What is in this article?:
- Many, Not All, Major Japanese Suppliers Expect Continued Growth in Fiscal 2014
- Aisin Seiki, Toyoda Boshoku Among Less Optimistic
Those projecting gains include Bridgestone, Hitachi Automotive Systems and NSK, whileand Seiki are among parts makers with more pessimistic outlooks.
Denso forecasts 7.3% drop in profits.
TOKYO – Fiscal 2013 turned out to be a record earnings year for most Japanese automotive suppliers, and many are expecting more of the same for the current fiscal year.
Exceptions include, projecting a falloff in earnings on slightly rising sales, and Seiki, which expects flat results overall as a result of declining vehicle production in Japan.
Others, including Bridgestone, Koito Mfg. and NSK, see profits on the rise in the coming months, a survey by WardsAuto shows.
Among suppliers projecting further gains this year:
- Bridgestone, which operates on a January-December fiscal year, is forecasting full-year earnings and sales of ¥460.0 billion ($4.5 billion) and ¥3.8 trillion ($37.3 billion), respectively, up 5.0% and 6.5% over fiscal 2013 record levels. Tires accounted for 85.1% of fiscal 2013 sales.
- Calsonic Kansei, 's main supplier, predicts a 4.1% rise in earnings to ¥30.0 billion ($294 million) on a 2.3% gain in revenue to ¥940.0 billion ($9.2 billion).
- Hitachi Automotive Systems, projects 12.6% earnings growth to ¥60.0 billion ($593 million) and a 10.5% rise in revenue to ¥940.0 billion ($9.3 billion).
- JTEKT, a leading maker of steering and driveline systems, predicts an 8.2% jump in earnings to ¥63.0 billion ($618 million) on sales of ¥12.7 trillion ($124.6 billion), up 0.8%.
- Koito Mfg., a affiliate and Japan's leading automotive lighting producer, forecasts 1.0% earnings growth to ¥50.0 billion ($494 million) and a 4.8% jump in revenue to ¥626.0 billion ($6.2 billion).
- NGK Spark Plug says its automotive business shold grow to ¥65.7 billion ($645 million) in earnings, up 11.6%, on a 2.3% jump in revenue to ¥278.5 billion ($2.7 billion).
- NOK forecasts earnings soaring 28.9% to ¥42.0 billion ($415 million) on a 7.3% gain in sales to a record ¥634.6 billion ($6.3 billion).
- NSK, supplier of electric power steering systems and wheel-hub bearings, projects earnings of ¥75.0 billion ($736 million) and sales of ¥910 billion ($8.9 billion), up 10.3% and 4.4%, respectively. Automotive earnings are projected to account for ¥51.0 billion ($500 million) on revenues of ¥615.0 billion ($6.0 billion).
- Stanley Electric forecasts a healthy 13.9% earnings jump to ¥42.0 billion ($415 million), with sales gaining 4.8% to ¥345.0 billion ($3.4 billion).
- Sumitomo Rubber, Japan's second-largest tire maker behind Bridgestone, foresees 7.7% growth in earnings to ¥83.0 billion ($814 million) and a 7.6% rise in sales to ¥840 billion ($8.2 billion) for calendar 2014. Last year, tires accounted for 84.2% of revenues, with sporting goods and chemicals responsible for the rest.
- Sumitomo Electric, Japan's second-ranked automotive wiring-harness supplier, forecasts fiscal 2014 earnings ¥75.0 billion ($736 million) on sales of ¥1.4 trillion ($137.3 billion). That’s up from ¥71.8 billion ($704 million) and ¥1.35 trillion ($132.5 billion), respectively, for fiscal 2013, when automotive accounted for 52.6% of sales and 59.3% of earnings.
- Toyo Tire & Rubber sees earnings rising 7.4% to ¥40.0 billion ($393 million) and an 8.0% jump in sales to ¥400.0 billion ($3.9 billion).
- Yokohama Rubber envisions 11.2% growth in profits to ¥63.0 billion ($617 million), on record sales of ¥647.0 billion ($6.3 billion) in calendar 2014, up 7.5% from 2013.