2010
 Announcement on Dissolution of Joint Venture
Ichikoh Industries, Ltd. (headquartered in Higashi-gotanda, Shinagawa-ku, Tokyo and hereinafter referred to as “Ichikoh”) and Mitsuba Corporation (headquartered in Hirosawa-cho, Kiryu, Gumma and hereinafter referred to as “Mitsuba”) would announce that they have agreed to dissolve the joint venture in the US which was established by both of them in December 2006 and that they have adopted a resolution for the dissolution at their board meetings held today respectively.
May 21, 2010
| 1. |
Background of Dissolution |
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Ichikoh and Mitsuba established the joint venture from a strategic point of view; however, in the wake of environmental changes triggered by the so-called Lehman shock in 2008, Ichikoh and Mitsuba have agreed to a view that turning business around in the future is impossible. Then, through amicable consultation, the dissolution has been decided. |
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| 2. |
Outline of Company before Dissolution |
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(1) |
Name |
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Ichikoh Mitsuba Inc. |
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(2) |
Place |
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Shelbyville, Kentucky, USA （Plant）
Novi, Michigan, USA （Sales, Design and Development Office） |
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(3) |
Representative |
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Edward Grenda, President |
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(4) |
Business |
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1) Manufacture and Sale of Automotive Mirrors
2) Manufacture and Sale of Automotive Small Lamps
3) Manufacture and Sale of Molded and Painted Plastic Components for Automobiles |
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(5) |
Capital |
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US$12 million |
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(6) |
Establishment |
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December 18, 2006 |
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(7) |
Shareholding Ratio |
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Ichikoh 75%
Mitsuba 25% |
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(8) |
Relations of the Company with Listed Companies |
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[Personnel Relations]
3 directors are from Ichikoh and 1 director is from Mitsuba. |
[Business Relations]
Components are traded between Ichikoh and the Company. |
[Financial Relations]
The Company is an Ichikoh’s consolidated subsidiary. |
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(9) |
Business Performance & Financial Conditions of Latest 3 Years |
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in US$
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Term closed Mar. 2007 |
Term closed Mar. 2008 |
Term closed Mar. 2009 |
| Net Assets |
12,023,011 |
9,925,195 |
7,797,222 |
| Total Assets |
23,048,924 |
24,132,909 |
19,855,653 |
| Net Sales |
4,258,253 |
42,590,367 |
30,345,850 |
| Operating Income |
218 |
-2,118,363 |
-2,307,480 |
| Ordinary Income |
23,011 |
-2,097,816 |
-2,127,973 |
| Current Net Income |
23,011 |
-2,097,816 |
-2,127,973 |
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| 3. |
Timetable of Dissolution |
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(1) |
Resolution |
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May 21, 2010 （today） |
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(2) |
Start of Procedures |
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Within this month （plan） |
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(3) |
Completion |
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Around October 31, 2010 （plan） |
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| 4. |
Amount of Loss from the Dissolution and its Impact on Future Business Performance |
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The amount of liquidation loss from the dissolution of the joint venture, along with its impact to the financial results ending March 2011, will be announced by Ichikoh and Mitsuba as soon as it becomes available. |
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| (Reference） Forecast of Consolidated Results of this Term and Results of Previous Term |
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[Ichikoh: announced on May 14, 2010] in million yen
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Consolidated Net Sales |
Consolidated Operating Income |
Consolidated Ordinary Income |
Consolidated Current Net Income |
| Forecast of Consolidated Results （ending Mar. 2011） |
84,700 |
3,900 |
3,800 |
3,000 |
| Results of Previous Term (ending Mar. 2010） |
93,397 |
599 |
2,002 |
-839 |
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[Mitsuba: announced on May 12, 2010] in million yen
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Consolidated Net Sales |
Consolidated Operating Income |
Consolidated Ordinary Income |
Consolidated Current Net Income |
| Forecast of Consolidated Results （ending Mar. 2011） |
188,000 |
5,500 |
4,800 |
1,800 |
| Results of Previous Term (ending Mar. 2010） |
175,522 |
2,176 |
1,874 |
-3,247 |
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*For inquiries concerning this subject, please contact:
Mr. Nobuyuki Take, General Manager Accounting and Financing Dept. Mitsuba Corporation
Email:koho@mitsuba.co.jp
Tel. 0277-52-0113 (direct line)
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