Nachi Launches Three-Year Capital Investment Project

Nachi-Fujikoshi Corp. (Japan) revealed it is planning to dramatically increase its capital investment schedule via a three-year, USD $233 million program. Targeting both its automotive bearing and hydraulics business segments, the new program is designed to improve manufacturing systems across all of its facilities worldwide. The company did not release numbers for the expected effect in 2004 and 2005. However, by the end of 2006, Nachi projects the program will be driving operating profits up by 50%, to $107.2 million, supporting a sales improvement of 8%, or $1.5 billion. Sales outside of Japan are projected to grow the fastest; 36% of the company's total sales are now outside Japan, and that is expect to reach at least 40% by the end of 2006. Earlier this month, Nachi said it expects to post a USD $55 million profit for the fiscal year ending November 30, 2003, up over 190% from fiscal 2002. In the first half, Nachi reported net income of $1.6 million.