Cost Reduction and Cost Cutting

「To maintain and expand the production capacity of the pile plants, reduce costs, and ensure safety, the company modified product manufacturing equipment and produced molds.」

「価格戦略の強化とコスト管理の高度化」

「Against this backdrop, because the group recorded a net loss for the previous fiscal year and paid no dividend, it formulated a business improvement plan, announced on 19 May 2023, to achieve an early recovery in performance and resume dividend payments, and steadily implemented measures including cost reductions, improved construction profitability, and the establishment of appropriate prices. As a result, sales and profit increased from the previous fiscal year, enabling the company to pay a dividend of ¥13.」

「Against this backdrop, because the group recorded a net loss for the previous fiscal year and paid no dividend, it formulated a business improvement plan, announced on 19 May 2023, to achieve an early recovery in performance and resume dividend payments, and steadily implemented measures including cost reductions, improved construction profitability, and the establishment of appropriate prices. As a result, for the cumulative third quarter of the consolidated fiscal year, sales were ¥40.306 billion, up 5.8% year on year, operating profit was ¥1.844 billion, up 700.9%, and ordinary profit was ¥2.142 billion, up 309.7%, while profit attributable to owners of the parent was ¥938 million, compared with a quarterly net loss of ¥71 million in the same period of the previous year.」

「The company is steadily implementing measures under the plan, including establishing appropriate prices, expanding sales, and reducing costs, and has achieved a certain level of results.」

「Against this backdrop, because the group recorded a loss and paid no dividend in the previous fiscal year, it formulated a business improvement plan, announced on 19 May 2023, to achieve an early recovery in performance and resume dividend payments, and is working to establish appropriate prices reflecting increases in raw material prices, expand sales, reduce costs, and implement other measures.」

「• Cost reductions without exempting any area (review of operations and organizations) • Manufacturing cost reductions (review of plant production systems and manufacturing costs, and improved production efficiency) • Reductions in costs related to handling problems (strengthening quality control in manufacturing and construction) • Expansion of sales of poles and PC wall panels • Establishment of appropriate selling prices reflecting increases in raw material prices • Building a highly profitable group-wide structure by strengthening coordination between manufacturing and sales」

「As measures to improve current performance, we are working to secure profit by further passing increases in raw material and other prices through to selling prices and by reducing expenses.」

「However, although the Foundations business is showing signs of recovery following orders for civil engineering projects in the second half, plant utilization declined over the full fiscal year because large-scale projects were lost amid intensifying competition. In addition, the impact of soaring raw material and energy costs across the businesses caused the company to fall short of its initial earnings plan for the fiscal year.」

「In terms of earnings, the company has begun responding to rising raw material prices and working to secure profit.」

「Although sales declined in the Foundations business, a substantial increase in sales in the Concrete Secondary Products business brought total sales to ¥48.877 billion, up 6.7% year on year. In terms of earnings, increased production and shipments of concrete secondary products, expansion of various civil engineering projects and improved profit margins, a focus on construction management in the Foundations business, and thorough company-wide cost reductions resulted in operating profit of ¥2.746 billion, compared with an operating loss of ¥86 million in the same period of the previous year.」

「In the same period of the previous year, loss-making construction projects and modifications at the main plant resulted in a loss. During the cumulative period under review, however, we worked to secure construction profit through improved plant earnings following rigorous cost reductions and more thorough management of construction progress. As a result, segment profit was ¥825 million, compared with a segment loss of ¥38 million in the same quarter of the previous year.」

「As a result of improving the earnings of manufacturing group companies through thorough cost reductions at the plants and securing construction profit through rigorous management of construction progress, segment profit was ¥522 million, compared with a segment loss of ¥83 million in the same period of the previous year.」

「The company has continued company-wide cost reductions without exempting any area since the previous fiscal year, and the gross profit margin has improved significantly.」

「First, we will pursue cost reductions across the company without exempting any area.」

「As a group, we will modify our facilities and production lines to respond to changing demand for our core product, concrete poles, while implementing further cost reductions in response to the increasingly challenging business environment.」

「The entire group continues to work on reducing production costs, cutting costs, and implementing related measures, and operating profit was ¥2.137 billion, up 5.2% year on year.」

「The entire group continues to work on reducing production costs, cutting costs, and implementing related measures, and operating profit was ¥2.031 billion, up 37.2% year on year, alongside higher sales.」

「The entire group continues to work on reducing production costs, cutting costs, and implementing related measures,」

「The entire group continues to work on reducing production costs, cutting costs, and implementing related measures.」