Expanding sales of high-performance products for the automotive sector

「We continued to develop and expand sales of products such as high-voltage wire harnesses compatible with the electric vehicle market, expand sales of aluminum wire harnesses suitable for weight reduction, and improve the productivity of these products.」

「Profit in the automotive parts business declined due to lower sales of batteries for automotive applications.」

「Sales in the automotive parts business remained firm, driven by the expansion of vehicle models equipped with aluminum wire harnesses that contribute to vehicle weight reduction. We also worked on developing and expanding sales of high-voltage wire harnesses and other products for the electric vehicle market.」

「Profit in the automotive parts business increased due to productivity improvements supported by stable orders and appropriate battery pricing.」

「A newly developed conversion box for electric vehicles is being delivered to customers in mass production, and electric vehicles equipped with this product have been launched on the market since July 2023.」

「Although the automotive parts business faced profit headwinds from product warranty costs, higher raw material and fuel prices, increased depreciation and research and development expenses, and weak demand from Japanese OEMs in the Chinese market, profit increased due to higher vehicle production and improvement measures, including productivity improvements and lower air freight costs resulting from stable customer production plans and appropriate sales price adjustments. Meanwhile, the Electrical and Electronics Materials business reported lower profit despite appropriate sales price adjustments and fixed-cost controls, due to lower electronics-related demand and higher raw material and fuel prices. As a result, segment sales were ¥474.7 billion, up 6.7% year on year, and operating profit was ¥10.2 billion, an improvement of ¥11.3 billion year on year.」

「Although the automotive parts business faced profit headwinds from higher raw material and fuel prices, product warranty costs and weak demand from Japanese OEMs in the Chinese market, profit increased due to higher vehicle production and improvement measures, including productivity improvements and lower air freight costs resulting from stable customer production plans and appropriate sales price adjustments.」

「Although the automotive parts business faced profit headwinds from higher raw material and fuel prices, product warranty costs and weak demand from Japanese OEMs in the Chinese market, profit increased due to higher sales resulting from the easing of COVID-19 effects and customer semiconductor shortages, as well as productivity improvements, appropriate sales price adjustments and lower air freight costs. As a result, segment sales were ¥149.7 billion, up 1.4% year on year, and operating profit was ¥0.2 billion, an improvement of ¥1.5 billion year on year.」

「To meet rising demand for vehicle weight reduction accompanying the acceleration of vehicle electrification, we will leverage the advantages of aluminum wire harnesses, whose adoption in new vehicle models is steadily expanding, to pursue business growth and improve profitability.」

「The automotive parts and battery businesses reported higher profit despite the impact of surging raw material and fuel prices, higher cost ratios, mainly labor costs, due to China's lockdown and changes in customers' production plans, and increased air freight costs incurred in the first quarter due to differences in the fiscal year-end of overseas subsidiaries with December year-ends. This was due to the product-mix effect from wire harnesses for new vehicle models and the elimination of temporary costs, mainly business continuity management and emergency transportation expenses, incurred in the third quarter of the previous fiscal year.」

「Although the automotive parts business benefited from a product-mix effect from wire harnesses for new vehicle models, profit declined due to surging raw material and fuel prices, higher fixed costs, including increased headcount related to new site openings, higher costs for business continuity management measures related to last year's Vietnam lockdown, higher cost ratios due to China's lockdown and changes in customers' production plans, and increased air freight costs incurred in the first quarter due to differences in the fiscal year-end of overseas subsidiaries with December year-ends. The automotive parts business saw a significant decline, and segment sales were ¥293.2 billion, up 22.8% year on year, while operating loss was ¥1.8 billion, a deterioration of ¥4.2 billion year on year.」

「Although the automotive parts business benefited from a product-mix effect from wire harnesses for new vehicle models, profit declined due to higher logistics and fixed costs, including the impact of transportation delays and increased air freight costs at overseas subsidiaries with December year-ends, higher headcount related to the opening of new sites, and surging raw material and fuel prices.」

「Although the automotive parts business was affected by global vehicle production cuts due to shortages of semiconductors and resin, wire harness sales remained firm, and sales recovered as aluminum wire harnesses that contribute to vehicle weight reduction and lower environmental impact were increasingly adopted in new vehicle models.」

「Although demand recovery continued, centered on vehicle-related and electronics-related products, profit declined sharply due to lockdowns at some Southeast Asian sites caused by COVID-19, lower attendance rates resulting from the spread of community transmission in some regions from late November, and higher business continuity management costs and emergency transportation expenses. Segment sales were ¥353.7 billion, up 21.9% year on year, and operating loss was ¥2.1 billion, a deterioration of ¥2.7 billion year on year.」

「Although demand recovered, centered on the automotive market, vehicle-related products and electronics-related products, profit growth remained limited due to customer production cuts in the automotive parts business and lockdowns at some Southeast Asian sites caused by COVID-19. Segment sales were ¥238.8 billion, up 36.2% year on year, and operating profit was ¥2.4 billion, an improvement of ¥5.5 billion year on year.」

「Demand recovered, centered on the automotive market, vehicle-related products and electronics-related products.」

「In the automotive parts business, we will continue working to expand orders for aluminum wire harnesses and corrosion-resistant terminals that contribute to vehicle weight reduction and establish the necessary production system. We will also promote the capture of demand in regions where the market is expected to expand due to tighter airbag regulations, as well as the development of new products for next-generation vehicles, centered on our core steering roll connectors.」

