June 5, 2014
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 Denso, projecting a falloff in earnings on slightly rising sales, and Aisin 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, Nissan'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 Toyota 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.
Aisin Seiki, Toyoda Boshoku Among Less Optimistic
Suppliers forecasting declines in some performance metrics:
Aisin Seiki projects virtually flat earnings and sales in fiscal 2014, reflected by declining vehicle production in Japan offset by increased output in North America and China. Fiscal 2014 should see automatic transmission output of 680,000, up 3.3%, while manual transmission production falls 11.2% to 143,000 units, the supplier says. Navigation-system output is expected to slip 6.3% to 120,000 units.Among its subsidiaries, Aisin AW is projecting 2.2% and 2.6% growth in earnings and sales, respectively, while Aisin AI expects earnings to plunge 52.8% on a 6.6% drop in revenue. ADVICS is forecasting flat earnings on a 1.7% rise in sales.
Denso, Japan’s No.2 supplier behind Bridgestone, forecasts a 7.3% decline in earnings to ¥350.0 billion ($3.5 billion) on marginally higher sales of ¥4.1 trillion ($40.9 billion), up 1.1%. Denso blames the decline on lower vehicle production in Japan and higher R&D and capital-investment costs. It says its 2014 sales forecast is predicated on supplying parts and components to 29,160,000 vehicles, up 7.2%.
Keihin, Honda's leading electronics supplier, expects mixed results, with earnings up 6.9% to ¥21.0 billion ($206 million), but a 12.7% drop in revenue to ¥325.0 billion ($3.2 billion).
Toyoda Boshoku, the leading automotive seating and interiors manufacturer in the Toyota Group, forecasts a 6.3% decline in earnings to ¥27.0 billion ($267 million), with sales falling 1.5% to ¥1.2 trillion ($11.9 billion).
Toyoda Gosei, a Toyota Group supplier of synthetic rubber and plastic components, predicts a 15.5% decline in earnings to ¥37.0 billion ($365 million) and a 2.8% drop in revenue to ¥670.0 billion ($6.6 billion).
TS Tech expects a 4.2% decline in both earnings and sales to ¥37.5 billion ($368 million) and ¥438.0 billion ($4.3 billion), respectively, as a result of softening demand in North America, Asia (excluding China) and Europe.
About the Author
You May Also Like
