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Financial Information:
Annual Report 2005
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| Precision
Machinery and Parts |
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NSK’s
Precision Machinery and Parts Business supplies linear
motion products such as ball screws and linear guides, and
mechatronics products such as photofabrication equipment for
liquid crystal display (LCD) color filter production, XY tables and
megatorque motors.
NSK meets the needs for cutting-edge technologies from customers
around the world by supplying linear motion products vital
for high-speed and precision positioning, and mechatronics products
developed using the ultra high-precision positioning technologies
acquired from our linear motion products. |
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Review
of Operations
Demand from the Japanese general industrial sector and
machine tool manufacturers remained strong throughout
the year. Although demand from the domestic semiconductor
and LCD production equipment sectors
entered a phase of inventory correction in the latter half
of the year, full-year sales were still higher year on year
thanks to a recovery in demand in the Americas. Sales of
photofabrication equipment for LCD color filter production
saw a sharp increase, driven by rising exports to Asia.
As a result, total segment sales increased 36.4% to ¥64.2
billion. The segment also returned to full-year profitability
for the first time in four years, posting operating
income of ¥4.8 billion. The operating income margin
rose to 7.4%.
Outlook
and Major Initiatives
While the outlook in fiscal 2005 remains uncertain, we
expect demand from the general industrial sector and
machine tool manufacturers to remain strong. We also
expect a recovery in semiconductor and LCD production
equipment-related demand from the second half
of the year.
NSK holds the leading share in the global market for
ball screws. This product accounts for roughly one-third
of total sales in our Precision Machinery and Parts business.
Leveraging the strengths we have accumulated in
this product segment, we are offering our expertise in
the production of low-noise high-speed ball screws to
machine tool manufacturers, with the goal of making our
ball screws the de facto global standard. We also
launched the BSS series of low-noise high-speed ball
screws as part of these efforts.
In photofabrication equipment for LCD color filter
production, our focus will be on realizing higher processing
speeds and superior positioning precision to keep
pace with capital investment trends at LCD manufacturers
and the shift to larger LCD glass panels. We expect
Asian LCD panel manufacturers to continue investing
aggressively in fiscal 2005.
One of our priorities has been to make the Precision
Machinery and Parts business more resilient to external
factors such as fluctuations in demand. Going forward,
we will accelerate our Advanced Production System
(APS) production innovation activities to bring down our
breakeven point and build an even more profitable operating
structure.
Lastly, we will strive harder to increase sales to customers
in new markets for NSK such as automobile production
equipment, and the medical and food industries.
We will also continue to steadily boost the ratio of segment
sales generated by new products by reinforcing
product development activities.
Topics
Sharing Production Expertise in Ball Screws
NSK has agreed to share its manufacturing expertise in
high-speed low-noise ball screws with several major
Japanese machine tool manufacturers. In doing so, we
hope not only to increase recognition for our BSS Series
of ball screws, which use our unique ball circulation
method, but also to make these products the de facto standard in
the industry.
Reorganization of Domestic Precision Machinery
Production Sites
NSK produces ball screws at two locations in Japan:
Maebashi and Kyushu. We have nearly completed reorganizing
production at these two sites. When completed,
this realignment will allow NSK Kyushu Co., Ltd. to
focus on the production of small to standard type ball
screws, while the Maebashi Precision Machinery & Parts
Plant, operated by NSK Precision Co., Ltd., will specialize
in producing medium to large type ball screws. In this
way, we are working to reduce production lead-times
and inventories, and further accelerate profitability
improvement activities in the Precision Machinery and
Parts Business.
New
Products
HTF-SRC Series of High-speed, High-load Ball
Screws
Growing demand for injection molding machines that have
ultra thin, ultra high-precision molding capabilities and
high-speed, high-acceleration processing performance, is
translating into greater demand for ball screws that can
rotate at significantly higher speeds. In response, NSK revolutionized
its ball rotating structure to develop the HTF-SRC
series of ball screws, which boasts a maximum RPM (revolution
per minute) more than double that of existing products
and a significant reduction in noise levels.
Ultra High-accuracy HS-Type Series of Linear
Guides
This model has reduced vibration, which affects operational
accuracy, to one-third that of conventional products.
We also more than doubled the length of the
product, reduced friction and made the cross-section of
the linear guides more compact, making them more
compatible for use in precision measuring instruments
such as 3D-measuring devices, and semiconductor and
LCD production equipment.
Compact FA Series of High-speed,
Low-noise Ball Screws
Our BSS series of high-speed, low-noise ball screws
launched in 2003 has proved highly popular with customers.
In response, we now offer the Compact FA Series
of ball screws as a standard inventory product.
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