NIFCO Inc. Business Report FY2008
Business Highlights
| Financial Overview | (in millions of JPY) |
| FY2008 | FY2007 | Rate of change (%) |
Main factors | |
| Overall | ||||
| Sales | 122,518 | 141,646 | (13.5) | -Though the Company achieved relatively good performance in the first half of the year, sales and income decreased year-on-year as a result of a 50% decrease in production volume by Japanese automakers. |
| Operating income | 7,237 | 14,649 | (50.6) | |
| Ordinary income | 6,906 | 15,115 | (54.3) | |
| Current net income | 3,934 | 9,949 | (60.5) | |
| Industrial plastic parts and components | ||||
| Sales | 101,469 | 119,116 | (14.8) | -In Japan: Sales and income decreased as a result of a significant decrease in automotive production volume in Japan. Outside Japan: Though sales and income increased in China, overall sales and income decreased as a result of a significant decrease in production volume by Japanese automakers outside Japan. |
| Operating income | 9,479 | 16,503 | (42.6) | |
Recent Developments outside Japan
<Poland>
-The Company decided to invest further in Nifco Poland Sp. z o. o., its consolidated subsidiary in Poland. The Company will increase the capital in the Polish subsidiary, fully committing an additional 30 million zlotys (approximately 1.33 billion yen) in July 2008. The additional investment will raise the production capacity of the Polish unit, one of the group's core facilities in Europe, and enhance customer service in response to the anticipated increase in production volume by the auto manufacturers based in the region, including Japanese and Korean carmakers. (From a press release on Apr. 8, 2008)
<USA>
-The Company started operations at its Kentucky Plant in July 2008.
-The Company announced that it will merge two of its wholly owned US subsidiaries, which are Nifco America Corporation (based in Ohio) and Nifco North America Inc. (based in Kentucky), as of April 1, 2009. Both subsidiaries engage in the production and sale of industrial plastic fasteners and metal molds. The manufacturing facility of Nifco North America in Kentucky will continue to operate as a business unit of Nifco America Corp., following the consolidation of Nifco North America into Nifco America Corp. (From a press release on Jan 26, 2009)
-The Company announced that its subsidiary, Nifco Korea Inc., has established a new subsidiary in the USA called Nifco Korea USA Inc. in Montgomery, Alabama. Nifco Korea USA, which has been entirely funded by Nifco Korea, will manufacture and sell composite plastic molded products. The products are being produced exclusively for a Korean automotive manufacturer, one of Nifco Korea's main customers, and will be delivered to the carmaker's production facilities located in North America. (From a press release on Oct 31, 2008)
<Thailand>
-In September 2008, the Company bought additional shares in Union Nifco Co., Ltd., making it a full subsidiary. Previously, it was already considered a subsidiary, being accounted for under the equity method of accounting.
-The Company's subsidiary, Nifco Thailand Co., Ltd., postponed constructing a third plant as a result of the global economic downturn.
| Outlook for FY2009 | (in millions of JPY) |
| FY2008 (actual) |
FY2009 (forecast) |
Rate of change (%) |
|
| Sales | 122,518 | 97,000 | (20.8) |
| -First Half | 68,979 | 44,000 | (36.2) |
| -Second Half | 53,539 | 53,000 | (1.0) |
| Investment Expenditure | 11,474 | 8,000 | (30.3) |
| Plastic Molded Products Business Division: Sales by Region | (in millions of JPY) |
| FY2008 (actual) |
FY2009 (forecast) |
Rate of change (%) |
|
| Japan | 55,500 | 47,800 | (14.0) |
| North America | 11,600 | 7,500 | (35.6) |
| Europe | 6,700 | 4,000 | (40.7) |
| Asia | 27,500 | 18,700 | (32.0) |
| Total | 101,400 | 78,000 | (23.1) |
R&D
| R&D Expenditure | (in millions of JPY) |
| FY2008 | FY2007 | FY2006 | |
| Overall | 1,710 | 2,018 | 1,788 |
| Industrial plastic parts and components | 1,685 | 1,775 | 1,657 |
R&D Activities
Automotive
-With regard to environmental technology, the Company succeeded in commercializing valves that satisfied the LEV and ZEV regulations adopted by the California Air Resources Board. The Company is also differentiating these valves by integrating their functions.
-Utilizing its energy-saving technology, the Company works on improving fuel efficiency to reduce CO2 emissions. Its efforts include developing plastic products in order to improve the efficiency of engine combustion as well as that for basic transmission functions. It is also developing technology in the area of plastic fasteners/fastenings in response to the greater use of plastics in vehicle bodies to reduce weight.
Technical Alliance Agreements (As of Mar. 31, 2009)
| Company Name (Location) |
Contract Coverage | Contract Term |
| Illinois Tool Works Inc. (USA) |
Plastic buckles | Until Aug. 27, 2023 |
| Mitsubishi Gas Chemical Company Inc., Mitsubishi Corporation (Japan, UK) |
Gas assisted injection molding methods and related equipment (Including a sublicense of a patent of Sympress, UK) | Until Oct. 24, 2009 |
Technical License Agreements (As of Mar. 31, 2009)
| Company Name (Location) |
Contract Coverage | Contract Term |
| Nifco Taiwan Corporation (Taiwan) |
Manufacturing technologies for plastic buckles and industrial fasteners | Until Dec. 31, 2010 |
| Nifco Korea Inc. (Korea) |
Manufacturing technologies for plastic buckles and fasteners | Until Dec. 31, 2009 |
| Union Nifco Co, Ltd. (Thailand) |
Manufacturing technologies for plastic buckles; and assembling both plastic and metal fasteners | Until Dec. 31, 2011 |
| Nifco Manufacturing (Malaysia) Sdn. Bhd (Malaysia) |
Manufacturing technologies for plastic buckles and fasteners | Until Dec. 31, 2012 |
| Nifco (Hong Kong) Ltd. (Hong Kong) |
Manufacturing technologies for plastic buckles, plastic or metal fastener assembly | Until Dec. 31, 2010 |
| Nifco U.K. Ltd. (UK) |
Industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2009 |
| Nifco America Corporation (USA) |
Industrial plastic parts and assemblies that contain other parts and materials | Until Dec. 31, 2009 |
| Nifco Products Espana S.L.U. (Spain) |
Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2012 |
| Shanghai Nifco Plastic Manufacturer Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2012 |
| Dongguan Nifco Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2012 |
| Nifco Thailand Co., Ltd. (Thailand) |
Buckle/industrial plastic parts and assemblies that contain other parts and materials. Manufacturing technologies for dies for these parts and finished products | Until Dec. 31, 2013 |
| Tifco (Dongguan) Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2011 |
| Beijing Nifco Co., Ltd. (China) |
Resin and metal parts/finished goods with fastening properties. Products combining resin parts and metal parts; buckles; and manufacturing technology for dies used to manufacture these parts and finished products | Until Dec. 31, 2010 |
Investment Activities
R&D