Business by Segment

Business by Segment

Net sales:\237,677(Millions of yen)

Steel Business

Business results

In the steel industry, production of crude steel fell below that of the previous year due to decline in demand. In the electric furnace industry, demand for domestic construction was steady during the first half of the year, but unfortunately weakened during the latter half of the year. Furthermore, difficult conditions continued overall due to increase in electricity and other costs despite decline of our main material cost, steel scrap price, from the middle of the year.
Under such circumstances, the Topy Industries Group has endeavored in the formulation of appropriate sales price structures and intensive cost reduction. This resulted in net sales of ¥72,247 million (year-to-year comparison, 1.0% decrease), and operating income of ¥3,381 million (year-to-year comparison, 107.4% increase).

Net sales

Net sales

2015 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 ¥34 million on these R&D activities.

Issues to be addressed

We will aim to become the leading company in the industry by taking advantage of our distinctive special section steel and preparing a cost competitiveness of the highest domestic level. We will drastically lower electric power consumption rate, improve productivity and quality, reduce environmental effects, enable self-support of iron, and strengthen our cost competitiveness by ensuring the operation of the new steel making facilities. Furthermore, all companies of the Topy Industries Group will come together to promote efficiency to obtain improvement in revenue by reducing the cost of our integrate production from raw materials to product delivery.

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

The automobile industry saw volume of domestic production decrease below that of last year due to the downfall in demand after the tax raise. On the other hand, automobile production was strong in North America. The demand in the construction machinery industry remained low as the Chinese and South East Asian markets and demand for mining machinery stagnated.
Under such conditions, the sales of wheels for passenger cars and trucks for the Topy Industries Group were steady. This resulted in net sales of ¥151,025 million (year-to-year comparison, 2.4% increase). Despite continued improvement actions that were taken, operating income remained at ¥6,919 million (year-to-year comparison, 6.0% decrease) due to decrease in sales volume of construction machinery components in the Chinese and East Asian markets, and due to effects from severe competition.

Net sales

Net sales

2015 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 ¥528 million for R&D during this fiscal year.

Issues to be addressed

Strengthen our presence as a “world top class general wheel manufacturer” and work toward establishing our status as a “general undercarriage components manufacturer of construction machinery”. In addition, we will endeavor further cost reduction to enable a profitable structure even under difficult business conditions. Also, we will continue to work in the formulation of a global optimum production structure by expansion of our oversea manufacturing sites and by strengthening cooperation with our global 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.

Other Businesses

Business results

The Topy Industries Group also engages in wholesale electricity utility, indoor and outdoor sign systems, manufacture of synthetic mica used in cosmetics etc., manufacture and sales of LED display and crawler robots, civil engineering and construction, real estate lease such as “Topy-Rec Plaza” (Minami-Suna, Kotoku, Tokyo), and operation of sports club “OSSO”. Net sales resulted at ¥14,404 million, and operating income was ¥418 million.

Net sales

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2015 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 ¥650 million for these activities during this fiscal year.

Issues to be addressed

We will work toward expanding our business by product development that satisfies the needs of our customers in all areas of energy, service etc. and during other various business developments.

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