Nittan Valve Co., Ltd. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) |
Factors | |
Overall | ||||
Sales | 27,753 | 31,693 | (12.4) | - |
Operating income | 369 | 1,279 | (71.1) | - |
Ordinary income | 762 | 1,201 | (36.6) | - |
Current net income | (189) | (255) | - | - |
Automotive components | ||||
Sales | 23,169 | 24,576 | (5.7) | 1) |
Operating income | 731 | 995 | (26.5) | - |
Factors
1)
Automotive components
<Vehicle engine valves>
-While sales of products destined for Europe and the U.S. were falling, orders were recovering due to economic stimulus measures and growing demand in emerging markets. Products for eco-cars were also on the increase. Financial performance of North American subsidiaries included in the consolidate statement was also a factor to increase sales.
<Precision forged gears for automotive use >
-Despite a trend in recovery since the second half, dwindling demand in Europe and the U.S. decreased sales.
<Valve lifters>
-Despite an increase in domestic production due to a rebound in demand for products for overseas markets, sales decreased by separating Korean affiliates from the consolidated statement.
<NT-VCP (Variable valve timing system)
-In spite of stagnant demand in North America, increased orders due to model changes of vehicles installed with the products resulted in sales on par with the level in the previous year.
>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 1,391 | 1,346 | 1,194 |
R&D 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 (variable valve timing systems), which is compatible with exhaust emission regulations; in addition to improving fuel efficiency and manufacturing methods.
-The Company has made tangible achievements for commercialization of a low-cost variable device which controls engine valve lift. Aiming to start supplying it in 2011 or 2012, the Company will promote the new device, targeting automakers working to meet the CO2 emission regulations to be tightened in Japan, Europe and the U.S. As well as fuel efficiency and exhaust emission, a variable valve lift device improves engine power. As its mechanism, however, tends to be complex, its application has been limited to luxury cars like a sport type, with some exceptions. The cost of this new device has been reduced to the range which makes it affordable for application in mass produced models, and it will, therefore, meet the new needs. With a focus on developing a simple mechanism to achieve variable control, the Company is about to realize the cost level affordable for wide range of vehicles. (From an article in the Nikkan Jidosha Shimbun on Apr. 14, 2009)
-The Company has almost completed substantial downsizing of its variable valve timing device, Variable Cam Phaser (VCP), which is 30 to 40 percent smaller in volume than conventional types. In addition to weight reduction through downsizing, the fourth generation VCP has improved performance and variable angles. Furthermore, the magnetic control system makes performance less susceptible to engine revolutions and fluctuations of environmental temperatures. The Company is willing to enhance performance of the new generation product even further. (From an article in the Nikkan Jidosha Shimbun on Nov. 10, 2009)
-The Company will develop a new mechanism to adjust valve clearances without using oil pressure generated by the engine. The Company is in the final process of developing "Mechanical Auto Lash Adjuster" mechanism, which can automatically adjust clearances between valve parts without being influenced by lubricating conditions. The mechanism to keep oil pressure at an appropriate level in the valve lifter has a function of maintaining clearances properly on its own. Scores of scrupulously bundled tiny reed-shaped plate springs can maintain pertinent conditions without relying on oil pressure. The Company intends to get new orders from automakers by presenting them this technology as contributing to reduction of engine weight and cost. (From an article in the Nikkan Jidosha Shimbun on Nov. 24, 2009)
Technical Alliances
(As of Mar. 31, 2010)
Partner | Content of agreement | Project Period |
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 |
P.T. Federal Nittan Industries (Indonesia) |
License agreement on small engine valves | 5 years from Jun. 1, 2005 |
Shinwa Precision Co., Ltd. (Korea) |
License agreement on oil pressure valve lifters | 5 years from Aug. 1, 2005 |
Nittan (Thailand) Co., Ltd. (Thailand) |
Technical assistance agreement on small engine valves | 10 years from Jan. 1, 2003 |
Shinwa Precision Co., Ltd. (Korea) |
License agreement on mechanical tappets | 10 years from Dec. 5, 2002 |
Beijing Yoosung Shinhwa Automobile Parts Co., Ltd. (China) |
License agreement on lash adusters | 10 years from Dec. 7, 2006 |
Beijing Yoosung Shinhwa Automobile Parts Co., Ltd. (China) |
License agreement on mechanical tappets | 10 years from Jan. 1, 2008 |
Nittan Euro Tech sp.zo.o. (Poland) |
License agreement on automobile engine valves | 5 years from Aug. 29、2008 when delivery of licensed products started |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 880 | 4,076 | 3,233 |
Automotive components | 804 | 1,518 | 2,671 |
Capital Expenditure of the Automotive Components Business |
(in millions of JPY) |
Facilities | Amount of investment | Description of capitalization |
The Company | 279 | Modification and rationalization of equipment used to produce engine valves |
P.T. Federal Nittan Industries (Indonesia) |
425 | Construction of a new building resulting from relocation of the plant |
Planned Capital Investments
(As of Mar. 31, 2010)
Plant | Equipment to be installed | Estimated amount of investment (in million JPY) | From | To | Increase in production capacity (%) |
Headquarters (Kanagawa Pref., Japan) |
Manufacturing equipment for engine valves, NT-VCP etc. | 280 | 2010.04 | 2011.03 | No effect on production capacity, as the purpose is for rationalizing and revamping its operations as well as enhancing its research & development capabilities. |
Sanyo Plant (Yamaguchi Pref., Japan) |
Manufacturing equipment for engine valves and valve lifters | 630 | 2010.04 | 2011.03 | |
Headquarters (Kanagawa Pref., Japan) |
Manufacturing equipment for engine valves and gears | 790 | 2010.04 | 2011.03 | |
P.T. Federal Nittan Industries Headquarters (Indonesia) |
Manufacturing equipment for engine valves | 487 | 2010.01 | 2010.12 | The purpose is for rationalizing and revamping its operations as well as enhancing its research & development capabilities. |
U.S. Engine Valve(partnership) Headquarters (U.S.A.) |
Manufacturing equipment for engine valves | 255 | 2010.01 | 2010.12 | The purpose is for rationalizing and revamping its operations as well as enhancing its research & development capabilities. |
Nittan Thailand Co., Ltd. Headquarters (Thailand) |
Manufacturing equipment for engine valves | 495 | 2010.10 | 2010.12 | The purpose is for rationalizing and revamping its operations as well as enhancing its research & development capabilities. |
Nittan Euro Tech sp.zo.o. Headquarters (Poland) |
Manufacturing equipment for engine valves | 495 | 2010.10 | 2010.12 | Primarily for obtaining new manufacturing equipment |