Investing in Japan: AISIN SEIKI announced financial results in FY2019

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AISIN SEIKI, the world largest manufacturer of automatic transmissions


AISIN SEIKI Co., Ltd. headquartered in Kariya, Aichi Prefecture, is a leading auto parts manufacturer with the world's top market share in automatic transmissions. 

 The company develops car parts such as transmissions and brakes, as well as car navigation systems and parking assist systems. The company also develops a cogeneration system for residential use. Although it is mainly affiliated with Toyota Mortar, its advanced products and technological development enable the company to expand its business with automakers around the world.


 On April 30, Aisin Seiki announced its consolidated financial results for the fiscal year ending March 2020. Net income was 24 billion yen, a 78% decrease from the previous fiscal year. Spreading new coronavirus infections amid weak demand for new cars in China and other countries caused plummeting demand for auto parts. 
AISIN SEIKI announced financial results in FY2019

 As for the January-March period of 2020, net income was loss of 22.6 billion yen. It was profit of 26.9 billion yen in the same period last year. For the entire fiscal year 2019, sales were down 6% to 3,784.5 billion yen, and operating income was down 73% to 56.1 billion yen. Looking at operating income by region, it fell into an operating deficit in China and fell by 60% in Japan. The spread of coronavirus infections has reduced operating income by about 30 billion yen overall.

Toyota Motor Group prepares for COVID-19

On April 30, other eight major companies within Toyota Motor Group including Denso Corp also announced declining sales for the fiscal year 2019. 

 All eight companies could not disclose earnings forecasts for the fiscal year ending March 31, 2021 because it was difficult to predict the time of convergence of the new coronavirus in each country and region making it difficult to foresee the business conditions. 

 To cope with those uncertainties, Toyota Group companies including Aisin Seiki, has sought a more solid credit line from banks in view of the prolonged impact of the outbreak. Aisin Seiki added 300 billion yen to secure 400 billion yen in total. The financial bases of each company are sound, but they do their utmost to secure the cash flow of themselves and their small and medium-sized parts suppliers.
AISIN SEIKI announced financial results in FY2019

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