Kinugawa Rubber Industrial Co. Ltd. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of change (%) |
Factors | |
Sales | 52,177 | 58,923 | (11.4) | -Saleswere down because the Company's main customerreduced its auto production. |
Operating income | 4,105 | 2,207 | 86.0 | - |
Ordinary income | 4,317 | 2,065 | 109.1 | - |
Net income | 2,980 | 729 | 308.8 | - |
Recent Developments in Japan
-The Company has almost transformed its management position so that it should put the finest focus on profit earning. Its break-even point last month has been decreased almost to half the FY 2007 level, when the sales were approx. 65.3 billion yen. The Company has thoroughly eliminated waste through restructuring efforts started in FY 2007 and started full-scale efforts to spread globally its production system suitable for high-mix low volume manufacturing in the second half of 2008. The Company has thus established itself as a company capable of securing a certain level of profits in spite of output volume fluctuation, especially decrease. While its FY 2009 operating income margin target is 3.5%, the result is expected to exceed the target thanks to achievements of its constitutional improvement measures. (From an article in the Nikkan Jidosha Shimbun on Sep. 1, 2009)Contracts
-The Company has received orders from Toyota Motor Corp.'s U.S. manufacturing base for its auto body seals. Its delivery is expected to start in 2011 for the flagship passenger car produced there. The Company launched activities to improve quality to the level of those made in Japan and such efforts have resulted in this new business. As for overseas operations, its joint venture in Tianjin, China is already supplying parts to Toyota. (From an article in the Nikkan Jidosha Shimbun on Oct. 1, 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 | 1,046 | 1,451 | 1,705 |
Body parts | 691 | 918 | 1,296 |
Brake parts | 248 | 250 | 160 |
Major Developments
Body parts-Development of materials and a new cross section structure with an aim to reduce a number of attachments. Development of weather strip seals with higher price competitiveness.
-Expansion of application of lighter sealing parts made of low specific gravity rubber for auto bodies.
-Expansion of application of combining interior components with more attractive design.
-Expansion of application of TPV G/RUN made of high-function elastomer with higher recycling efficiency.
-Establishing a manufacturing frameworkthat makes use of the unique features of each locality,ensuring that the company maintains its competitive edge.
Brake parts
-Developing higher performance rubber parts for brake systems; and new production methods that reduce costs.
Technological Licensing Agreements
(As of Mar. 31, 2010)
Partner | Country | Purpose | Contract period |
Faltec Co., Ltd. | Japan | Window moldings and their manufacturing methods | From 2000.04.01 until the production terminates. |
Technical Assistance Contracts
(As of Mar. 31, 2010)
Partner | Country | Purpose | Contract period |
Metzeler | UK | Manufacturing technology for automotive weather-strips | From 1988.11.25, until production terminates. |
Renault Samsung Mortors | Korea | Technical assistant agreement for sealing products for automobile bodies. | From 2003.03.01, until production terminates. |
Investment Activities
Investment Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | Approx. 1,200 | Approx. 2,200 | Approx. 1,700 |
Body parts | Approx. 800 | Approx. 1,100 | Approx. 700 |
Antivibration parts | Approx. 100 | Approx. 400 | Approx. 400 |
Brake parts | Approx. 200 | Approx. 300 | Approx. 300 |
-Investment was focused on streamlining operations and revamping production lines in order to respond to model changes made by its customers.
Planned Capital Investments
(As of Mar. 31, 2010)
Company/Office Name | Location | Equipment to be installed | Planned amount of investment (in millions of JPY) |
Start | Complete | Remark |
Kinugawa Koriyama Co., Ltd. | Fukushima Pref., Japan | Auto body components productionfacilities | 83.3 | Apr. 2010 | Mar. 2011 | * |
Kinugawa Oita Co., Ltd. | Oita Pref., Japan | Auto body components productionfacilities | 52.6 | Apr. 2010 | Mar. 2011 | * |
Kinugawa Antivibration Co., Ltd. | Tochigi Pref., Japan | Anti vibration parts productionfacilities | 87.0 | Apr. 2010 | Mar. 2011 | * |
Kinugawa Brake Parts Co., Ltd. | Tochigi Pref., Japan | Brake parts productionfacilities | 151.0 | Apr. 2010 | Mar. 2011 | |
Teito Rubber Ltd. | Saitama Pref., Japan | Brake parts productionfacilities | 80.0 | Apr. 2010 | Mar. 2011 | * |
Kinugawa Rubber (Guangzhou) Co., Ltd. | Guangzhou, China |
Auto body components productionfacilities | 117.0 | Jan. 2010 | Dec. 2010 | * |