Sankyo-Tateyama Holdings Targets to Double Profit for F2006

Toyama based Sankyo-Tateyama Holdings posted unfavorable sales and profits in fiscal 2005 ended May 2006, the 3rd year since Sankyo Aluminium Industry and Tateyama Aluminium Industry integrated their businesses. The consolidated net sales decreased by 0.7% to 340.6 billion yen, the recurring profit by 73.3% to 2.2 billion yen and the net profit by 77.3% to 1.5 billion yen in fiscal 2005 from the previous year. The firm estimates 353 billion yen of net sales, 5 billion yen of recurring profit and 3 billion yen of net profit for fiscal 2006 to May 2007. Hideo Yomei, president of Sankyo-Tateyama Holdings, explained the management plan to improve the profitability.Mr. Yomei explained that the firm was suffered from 5.7 billion yen of material costs up in fiscal 2005 due to the sharp increase of primary aluminium ingot and steel prices and that the firm estimates 7.5 billion yen of another material costs up for fiscal 2006. He said the firm aimed to cover 8.5 billion yen of increasing costs by the improvement of the selling prices and 4.7 billion yen by cost cuts in the production processes and the material procurement.Mr. Yomei said the firm would raise the selling price for aluminium extrusion for orders received in fiscal 2006 along the price fluctuation of primary aluminium ingot. He said the price hike for housing materials completed at the end of July. The firm implemented the hike for building materials for orders received in and after June and for exteriors in and after June.As to the capital investment in fiscal 2006, he said, the firm plans 9.2 billion yen as total investment for fiscal 2006, 2.1 billion yen of which is for the maintenance of extrusion coating equipment in Fukuoka plant, 2 billion yen of which is for metal moldings, 1.4 billion of which is for the refinement of bath related products and 1 billion yen of which is for asbestos disposal.