JUKI Corporation has been advocating for higher market share of high-value-added mounters, focusing on high-speed mounters. The company has identified it as one of its priority strategies for the Industrial Products & Systems Business in the second half of FY2022 (July to Dec. 2022). Moreover, it has been cultivating new application areas for automated warehouses and inspection machines in the non-mounting field.

Financial Performance

In the first half of FY2022, the company posted sales of 58.577 billion yen (US$440 million), representing 24.4 percent year-on-year increase; operating profit of 1.558 billion yen (US$11.7 million), lower 18.3 percent annually; recurring profit of 1.581 billion yen (US$11.8 million), lower 7.8 percent year-on-year; and quarterly cumulative profit of 846 million yen (US$6.35 million), lower 30.7 percent on the year. Of these, the Industrial Products & Systems Business reported growth in revenue with sales of 19.097 billion yen (US$143 million), up by 6.2 percent year-on-year, and in profit on the recurring profit base of 1.246 billion yen (US$9.35 million), higher by 10.2 percent on the year.

Shinsuke Uchinashi, President, Representative Director, and Chief Operating Officer of JUKI, said, “Our company’s sewing machine business reported considerable growth in earnings, reflecting the recovery of demand in the apparel market. In particular, the Asian market was brisk. With industrial products, income from industrial devices increased in the United States and countries in Europe and Asia. However, sales of the entire business were sluggish as affected by the lockdown in China and the delay in market supply of new products.”

“Nonetheless, sales of the group businesses, including other undertaking, increased. As a result, the industrial products business reported increases in income and profit as a whole,” mentioned Uchinashi.

Positive Sales Prospects

For the entire FY2022, JUKI expects total sales of 116 billion yen (US$870.6 million) up from 101.3 billion yen (US$760.25 million) in FY2021. For the Industrial Products & Systems Business, the company expects sales of 42.4 billion yen US$318 million) compared with 37.8 billion yen (US$284 million) in FY2021.

Optimistic about industry prospects, Uchinashi said, “The market continues to be brisk. So, we will strengthen sales and production to meet the strong demand.”

Targets for Business Segment

FY2022 is the last year of the company’s medium-term management plan, Value up 2022. The company has been strengthening business foundation that supports growth, setting its sights on the next medium-term management plan (FY2023 to FY2025).

Particularly, in the Industrial Products & Systems Business, JUKI will further promote JUKI Smart Solutions globally in the second half of the year. The company will work to expand its market share by promoting the RX-8 high-speed compact mounter. This model, featuring 100,000cph placement speed, realizes significant improvement of productivity.

Builds up Non-mounting Business

In the non-mounting business, the company has been deploying automated warehouse for electronic components. The company offers it to different industries, such as plastic molded components and metal components, under the JUKI Smart Solutions. These efforts have been producing positive results.

Italy-based ESSEGI Automation S.r.l. developed the automated warehouse. Through partnership, JUKI manufactures the warehouse at the JUKI Industrial Equipment Technology Corporation.

As part of business expansion of the non-mounting area, JUKI has brought to market the SE1000 visual inspection machine. It detects defects of metal components of automobiles and measures dimensions. The company has begun to sell the visual inspection machine to automobile and machinery factories on full scale. JUKI has developed the visual inspection machine jointly with XTIA, Inc.

SE1000 can inspect various components up to 600(W)×590(D)×300(H)mm with high inspection accuracy of 12µm. This feature has been achieved by applying an original optical technology. The company has been expanding sales targets of the machine to the automotive components and semiconductor fields.

Uchinashi is confident of the potential of the machine amid present trends. He says, “In the manufacturing industry, labor shortages have been an issue. Both the automated warehouse and inspection machine contribute to deskilling, labor saving and improved efficiency in processes that require manpower.”

JUKI targets to turn the non-mounting segment into a main business. It plans to increase sales ratio from 32 percent in FY2022 to 47 percent in FY2025.

Group Business

In general, JUKI’s group businesses encompass processing and manufacture of components for industrial products and sewing machines. In addition, they are also producing products consigned from external companies. They have been expanding business through one-stop undertaking, including development and design to procurement of materials and components.

JUKI has also developed a screw fastening robot, Multi-task robot system, and a compact machining center.