Cost Reductions and Profitability Improvement through LAA Restructuring
First written in FY2019-Q2. 10 of 15 entries say "Advanced", first in FY2020-Q1. Latest entry: FY2026.
0 other companies' latest entry also says "Other".
- FY2026European restructuring continues and losses widenAnnual report
「In Europe, revenue declined from the previous fiscal year, while the operating loss widened partly because of higher outsourcing costs paid to other locations. The company will continue to focus on sales activities to win projects in Europe in coordination with the United States and other locations, while working to improve profitability by raising utilization rates.」
While advancing the reorganization and cost reductions at the European subsidiary, the operating loss widened during the period due mainly to higher outsourcing costs. Business structure improvement costs associated with the review of the European organizational structure and staffing allocation were also recognized. - FY2025-H1AdvancedAnnual report
「In terms of earnings, the loss narrowed as a result of cost reductions. Inquiries have recently been increasing, and the company is strengthening its organization by hiring sales staff in Europe, with a focus on expanding orders.」
At the European subsidiary, the loss narrowed as a result of cost reductions, while organizational strengthening through the hiring of sales staff is also under way. - FY2024Full-year increase in business structure improvement costsAnnual report
「Business structure improvement costs of ¥166.940 million」
Business structure improvement costs associated with the reorganization of the European and U.S. subsidiaries increased from ¥26.651 million in the previous fiscal year to ¥166.940 million. The review of the organizational structure and staffing allocation is continuing. - FY2024-Q3Increase in business structure improvement costsAnnual report
「Business structure improvement costs - ¥148.495 million」
The company recognized ¥148.495 million in business structure improvement costs as a result of the review of the organizational structure and staffing allocation associated with the reorganization of the European and U.S. subsidiaries. This was up from ¥26.619 million in the first nine months of the previous fiscal year. - FY2024-Q2AdvancedAnnual report
「Business structure improvement costs - ¥147.402 million」
The company recognized ¥147.402 million in business structure improvement costs as a result of the review of the organizational structure and staffing allocation associated with the reorganization of the European and U.S. subsidiaries. - FY2024-Q1AdvancedAnnual report
「Business structure improvement costs - ¥104.293 million These costs arose from the review of the organizational structure and staffing allocation as the reorganization of the European subsidiaries progressed.」
As the reorganization of the European subsidiaries progressed, the company recognized ¥104.293 million in business structure improvement costs associated with the review of the organizational structure and staffing allocation. - FY2023-Q3AdvancedAnnual report
「Business structure improvement costs - ¥26.619 million These costs arose from the review of the organizational structure and staffing allocation as the reorganization of the European and U.S. subsidiaries progressed.」
As the review of the organizational structure and staffing allocation associated with the reorganization of the European and U.S. subsidiaries progressed, the company recognized ¥26.619 million in business structure improvement costs. - FY2021AdvancedAnnual report
「In the United States, the company achieved stable operating profitability from August 2020, together with the benefits of greater organizational and operational efficiency.」
The full-year effects of strengthening LAA's sales organization, improving organizational and operational efficiency, and restructuring contributed to a substantial operating profit after amortization of goodwill. - FY2021-Q3AdvancedAnnual report
「As a result, the benefits of the turnaround following the 2018 acquisition of Linical Accelovance America, Inc. emerged, and the company achieved operating profitability before goodwill amortization for the first nine months of the current fiscal year.」
The post-acquisition turnaround of LAA progressed through the execution of hours for existing orders, a return to operating profitability from August onward, and a return to operating profitability before goodwill amortization. - FY2020AdvancedAnnual report
「Although legal fees were incurred during the current period for negotiations and other matters concerning the closing price adjustment with the seller in connection with the acquisition of the U.S. subsidiary, SG&A expenses decreased to ¥1,882 million, down 6.6% year on year, as costs related to the acquisition of the U.S. subsidiary incurred in the corresponding period of the previous year were no longer incurred and personnel expenses, rent, and other costs declined as restructuring of the U.S. subsidiary progressed.」
As LAA’s restructuring progressed, personnel expenses, rent, and other costs declined, resulting in a 6.6% year-on-year decrease in SG&A expenses. - FY2020-Q3AdvancedAnnual report
「Although legal fees were incurred during the current period for negotiations and other matters concerning the closing price adjustment with the seller in connection with the acquisition of the U.S. subsidiary, SG&A expenses decreased to ¥1,882 million, down 6.6% year on year, as costs related to the acquisition of the U.S. subsidiary incurred in the corresponding period of the previous year were no longer incurred and personnel expenses, rent, and other costs declined as restructuring of the U.S. subsidiary progressed.」
As LAA’s restructuring progressed, personnel expenses, rent, and other costs declined, resulting in a 6.6% year-on-year decrease in SG&A expenses. - FY2020-Q2AdvancedAnnual report
「Although legal fees were incurred during the current period for negotiations and other matters concerning the closing price adjustment with the seller in connection with the acquisition of the U.S. subsidiary, SG&A expenses decreased to ¥1,264 million, down 9.8% year on year, as costs related to the acquisition of the U.S. subsidiary incurred in the corresponding period of the previous year were no longer incurred and personnel expenses, rent, and other costs declined as restructuring of the U.S. subsidiary progressed.」
As LAA’s restructuring progressed, personnel expenses, rent, and other costs declined. SG&A expenses decreased 9.8% year on year. - FY2020-Q1AdvancedAnnual report
「Net income was ¥129 million, up 56.9% year on year, as the effects of LAA’s cost-reduction measures began to emerge.」
The company disclosed concrete progress on LAA’s cost-reduction measures, with their effects beginning to emerge. - FY2019-Q3SoftenedAnnual report
「The company has been actively pursuing restructuring, including consolidating locations, reducing surplus personnel, and integrating systems. However, the timing of the cost reductions has been delayed, and profit was also below forecast because temporary business structure improvement expenses were recorded for consolidating locations and reducing personnel to accelerate the restructuring.」
Although the company was consolidating locations, reducing surplus personnel, and integrating systems, delays in realizing cost reductions and the resulting temporary business structure improvement expenses led to the shortfall in profit against forecast. - FY2019-Q2First statedAnnual report
「The company is currently pursuing cost-reduction measures, including developing new business and reducing surplus personnel, and the effects of cost reductions through acquiring large new contracts and reducing surplus personnel are beginning to emerge. However, temporary additional costs related to personnel reductions have also been incurred, so the shortfall in revenue against plan has not been offset and both revenue and profit were below the initial forecast. The company believes that the cost reductions from restructuring at LAA will enable it to absorb the amortization of goodwill arising from the acquisition of LAA from the next fiscal year onward.」
The effects of cost reductions from developing new business and reducing surplus personnel are beginning to emerge, and the company indicated that restructuring benefits are expected to absorb goodwill amortization from the next fiscal year onward. However, temporary additional costs related to personnel reductions have also been incurred.