shimadzu

Japanese airplane parts maker looks to build business with Airbus - International Herald Tribune Business with Reuters iht.comBusinessCultureSportsOpinion AMERICASEUROPEASIA/PACIFICAFRICA/MIDDLE EAST TECH/MEDIASTYLEHEALTH TRAVELPROPERTIESBLOGSDISCUSSIONSSPECIAL REPORTSAUDIONEWS Morning home delivery - save up to 65% SEARCH AdvancedSearch Japanese airplane parts maker looks to build business with Airbus Reuters Published: March 21, 2008 E-Mail Article Listen to Article Printer-Friendly 3-Column Format Translate Share Article Text Size KYOTO: Shimadzu, a Japanese analytical instrument and airplane component maker, has held preliminary talks with Airbus after repeated delays of plane deliveries by its client, Boeing. Cuts to the Japanese defense budget have hurt Shimadzu's aircraft equipment business, prompting it to go after orders for control systems at Boeing. But Shimadzu's president, Shigehiko Hattori, said Friday that the company now needed to expand its client base. While its shipments to Boeing are small, an expected delay for the U.S. plane maker's new 787 Dreamliner would not help matters, Hattori said. "Initial research costs are huge in the airplane business, and returns don't come in until seven years later," he said after a news conference about the company's midterm plans. "Delays hurt." Shimadzu officials including Hattori have met with the head of Airbus's operations in Japan, he said, without providing further details. Today in Business with Reuters Samsung Electronics profit rises 37% in first quarter TCI rejects Japan's recommendation on J-Power stake In surprise, Ford swings to profit Airbus, which hopes to supply more aircraft to Japan Airlines and All Nippon Airways, has said it aims to procure more parts from Japanese companies. Shimadzu, which also supplies turbomolecular vacuum pumps to makers of semiconductor-processing equipment like Applied Materials and Lam Research, expects total sales to rise 13 percent over the next three years to ¥320 billion, or $3.22 billion, in the year ending March 2011. Strong demand for its pumps, depositors and digital panels - used to make products ranging from microchips to solar panels to tools to take mammograms - as well as demand for clean air and safe food, would help drive growth, Hattori said. But he said that airplane equipment sales would fall 17.7 percent to ¥24.7 billion in 2011, compared with its forecast for the year ending this month. Wall Street analysts expect a delay of at least six months for Boeing's new lightweight Dreamliner, due to last-minute design changes. That could mean delivery would begin in the second half of 2009, about 15 months behind the original schedule, which the U.S. plane maker has already pushed back twice. Shimadzu is stepping up development and production in China of equipment to measure air pollutants and pesticides, betting that demand from China would push the company's overseas sales above the 40 percent of total sales expected this year. It also hopes to expand into equipment to measure fuel efficiency and pollutants in exhaust. It now plans ¥35 billion in capital spending in the next three years, including ¥6 billion on two new plants to make X-ray equipment and other medical devices, Hattori said. The company will keep cash on hand for potential acquisitions though he added that the company was not now in talks to buy a rival. 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