「For the cumulative nine-month period of the third quarter of the current fiscal year, the group's results, comprising the company, its consolidated subsidiaries and equity-method affiliates, reflected a recovery in the Electrical and Electronics segment, centered on the automotive parts business, that exceeded expectations. However, the significant impact of COVID-19 through the cumulative second quarter resulted in lower sales and operating profit.」

「The automotive parts business was significantly affected by COVID-19, including temporary shutdowns at some overseas consolidated subsidiaries' production sites, lower operating rates after their reopening, and higher transportation and alternative production costs. Segment sales were ¥175.3 billion, down 31.1% year on year, and operating loss was ¥3.0 billion, a deterioration of ¥9.7 billion year on year.」

「The Electrical and Electronics segment reported lower sales and operating profit due mainly to the impact of COVID-19 on the automotive parts business.」

「In the automotive sector, sales of automotive parts, including wire harnesses, remained weak due to the impact of declining global vehicle production toward the second half of the fiscal year.」

「While winding sales for electric vehicle applications remained firm, the prolonged weakness in demand for electronics-related products, including smartphones, and in the automotive parts business, lower wire harness sales and higher fixed costs, including research and depreciation expenses, for projects from fiscal 2020 onward weighed on results.」

「While sales of windings for electric vehicles remained firm, the prolonged weakness in demand for electronics-related products, including smartphones, and increased fixed costs, including research and depreciation expenses, for projects from fiscal 2020 onward weighed on results in the automotive parts business. Segment sales were ¥254.4 billion, down 8.0% year on year, and operating profit was ¥6.7 billion, down 13.8%.」

「Wire harnesses remained firm in the automotive parts business, and automotive applications remained solid in the winding business. However, demand for electronics-related products, including smartphones, remained weak. Segment sales were ¥128.0 billion, down 7.3% year on year, and operating profit was ¥3.5 billion, down 0.3%.」

「During the fiscal year, we increased the group's ownership stake in Minda Furukawa Electric Private Ltd. in India to 75%, making it a consolidated subsidiary. Through the company, we aim to expand sales of steering roll connectors, in which we have a competitive advantage, as airbags become mandatory in the Indian market.」

「Furukawa Automotive Parts (Vietnam) Inc. Vietnam, Ho Chi Minh City Electrical and Electronics Manufacturing equipment for aluminum wire Approx. ¥3.5 billion Internal funds and borrowings October 2018 September 2020 (Note) The company's aluminum wire production capacity is planned to be approximately four times its current level in December 2021.」

「In the automotive parts business, fixed costs, including depreciation and research expenses, increased, but wire harnesses remained strong for the second consecutive year. As a result, segment sales were ¥276.8 billion, up 11.5% year on year, and operating profit was ¥7.7 billion, up 6.6%.」

「In the automotive parts business, wire harnesses remained strong for the second consecutive year, but fixed costs, including depreciation and research expenses, increased. As a result, segment sales were ¥138.3 billion, up 13.3% year on year, while operating profit was ¥3.4 billion, down 4.4%.」

「In the automotive parts business, we will advance production in optimal locations, including by utilizing production sites in Southeast Asia, to improve cost competitiveness, while strengthening our production system for aluminum wire harnesses to meet demand for vehicle weight reduction.」

「The automotive parts business also benefited from increased sales of wire harnesses adopted for new vehicle models. As a result, segment sales were ¥383.0 billion, up 16.7% year on year, and operating profit was ¥12.5 billion, up 79.9%.」

「Demand for copper products such as copper strip increased, demand for smartphones and electronic components in the winding business remained firm, and the automotive parts business benefited from a recovery in domestic demand, which had declined following the Kumamoto earthquake in April last year, as well as increased sales for new vehicle models. As a result, segment sales were ¥248.3 billion, up 15.4% year on year, and operating profit was ¥7.2 billion, up 116.7%.」

「The automotive parts business also benefited from a recovery in domestic demand, which had declined following the Kumamoto earthquake in April last year, and increased sales for new vehicle models. As a result, segment sales were ¥122.0 billion, up 16.6% year on year, and operating profit was ¥3.5 billion, up 278.5%.」

「We worked to secure orders for new products, including aluminum wire harnesses and aluminum corrosion-resistant terminals that contribute to vehicle weight reduction, as well as radar systems for advanced driver assistance systems, which entered mass production for the first time among Japanese companies.」

「Despite the impact of temporary cost increases in the copper strip and high-performance materials business, sales in the segment were ¥328.2 billion, down 9.2% year on year, while operating profit was ¥6.9 billion, up 15.5%, due in part to cost improvements at the Mexico site of the automotive parts business.」

「Although the Copper Strip and High-Performance Materials business incurred temporary cost increases, segment revenue was ¥215.2 billion, down 10.5% year on year, and operating profit was ¥3.3 billion, up 9.7%, due to increased demand in the automotive parts business and cost improvements resulting from lower lead prices in the battery business.」

「The segment's revenue was ¥104.6 billion, down 14.6% year on year, and operating profit was ¥0.9 billion, down 33.9%, as the automotive parts business was affected primarily by weak domestic demand, including the Kumamoto Earthquake in April of this year.」

「In the automotive field, the company aims to expand sales centered on high-performance new products, including aluminum wire harnesses and their connectors, which contribute to vehicle weight reduction, and power management-related products comprising high-capacity, highly durable lead batteries, battery condition-monitoring sensors and other products.」