Overview

As the Industrial Division experienced a major decline in orders during the economic doldrums following the global economic crisis, we had expected a decline in orders during the year under review. However, sales and orders were both up year on year, owing to the inclusion of the LEWA Group, which we had acquired during the preceding fiscal year, in the consolidated accounts.

In the pump segment, we began seeing signs of a recovery, centered on energy-related industries in emerging markets. Nevertheless, in Japan capital investment remained sluggish and the pace of economic recovery slowed in Europe and the United States, affecting performance in this category.

In the water conditioning systems and measuring equipment segment, we received orders for water conditioning systems for upgrades at existing power plants in Japan, we saw a jump in inquiries from Asia involving integrated production processes for multilayer ceramic substrates, and capital investment related to electronic component manufacturing systems was brisk. The Japanese market for particle size measurement equipment also recovered. However, a small portion of these orders were cancelled or postponed as a result of the March 11 earthquake.

Businesses

This division handles the manufacture, sales and maintenance of specialty pumps used in a wide variety of fields, from petrochemicals, liquefied gas and other energy-related areas to water, sewerage and food-product applications.

Our mainstay products are leak-free canned motor centrifugal pumps, high-accuracy metering pumps, high-speed centrifugal pumps and cryogenic pumps. The division also handles the manufacture, sales and maintenance of water conditioning systems for thermal and nuclear power plants, high-pressure processing equipment for the production of precision electronic parts and particle size analyzers.

Overview

The outlook for Nikkiso’s business targeting the aerospace industry is becoming clearer. Development on a new program for Airbus went according to schedule, and owing to proactive marketing and sales activities, the division’s sales rose compared with the preceding fiscal year. In addition, we have improved sales conditions and manufacturing costs to cope with the rapid appreciation of the yen against other currencies. Moreover, NVI’s shipments of Boeing 777 blocker doors commenced in March 2011. As a result of these activities, sales and orders increased.

Businesses

Nikkiso’s Aerospace Division provides consulting, development and design services for CFRP components. The division also employs highly advanced manufacturing system featuring excellent quality control. The principal products of this division are components for thrust reverser systems in the engine nacelles of commercial aircraft, such as cascades and blocker doors.

Overview

During the year, revisions to the Japanese medical compensation system affected sales of dialysis machines and their related consumables. During the first half, the division enjoyed brisk sales of new products, but in the second half delays in the development of dialysis machines resulted in sluggish sales in Japan.

However, helped by sales of Fresenius-made dialyzers, as well as of blood tubing lines and other consumables, sales for the division remained essentially unchanged year on year.

Overseas, sales of dialysis machines in Asia were strong, and a joint venture in China progressed steadily. Sales in Europe also showed signs of recovery.

Owing to these factors, sales and orders both remained approximately the same as in the previous year.

Businesses

This division conducts R&D and manufactures, sells and maintains a full range of medical products and pharmaceuticals, including dialysis machines, dialyzers, blood tubing lines, powdered dialysis concentrates and blood glucose controllers.