Dissolution of Gates Korea and Consolidation of Production at Chinese Manufacturing Sites
First written in FY2021-Q1. 1 of 3 entries say "Advanced", first in FY2021-Q2. Latest entry: FY2021-Q3.
The whole theme swung hardest in 2017: 2 of 9 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2021-Q3RestatedAnnual report
「Ordinary profit decreased by ¥1,475 million year on year, or 25.3%, to ¥4,364 million, due to weaker demand from the automotive industry and a decrease in equity in earnings of affiliates associated with the dissolution of Gates Korea Co., Ltd., an equity-method affiliate.」
The decrease in equity in earnings of affiliates associated with the dissolution of Gates Korea continued to be reflected in results as a factor behind the decrease in ordinary profit for the nine months ended the third quarter. No new results showing improvement from consolidation at Chinese manufacturing sites were presented. - FY2021-Q2AdvancedAnnual report
「Ordinary profit decreased by ¥2,054 million year on year, or 50.1%, to ¥2,043 million, due to weaker demand from the automotive industry and a decrease in equity in earnings of affiliates associated with the dissolution of Gates Korea Co., Ltd., an equity-method affiliate.」
The decrease in equity in earnings of affiliates associated with the dissolution of Gates Korea was reflected in results for the second quarter. This filing does not present new results showing profit improvement from production consolidation at Chinese manufacturing sites. - FY2021-Q1First statedAnnual report
「Gates Korea Co., Ltd., an equity-method affiliate of the company, resolved at its extraordinary general meeting of shareholders held on 26 June 2020 to dissolve. The reason for the dissolution is to consolidate the production of timing belts and other products at Chinese manufacturing sites under Gates Nitta Belt Company LLC, an equity-method affiliate of the company in which the company holds a 49.0% interest, thereby strengthening competitiveness. The timing of liquidation has not yet been determined. Due to temporary costs associated with the dissolution and liquidation, including impairment losses on fixed assets and employee dismissal costs, equity in earnings of affiliates is expected to decrease by approximately ¥1,600 million from the second quarter of the consolidated fiscal year onward. In contrast, consolidation of production at Gates Nitta Belt Company LLC is expected to increase equity in earnings of affiliates by approximately ¥500 million annually from the following consolidated fiscal year onward.」
The company resolved to dissolve Gates Korea and described for the first time its plan to consolidate production of timing belts and other products at Chinese manufacturing sites under Gates Nitta Belt Company LLC to strengthen competitiveness. It explained that equity in earnings of affiliates is expected to decrease temporarily by approximately ¥1,600 million from the second quarter onward, then increase by approximately ¥500 million annually from the following consolidated fiscal year onward. The timing of liquidation has not been determined.