Sankyo-Tateyama Holdings Announces Restructure

Sankyo-Tateyama Holdings Group announced on Wednesday the firm revised the mid-term plan target downward to 11.5 billion yen for the recurring profit for the year to May 2009 compared with original 19 billion yen. The firm expects the higher aluminium ingot price reduces the profit. The firm tries to improve the cost structure by reducing the plant from current 12 to 9. The firm reported 9.7% lower recurring profit for the year to May 2007 from previous year due to higher raw materials cost and integration cost. The firm expects the higher profit for the year to May 2008 through optimized operations. The firm expects the cost increases by 11.3 billion yen for aluminium ingot and by 1.2 billion yen for subsidiary materials for the year to May 2009 compared with original estimate. The firm tries to reduce the cost by annual 2.45 billion yen through the plant integration.