Press Kogyo Co., Ltd.

Company Profile

■URL

http://www.presskogyo.co.jp/en/

■Address

1-1-1 Shiohama, Kawasaki-ku, Kawasaki-shi, Kanagawa Pref., 210-8512 Japan

Business Overview

-Mainly manufactures and sells automotive components (cross members, frame assemblies, brackets, etc.), finished vehicles, automotive stamping dies and assembly devices, and construction machinery components.

-The Company conducts its business in two operating segments: the Automobile-Related Business; and the Construction Machinery Business.

Financial Highlights

-The Company’s financial results for the fiscal year that ended in March 2017 are as follows.
Consolidated sales: JPY 186,629 million (4.7% decrease year-over-year)
Operating income: JPY 8,639 million (14.6% decrease year-over-year)
Ordinary income: JPY8,101 million (12.0% decrease year-over-year)
Current net profit attributable to the parent-company’s shareholders: JPY 5,263 million
(6.2% decrease year-over-year).

Production volumes by the Group of regular and small-truck parts remained high in Japan throughout the entire year, exceeding those of the previous year. However, export volumes were lower year-over-year due to economic downturns in resource-rich countries. Sales generated by the automotive business account for 86.3% of total sales.

Recent Business Developments

  • Production plants in Japan: The Company is working on winning new orders and switching over production operations to meet launches of redesigned vehicle models.
  • Thailand: The Thai operations are conducting activities to improve production and increase sales for next-season’s redesigned vehicle models, working in collaboration with Japan.
  • USA: The US operations, which won firm orders for axle tubes and door-reinforcement parts, is switching over production operations to deliver them.
  • Indonesia: The Company, which won firm orders for SUV frames, is switching over production operations to deliver them.

 

Mid-term Management Plan

-The Company revised its mid-term financial targets for FY ended March 2019 due to changes in business environment like slowdown in emerging market economies.

<Financial targets for FY ended March 2019>

  • Consolidated sales: JPY 270 billion => JPY 192 billion
  • Operating profit margin (consolidated): 10% or higher => 6% or higher
  • Net asset ratio: 50% or higher  => 50% or higher
  • ROE: 12% or higher => 8% or higher

Shareholders

-Listed on the first section of the Tokyo Stock Exchange. (As of Mar. 31, 2017)
Name or Company Name Investment Ratio (%)
Isuzu Motors Ltd. 8.90
JP MORGAN CHASE BANK 385632 6.45
NORTHERN TRUST CO. (AVFC)RE NVI01 5.40
The Master Trust Bank of Japan, Ltd. (Trust account) 4.19
Japan Trustee Services Bank Ltd. (Trust account) 4.10
CBNY-GOVERNMENT OF NORWAY 3.18
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO 2.27
Press Kogyo Employee Stock holdings 2.00
STATE STREET BANK AND TRUST COMPANY 505019 1.95
Customer shareholding commission 1.84
Total 40.29

Products

Chassis frames
Rivet type frames for heavy-duty trucks
Rivet type frames for light trucks
Weld type frames for pickup trucks

Axle modules
Front axles
-Front axle units for medium- heavy-duty trucks
-Final drive units
-Rigid type front axle units

Rear dead axles
-Dead axle units for medium and heavy-duty trucks

Rear drive axles
-Rear axle housings for heavy-duty trucks
-Rear axle units for heavy-duty trucks
-Rear axle units for medium-duty trucks
-Rear axle units for pickup trucks
-Rear axle housings for light trucks
-Axle tube units

Suspensions
Front axle units (front independent suspension type)
Front suspension cross member assemblies

Under-run protectors (RUPs)
Front under-run protectors for light, medium and heavy-duty trucks
Rear under-run protectors for medium and heavy-duty trucks

Plastic Parts
Cab rear covers
Side covers
Transmission covers
Under covers
Air cleaner brackets
Urea water tank brackets
Battery trays
Front tyre splash
Rear steps

