Business by Segment

Business by Segment

Net sales:\215,872(Millions of yen)

Sales figures

Steel Business

Business results

In the steel industry, the production of crude steel decreased from the previous year, reflecting waning demand among construction and manufacturing companies. Harsh business environments also continued in the electric furnace industry because demand for steel materials remained weak and the steel market declined.
In this environment, net sales of the Topy Industries Group came to ¥63,767 million (year-to-year comparison, 11.7% decrease) due to a decrease in the sales price. On the other hand, and although affected by the slowdown in demand for steel material towards the automotive and industrial machinery components business, as a result of securing export volume, etc., maintaining an appropriate sales price, realizing the positive impact of the new steel making facilities and other intensive cost reduction efforts, operating income ended at ¥4,815 million (year-to-year comparison, 42.4% increase).

Net sales,operating income

Net sales,operating income

2016 Sales Ratio

Research and development activities

We will promote quality enhancement of hot rolled products and research and development of environmental improvements in reducing wastes and resource recycling while developing new section steel and new grade steel.
As a practical achievement, we have succeeded in receiving orders for new section steel, reducing power intensity on the conventional products and developing technologies relating to waste reduction and recycling.
We spent ¥5 million on these R&D activities.

Issues to be addressed

The Company aims to become a leading company in the industry by supplying its distinctive deformed section steels that exhibit the highest level of cost competitiveness in Japan. It will work to slash costs throughout all the operation processes across the Group, from the procurement of materials to the delivery of products, focusing on reducing production costs through the optimization of production capabilities in new steel manufacturing facilities. It will also promote the sales of value-added products such as deformed section steels and seek to improve earnings power.

Companies involved in this business segment
Manufacturing: Topy Industries, Ltd. Akemi Recycling Center, Ltd. Sales and services: Topy Industries, Ltd. Topy Enterprises, Ltd. Topy Marine Transport, Ltd. Tojitu Co., Ltd. NE-Tojitsu Co., Ltd.

Automotive and Industrial Machinery Components Business

Business results

Domestic automobile production declined from a year ago, chiefly because of sluggish sales associated with the light vehicle tax hike and decrease in exports of trucks etc. On the other hand, demand for automobiles remained strong. As for the construction machinery industry, the Chinese and Southeast Asian markets continued to contract and demand for mining machinery remained low.
In this environment, the Group continued to take every step to improve the situation. However, net sales declined to ¥134,099 million (year-to-year comparison, 11.2% decrease), and operating income fell to ¥5,320 million (year-to-year comparison, 23.1% decrease), reflecting the impact of a decrease in the sales quantity of wheels for mini vehicles, in addition to a significant drop in the sales quantity of undercarriage parts for construction machinery against the backdrop of a sluggish demand for construction machinery in China and other emerging countries.

Net sales,operating income

Net sales,operating income

2016 Sales Ratio

Research and development activities

The Topy Industries Group will continue studies on weightsaving, quality improvement, cost reduction and speed-up of development time etc., and research and development of new products.
As for our mainstream products of automobile steel wheel and aluminum wheels, we have had significant achievements in improving the accuracy of analysis and evaluation techniques, new product development and weight-saving, cost reduction of conventional products, and quality improvement.
In construction machinery components, we have succeeded in developing new large diameter rims for mining dump trucks, which will facilitate tire change operation and also advanced the research of quality improvements and cost reduction.
We spent ¥457 million for R&D during this fiscal year.

Issues to be addressed

The Company will strive to establish its position as a general manufacture of undercarriage components for construction equipment, while at the same time work to enhance its presence as one of the world’s top-grade general wheel manufacturers. In addition, it will work to further reduce costs in an effort to build a profitable corporate structure in the face of difficult business conditions. It will also continue working to establish an optimum production system on a global basis by enhancing overseas manufacturing bases and strengthening alliances with overseas business partners.

Companies involved in this business segment
Manufacturing: Topy Industries, Ltd. Topy Fasteners, Ltd. Kyushu Wheel Kogyo, Ltd. Sanwa Buhin Co., Ltd. Topy America, INC. Topy Precision Mfg., INC. Topy Fasteners (Thailand) Ltd. Qingdao Topy Machinery Co., Ltd. Fujian Topy Autoparts Co., Ltd.

Powers Business

Business results

We have changed the supply destination of electricity to Power Producer and Suppliers, and have continued stable electric supply following our business plan. Net sales were ¥10,626 million (year-to-year comparison, 59.9% increase) and operating income was ¥2,475 million (compared with ¥904 million operating deficit a year ago).

Net sales,operating income

Net sales,operating income

2016 Sales Ratio

Issues to be addressed

The Company will continue to focus its efforts on maintaining stable operation systems and supplying power in a stable fashion through power generating facilities that give the maximum consideration to environmental friendliness.

Other Businesses

Business results

The Topy Industries Group also engages in manufacture and sales of synthetic mica used in cosmetics and other products, the manufacture and sales of crawler robots, wholesale electricity utility, indoor and outdoor sign systems, civil engineering and construction, leasing of real estate such as Topy-Rec Plaza (Minami-Suna, Koto-ku, Tokyo), and the operation of the sports club OSSO. Net sales were ¥7,378 million, and operating income was ¥1,474 million.

Net sales,operating income

Net sales,operating income

2016 Sales Ratio

Research and development activities

We are actively promoting university-industry cooperation for R&D in new areas. Our Science Division has been involved with the development of ultra-thin, lightweight LED signs and new products using high gloss synthetic mica. As for crawler robot, we are working to develop various types of robots for specific purposes. At our R&D center, we are proceeding with the development of thermal spraying technology of metal glass.
We spent ¥597 million for these activities during this fiscal year.

Issues to be addressed

We will work to expand business through the development of products that satisfy the needs of customers in the course of developing a wide range of businesses, such as synthetic mica, crawler robots, and a variety of services.

Companies involved in this business segment
Manufacturing: Topy Industries, Ltd. Topy Enterprises, Ltd. Akemi Electric Power, Ltd. Sales and services: Topy-Rec, Ltd.