Shin Nikkei Aims Profit Regain in 2 Years

Tsuyoshi Nakajima, president of Shin Nikkei Company, attended a press conference on 8 July and represented an intention to regain operating profit through fiscal 2008 ending March 2009 and recurring profit in fiscal 2009 by business restructures, despite of worse market condition of building and housing materials. As to the management cooperation with Sankyo-Tateyama Holdings, they established a promotion committee and started practical discussions to gain early synergies, said Mr. Nakajima.Shin Nikkei and Sankyo-Tateyama plans to cooperate in mutual OEM, material purchase and product distribution. They expect total cost cut effect at 10 billion yen for 3 years, explained Mr. Nakajima.He referred to Shin Nikkei’s financial account estimation as well. The firm estimates the annual revenue at 157 billion yen, operating profit at zero and recurring loss at 2.5 billion yen for fiscal 2008. The firm aims to gain annual revenue at 160 billion yen, operating profit at 2.5 billion yen and recurring profit at 500 million yen in fiscal 2009. Mr. Nakajima said the firm plans to recover the recurring profit to 7.3 billion yen in fiscal 2010 thanks to the restructuring effect, market recovery and cost down effect.