Other automotive parts
Front bumpers
Axle shafts (after machining)
Front knuckle spindles
ABS sensor rings
Instrument panel cores
Cowl top panels
Front pillar inner
Door beams
Ladder frames

History

Feb. 1925 Established "Press Works," a limited partnership, in Ohi, Shinagawa-ku, Tokyo.
Started stamping of train components and construction materials.
May 1929 Started production of frames. Entered into automotive components segment.
Jun. 1933 Started production of rear axle housing.
Jun. 1934 Incorporated the company and renamed it "Press Kogyo Co., Ltd" with capital of 0.5 million yen.
Dec. 1937 Moved headquarters and plant to Kawasaki.
Apr. 1939 Opened Press Kogyo School for Youth (renamed Press Technical College in 1970).
Jan. 1953 Succeeded in producing Japan's first stamped large-sized rear axle housing.
Feb. 1954 Went public on the Tokyo over-the-counter market (50 million yen capital).
Aug. 1961 Listed on the first section of the Tokyo Stock Exchange (800 million capital).
Oct. 1961 Listed on the first section of the Osaka Stock Exchange (800 million capital).
Jul. 1988 Established a joint venture, PK USA, Inc. (currently a consolidated subsidiary) in the USA..
Dec. 1995 Invested in Thai Summit PKK Co., Ltd.
Mar. 1997 Started PDI service for General Motors Japan's Saturn.
Mar. 1997 Invested in Thai Summit PKK Bangna Co., Ltd.
Apr. 1997 Invested in and established Blue River Stamping, Inc. as a subsidiary to PK USA, Inc.
Aug. 1999 Moved functions of the Tochigi Works to the Utsunomiya Plant
Aug. 2001 Invested in Bankin Kogyo (currently an affiliate).
Mar. 2002 Invested in Thai Summit PKK Engineering Co., Ltd.
Jul. 2004 Established a joint venture, PM Cabin Manufacturing Co., Ltd. , a consolidated subsidiary
Jul. 2004 Established Metal Techno, a consolidated subsidiary.
Feb. 2005 Increased share capital through a public offer of new shares at market value. This amounted to 3,624 million yen.
Mar. 2005 Increased capital under a third-party allocation of new shares amounting to 543.6 million yen.
Apr. 2005 Merged temporality with Press Kogyo Saitama Mfg. Co. Ltd., located in Kawagoe-shi, Saitama; which started its operations as the Saitama plant.
Sep. 2005 Established Press Kogyo Co., Ltd. in Thailand.
Nov. 2005 Established PK-UD Axle Co., Ltd., a joint-venture in Hangzhou in China, which is currently an unconsolidated subsidiary.
Dec. 2005 Thai Sumit PKK Co., Ltd. acquired Siam Auto Manufacturing.
Jun. 2006 Obtained additional shares in Thai Summit PKK Co., Ltd.; Thai Summit PKK Bangna Co., Ltd.; Thai Summit Engineering PKK Co., Ltd.; and Siam Auto Manufacturing Co., Ltd., making them its consolidated subsidiaries.
Dec. 2006 PP Press & Platgruppen AB was reorganized into Press & Plat N.V., and Press & Plat Industri AB.
May 2007 Acquired additional shares of Press & Plat N.V. and Press & Plat Industri AB, making them consolidated subsidiaries.
Nov. 2008 Established a joint-venture company, Thai Summit PK Corporation Ltd. in Thailand with the aim of integrating all of its existing joint-venture units in Thailand in the future. This joint venture is now a consolidated subsidiary.
Jan. 2010 Established Ocean Stream (Thailand) Co., Ltd. in Thailand.
Oct. 2010 Established PK Manufacturing (Suzhou) Co., Ltd. in Suzhou, China.
Aug. 2011 Established PT.PK Manufacturing Indonesia.
Feb. 2012 Established Press Kogyo Mini Cabin (Suzhou) Co.,, Ltd. in Suzhou, China.

Supplemental Information 1