Ltd.
|Manufacturing facilities for automotive bearings||1，705||April 2010||March 2012||Reorganizing production and streamlining operations|
|NSK-ABC Bearings Ltd.
|Manufacturing facilities for automotive bearings||1，782||April 2010||March 2012||Increasing capacity|
|Rane NSK Steering Systems Ltd.
|Manufacturing facilities for steering systems||508||April 2010||March 2012||Increasing capacity|