Ceramic Products Business
Director and Senior Vice President; Group Executive, Ceramic Products Business GroupAtushi Matsuda
Stronger Exhaust Regulations Create Strong Growth for Core Products
In fiscal 2017, increased truck sales on the Chinese market and the impact of the more stringent exhaust regulations in the EU contributed to strong growth in NOx sensors and other automotive products. On the other hand, however, increased amortization and development expenses, combined with temporary expense increases such as new plant startup costs, contributed to an anticipated increase in revenue but decrease in profits, with net sales of 240.7 billion yen and operating income of 56.7 billion yen. Please note that, from April 2018, industrial process business has been transferred to the newly established Process Technology usiness Group, and the above results represent a new segment base.
Projections for this new segment base in fiscal 2018 anticipate increased revenues and profits compared to the previous period, with net sales of 267 billion yen and operating income of 60 billion yen.
Sales of passenger vehicles in China and Asia's emerging markets and trucks in the US market are increasing, while exhaust regulations in Europe are getting more stringent. As a result of these trends, shipments of HONEYCERAM to China and Asia's emerging markets are expected to increase, and demand for gasoline particulate filters (GPFs) for passenger vehicles in Europe is expected to ramp up significantly.
Because of further market share held by silicon carbide diesel particulate filters (SiC-DPFs), and because the number of NOx sensors per vehicle will increase, revenue is expected to increase for each.