Sankyo-Tateyama HD Launches New 3-Year Management Plan

Sankyo-Tateyama Holdings announced the new 3-year management plan on Wednesday. The company targets consolidated net sales at 277 billion yen with consolidated recurring profit at 6.8 billion yen and dividend payout ratio at 30% for the final fiscal year of the plan ending in May 2012. During the 3 years, the company will downsize the group’s employee number to 9,600. The firm aims to shift from the business reorganizing phase to the profitable growth phase, especially by the revival of the architectural material business.

Sankyo-Tateyama Holdings optimizes management resource utilization during the 3 years. In detail, the firm will implement downsizing of workforces, reorganization of plants and subsidiaries, and streamlining of suppliers.

At the same time, the company tries to enhance “number-one and only-one” businesses. The firm expects the growth of renovation business in the architectural material segment, while solar energy, LED illumination and weight-lightening technology utilizing aluminium and magnesium in the non-architectural-material segment.

Sankyo-Tateyama Aluminium, a subsidiary of Sankyo-Tateyama Holdings, aims net sales at 195 billion yen and recurring profit at 4.4 billion yen for the final fiscal year of the 3-year plan. Sankyo Material targets net sales at 24.8 billion yen with recurring profit at 1 billion yen while Tateyama Advance aims 29.5 billion net sales with 1.3 billion recurring profit.

Meanwhile, the group expects cost reduction effect at total 15.5 billion yen for 2 years by May 2011 through the restructuring measures such as plant integration and workforce downsizing. The effect for the first year is estimated at 13 billion yen.

For a fiscal year ended in May 2009, Sankyo-Tateyama Holdings posted consolidated operating loss at 7.6 billion yen, recurring loss at 9.3 billion yen and net loss at 19.2 billion yen. The company posted net loss for 2 fiscal years in a row.