Profit pressure from TLM’s change in fiscal year-end and plant shutdown
First written in FY2018. 3 of 10 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2023-Q3.
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- FY2023-Q3AdvancedAnnual report
「Taisei Lamick Malaysia Sdn. Bhd., formerly a consolidated subsidiary, was excluded from the scope of consolidation from the end of the second-quarter consolidated accounting period following the transfer of shares, which reduced the ownership ratio to 19.8%.」
The previous framework, which assumed that TLM would be consolidated as the entity responsible for local production after the relocation and start-up of its new plant, was changed at the implementation stage through the execution of the share transfer and exclusion from consolidation. - FY2023-Q2ReframedAnnual report
「TLM has worked to establish a regional business base as the hub of the Group’s ASEAN strategy. Under the future ASEAN strategy, to adapt further to the rapidly changing external environment and local needs, the Company will transfer 80.2% of TLM’s shares to SCIENTEX, headquartered in Malaysia, and shift from local production to local procurement.」
The Company is changing the underlying business operating framework from the previous approach of improving profitability and productivity after TLM’s plant relocation to a framework based on the transfer of shares and the shift to local procurement. - FY2021WorsenedAnnual report
「In connection with measures implemented to improve the business structure of consolidated subsidiary Taisei Lamick Malaysia Sdn. Bhd., special retirement payments and other costs incurred were recorded as special losses under business structure improvement expenses.」
Regarding business improvement after TLM’s plant relocation, business structure improvement measures were implemented, and ¥57 million in special retirement payments and other costs was recorded as business structure improvement expenses. - FY2020MitigatedAnnual report
「In overseas markets, despite the impact of yen appreciation and other foreign-exchange factors amid growing economic and trade uncertainty in various parts of the world, the performance of Taisei Lamick Malaysia Sdn. Bhd., which began operating its new plant in the previous fiscal year, improved and revenue exceeded that of the same period of the previous year.」
The filing states that TLM’s performance improved after the relocation and start-up of its new plant, and that the factors pressuring profit due to the relocation are easing. - FY2020-Q2MitigatedAnnual report
「In overseas markets, there were positive factors, including improved performance at Taisei Lamick Malaysia Sdn.Bhd., which began operating its new plant in the previous fiscal year. However, amid growing economic and trade uncertainty worldwide, sales declined slightly from the same quarter of the previous year, partly due to the yen's appreciation and other exchange-rate factors.」
The filing states that TLM’s performance improved after its new plant began operations, indicating progress in alleviating the factors that had pressured performance following the plant relocation. - FY2019WorsenedAnnual report
「In ASEAN, TLM was forced to relocate its plant because the site it owned was expropriated for an elevated railway project promoted by the Malaysian government. Although full-scale operations commenced during the current fiscal year, the slower-than-expected recovery in orders was also a factor behind the decline in profit.」
The filing states that the impact of TLM’s plant relocation persisted after full-scale operations began, and that the delay in the recovery of orders was a factor in the decline in profit. - FY2019-Q3WorsenedAnnual report
「Although full-scale operations began in the current period and there has been some delay against the plan, profitability and productivity are still being improved.」
The filing states that TLM’s new plant began full-scale operations, but experienced some delays against the plan, and that profitability and productivity are still improving. - FY2019-Q2RestatedAnnual report
「In Japan, sales of summer products and other items were strong due to the impact of record hot weather. Overseas, although the relocation of TLM's plant had a negative impact, customer growth in the Americas and strong sales of summer products in Korea resulted in sales of ¥12,591 million, up 4.2% year on year.」
Although negative factors associated with TLM’s plant relocation continue to be cited, sales in the packaging film segment increased due to customer expansion in the Americas and other factors. - FY2019-Q1RestatedAnnual report
「In Japan, sales of summer products and other items were strong. Overseas, customer numbers expanded in the Americas and summer products performed well in Korea, but sales were affected negatively by the relocation of TLM's plant, resulting in sales of ¥6,323 million, up 2.0% year on year.」
The filing states that negative factors associated with TLM’s plant relocation continued to affect first-quarter sales in the packaging film segment. - FY2018MaterialisedAnnual report
「Profit declined due to the impact of fixed costs incurred during the 3-month plant shutdown, as the change in TLM’s fiscal year-end resulted in 15 months being included in the consolidated period.」
The fixed costs associated with consolidating TLM for 15 months and its 3-month plant shutdown were actual factors behind the full-year decline in profit.