JVC 2005 Annual Report Download - page 23

Victor Company of Japan, Limited 21
Pursuing High Quality and Originality
Leveraging its technological prowess and original manufac-
turing processes, JVC has created fluid dynamic bearing
motors for hard disk drives (HDDs) that boast high rotation
speeds and outstanding shock resistance. Our motors
have earned a solid reputation in the market for their high
quality and have become core products in the
Components & Devices segment. Under the Leap Ahead
21 plan, this segment will take part in creating distinct
products by working to develop key devices—including
motors, optical pickups, and high-density multilayer
PWBs—that bring greater added value to our AV products.
Realizing the Benefits of Structural Reform
Since fiscal 2004, the Components & Devices segment
has fought hard to get earnings back on track, and in the
first half of fiscal 2005, we implemented major structural
reforms designed to return the segment to profitability.
One critical point that we concentrated on was to consoli-
date our manufacturing bases for deflection yokes for
cathode ray tube (CRT) computer displays in Japan and
overseas into one overseas base in response to contrac-
tion in the market for these products. Through this and
other initiatives, we strengthened the segment’s business
base, bringing its operations back into the black in the lat-
ter half of fiscal 2005.
Looking at sales, in the segment’s mainstay motors,
fluid dynamic bearing motors for HDDs recorded sales and
sales volumes that outstripped our targets; however, due
to the shrinking market and fierce price competition, sales
of motors for floppy disk drives and for optical disk drives
were sluggish. Sales of optical pickups exceeded our tar-
gets, thanks to strong sales of optical pickups for car CD
receivers. Multilayer PWBs, primarily specialized products
for AV equipment, experienced a decline in sales and an
initial loss stemming from structural reforms and the revi-
sion of manufacturing processes to create high-density
products; however, we have built a strong foundation for
future recovery by improving the production framework for
these products.
As a result, although the Components & Devices seg-
ment’s sales decreased 30% from the previous fiscal year,
manufacturing cost reductions and the benefits of struc-
tural reforms led to the posting of operating income in the
fourth quarter, which, in turn, resulted in a substantial
reduction in the segment’s operating loss from the one in
fiscal 2004.
Expanding Our Motors Operations
In fiscal 2006, we will establish a framework to increase the
production of fluid dynamic bearing motors for HDDs,
which lie at the core of the segment’s growth strategy. To
meet the needs arising from the microminiaturization of
HDDs, we will enhance our lineup of motors for 2.5-inch
and even smaller HDDs. In deflection yokes, we anticipate
ongoing contraction in the market and will rework opera-
tions to better reflect this trend. Furthermore, we will work
to further expand sales of optical pickups for car CD
receivers, proactively develop optical pickups for car DVD
receivers, and achieve a recovery in sales of high-density
multilayer PWBs. Through these efforts, we aim to boost
segment sales and record an operating profit in fiscal 2006.
Yoshitaka Iriuchijima
President, Components & Device Company
Fluid Dynamic Bearing Motors for Hard Disk Drives
JVC has leveraged ultrahigh precision bearings and assembly technology
to create low-noise, long-life, shock-resistant motors for hard disk drives.
Optical Pickups for Car CD Receivers
This high performance optical pickup offers industry-leading heat and
vibration resistance and outstanding reliability.