NITTAN VALVE CO., LTD. Business report FY2006
Business Highlights
Financial overview | ( in millions of JPY ) |
- | Mar. 2007 | Mar. 2006 | R.C. | Factors |
Overall | ||||
Sales | 34,656 | 31,972 | 8.4% | see note 1) below |
Operating income | 3,879 | 4,151 | (6.6%) | |
Ordinary income | 4,335 | 4,374 | (0.9%) | |
Current net income | 2,273 | 2,076 | 9.5% | |
Automotive components | ||||
Sales | 28,057 | 25,362 | 10.6% | see note 2) below |
Operating income | 3,278 | 3,503 | (6.4%) |
( R.C. : Rate of Change ) |
1)
As a result of the Group's continuous efforts to improve the efficiency of its equipment, reduce costs, and increase sales, its revenue increased year-on-year. Sales were supported also by rising market demand and gains from favorable exchange rate translation.
In terms of income, its operating income decreased due to soaring materials prices and rising depreciation costs, resulting from the Company's revamping its production facilities. Its net income, however, rose thanks to a gain in non-operating income.
2)
Although sales weakened in some segments in line with the lower popularity of some car models fitted with the Company's products, overall business remained strong enough to achieve a year-on-year gain in global sales. Some of the contributing factors to this increase are greater demand outside Japan; buoyant overseas business, thanks to the growing Asian economy, and the Company's initiatives to win more supply contracts.
Sales by Product
- Despite falling sales of some products due to decreased production of
car models, in which the Company's products are installed, overall sales
of automotive engine valves grew, thanks to increased orders for export,
stable demand from diesel engine manufacturers, and strong sales of valves
for gas engines.
- Although the pace of growth in the motorcycle engine valve business
in Asia partially slowed due to soaring prices of crude oil, the Company
achieved greater sales of these products worldwide by adding titanium
valves for large motorcycles and other new products to its product lineup.
-Sales at the automotive precision forged gear segment rose, thanks to
increased orders for additional model vehicles.
- Production and sales of valve lifers outside Japan were strong. The
overall revenue from valve lifters fell, however, mainly because of decreased
sales of vehicles using its products in North America; and a shift in
demand caused by consumers buying new model vehicles in order to cope
with soaring prices of crude oil.
- The revenue generated from sales of NT-VCPs jumped, following the launch
of a new a model vehicle.
R&D
R&D Expenditure | ( in thousands of JPY ) |
- | Mar. 2007 | Mar. 2006 | Mar. 2005 |
Group | 1,007,336 | 1,004,947 | 966,429 |
Automotive components | N.A | 452,674 | 449,955 |
Major R&R Activities
- The Company continuously worked on developing components for valve operating
systems, improving their performance and reducing their weight. It also
conducted development activities on heat-resistant alloys and new materials.
- The Company was engaged in improving forging methods and forging processes
for precision forged parts, particularly automotive drive parts.
- The Company conducted R&D activities to improve the performance
of the NT-VCP (an electromagnetic continuous cam phase variation
mechanism), which is compatible with exhaust emission regulations; in
addition to improving fuel efficiency and manufacturing methods.
New Products
Nittan New Technology Variable Cam Phaser (NT-VCP)
- The company has developed a continuous variable cam phaser that
uses an electromagnetic clutch to control the helical mechanism, a first
in the world. The NT-VCP achieves a greater control range and responds
more quickly, features which weren't considered possible with hydraulic
clutches that until now have been the mainstream for variable cam phase
mechanisms. The NT-VCP offers high torque at a low revolution speed, smooth
acceleration and deceleration, exceptionally clean exhaust gas and high
fuel-economy. Moreover, it enables variable control to occur easier at
lower temperatures since it does not require the use of any additional
pumps, unlike hydraulic clutches.
Major features of the NT-VCP
1. Minimum impact on engine speed and operating temperature with the use
of electromagnetic control.
2. High torque and fuel-economy at a low revolution speeds.
3. Optimum valve timing is instantaneously possible under a wide range
of operating conditions.
4. No need for additional pumps or greater pump capacity, unlike hydraulic
clutches.
Product Under Development
ULV (Ultra Light Valve)
- The company is currently developing an Ultra Light Valve (ULV) in efforts
to reduce the weight of engines. It is a next generation engine valve
based on a completely new way of being formed. Reducing the engine weight
as much as possible will contribute to lessening friction and NVH and
optimizing the valve temperature.
Technical Alliances ( as of March 2007 )
Partner | Country | Content of agreement | Project Period | |
From | To | |||
Eaton Corporation | U.S.A. | License agreement on small engine valves | Sep.1, 1996 | Dec.31, 2010 |
Eaton Corporation | U.S.A. | License agreement on oil pressure valve lifters | Sep.1,1996 | Dec. 31, 2010 |
Eaton Est Spa | Italy | Contract on sales of automotive engine valves and technical assistance for production within specified regions. | Oct. 23, 1993 | the date specified in the contract |
P.T. Federal Nittan Industries | Indonesia | License agreement on small engine valves | Jun. 1, 2005 | 5 years from the aforementioned date |
Shinwa Precision Co., Ltd. | Korea | License agreement on oil pressure valve lifters | Aug. 1, 2005 | 5 years from the aforementioned date |
Nittan (Thailand) Co., Ltd. | Thailand | Technical assistance agreement on small engine valves | Jan. 1, 2003 | 10years from the aforementioned date |
Eaton Corporation | U.S.A. | License agreement on Nittan New Technology Variable Cam Phaser (NT-VCP) | Dec.18, 2000 | Dec.9, 2007 |
Shinwa Precision Co., Ltd. | Korea | License agreement on mechanical tappets | Dec. 5, 2002 | 10years from the aforementioned date |
Investment Activities
Investment Expenditure | ( in millions of JPY ) |
- | Mar. 2007 | Mar. 2006 | Mar. 2005 |
Group | 3,647 | 4,777 | 2,037 |
Automotive components | 2,633 | 4,223 | 1,645 |
- | Amount of investment | Description of capitalization |
Nittan Valve Co., Ltd. | 1,912 | Modification and rationalization of production equipment for engine valves |
P.T. Federal Nittan Industries | 342 | Expansion of manufacturing equipment for engine valves |
Shinwa Precision Co., Ltd. | 316 | Expansion of manufacturing equipment for valve lifters |
Installment of New Equipment | ( in millions of JPY ) |
Plant | Equipment to be installed | Estimated amount of investment | From | To | Increase in production capacity (%) |
Nittan Valve Co., Ltd. | |||||
Headquarters
(Kanagawa Pref., Japan) |
Manufacturing equipment for engine valves, NT-VCP etc. | 1,287 | 2007.04 | 2008.03 | No
effect on production capacity, as the purpose is for rationalization, updating, and research & development. |
Sanyo Plant (Yamaguchi Pref., Japan) |
Manufacturing equipment for engine valves and valve lifters | 1,019 | 2007.04 | 2008.03 | |
Headquarters (Kanagawa Pref., Japan) |
Manufacturing equipment for engine valves and gears | 694 | 2007.04 | 2008.03 | |
Nittan Thailand Co.,Ltd | |||||
Headquarters (Thailand) |
Manufacturing equipment for engine valves | 286 | 2007.01 | 2007.12 | No effect on production capacity, as the purpose is for rationalizing and revamping its operations as well as enhancing its research & development capabilities. |
Shinwa Precision Co., Ltd. | |||||
Headquarters (Daegu, Korea) |
Manufacturing equipment for valve lifters | 269 | 2007.01 | 2007.12 | 10% increase in production capacity |