NIC Autotec, Inc.
5742・Standard Market・Nonferrous Metals
FA Division
The Company's core segment responsible for aluminum frame manufacturing and FA equipment development
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥5,018 million | ¥5,429 million | ↓ |
| Segment operating income/loss | ¥(73) million (operating loss) | ¥156 million (operating income) | ↓ |
| Segment assets | ¥4,564 million | ¥5,744 million | ↓ |
| Depreciation | ¥229 million | ¥251 million | ↓ |
| Orders received | ¥4,415 million | ¥5,803 million (previous period) | ↓ |
| Order backlog | ¥705 million | 53.9% of previous period | ↓ |
Business Details
This segment centers on the development, design, manufacture, and sale of the Alpha Frame System, an aluminum alloy structural component, and also handles industrial products utilizing the system, such as FA Equipment (Cleaning, Inspection, Transport, Packaging), clean booths, and machine covers. It serves a wide range of manufacturing customers, including those related to automobiles, semiconductors, and FPD manufacturing equipment, and provides high-value-added solutions combining the design support services Kakucha™ and Marking System™. This is the core business accounting for approximately 80% of the Company's total sales.
Recent Overview
Sales and profit both deteriorated significantly due to a slowdown in capital expenditure related to semiconductors, FPDs, and EVs
In FY2026 (ending March 2026), net sales of the FA Division decreased to ¥5,018 million (92.4% of the previous period), and segment income fell into an operating loss of ¥73 million (compared to operating income of ¥156 million in the previous period). Orders for the Alpha Frame System, Kakucha™, and Marking System™ from general customers expanded steadily, and stable orders for major customer projects and large structures also contributed; however, a temporary slowdown in capital expenditure by companies related to semiconductors, FPD manufacturing equipment, and EVs/secondary batteries significantly pressured performance. Leading indicators also deteriorated, with orders received at 76.1% and order backlog at 53.9% of the previous period. Sales to the major customer, Canon Inc., increased to ¥1,572 million (from ¥1,532 million in the previous period), maintaining a high proportion of the segment's total sales.
Key Products
Growth Drivers
- Continued expansion of demand for FA equipment driven by rising automation and labor-saving needs across the manufacturing industry as a whole
- Increase in the number of orders and expansion of repeat orders from general customers through design-to-assembly support utilizing Kakucha™ and Marking System™
- Recovery in capital expenditure by companies related to semiconductor and FPD manufacturing equipment (expanding demand for AI and advanced semiconductors, next-generation display development)
- Strengthening of sales and manufacturing systems in anticipation of growing demand for clean rooms and FA-related equipment
- Steady trend in labor-saving and automation investment (demand in response to labor shortages)
Risks
- Slowdown in orders due to the capital expenditure adjustment phase among semiconductor-related, FPD manufacturing equipment-related, and EV/secondary battery-related companies (leading indicators deteriorated, with orders received at 76.1% and order backlog at 53.9% of the previous period in FY2026)
- Profit pressure from increased selling, general and administrative expenses (the FA Division fell into a segment operating loss of ¥73 million in FY2026)
- Continued rise in raw material prices due to geopolitical risk and yen depreciation (affected by cost increases exceeding the Company's assumptions)
- Risk of sales concentration in the major customer, Canon Inc. (accounting for approximately 31.3% of FA Division sales in the fiscal year under review)
- Impact on strengthening development capabilities and production systems due to delays in securing and developing human resources
Last updated: June 23, 2026