Discontinuation of Hokkai Seikan's Steel Beverage Can Business
First written in FY2023-Q2. 2 of 5 entries say "Cited as achieved", first in FY2024-Q2. Latest entry: FY2024-Q3.
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- FY2024-Q3Cited as achievedAnnual report
「Against this backdrop, the Group’s results for the cumulative third quarter of the current consolidated fiscal year were as follows. Due to the discontinuation of the beverage can business at its principal subsidiary, Hokkai Seikan Co., Ltd., and other factors, net sales declined to ¥69,277 million (down 1.9% year on year). However, owing to a lower depreciation expense burden and other factors, operating profit rose to ¥4,860 million (compared with operating profit of ¥309 million in the same period of the previous year), ordinary profit to ¥5,422 million (up 514.7%), and net income attributable to owners of the parent to ¥3,699 million (compared with net income attributable to owners of the parent of ¥17 million in the same period of the previous year).」
The completed discontinuation of the beverage can business was cited in the third-quarter cumulative results as a factor behind the decline in revenue, while also contributing to improved operating income through a reduced depreciation burden. - FY2024-Q2Cited as achievedAnnual report
「Under these circumstances, during the cumulative second quarter period, the Group's operating performance was affected by the discontinuation of the beverage can business at its major subsidiary, 北海製罐株式会社. Although revenue declined to ¥46,265 million, down 3.8% year on year, operating income rose 98.4% to ¥4,175 million, owing mainly to a reduced depreciation burden.」
The completed discontinuation of the beverage can business was cited in the results as a factor behind the decline in revenue for the quarter and the improvement in operating income due to the reduced depreciation burden. - FY2023AchievedAnnual report
「The company determined that it would become difficult to secure profitability in the empty steel beverage can business due to changes in the market environment and other factors, and that improving profitability would remain difficult over the medium term. The business was therefore discontinued at the end of March this year.」
北海製罐's empty steel beverage can business was discontinued at the end of March 2023, and gains on the sale of fixed assets of ¥8,288 million, business restructuring costs of ¥2,800 million and impairment losses of ¥5,199 million, among other items, were recorded in connection with the discontinuation. - FY2023-Q3AdvancedAnnual report
「In connection with the discontinuation of its beverage steel can business, 北海製罐株式会社 decided to close the Iwatsuki Plant, which manufactures beverage steel cans, and the Central Research Institute located at the plant, with the aim of improving asset efficiency, and to transfer the related fixed assets.」
The decision to discontinue the empty steel beverage can business progressed to resolutions to close the Iwatsuki Plant and Central Research Institute and transfer fixed assets. The implementation details and figures became more specific, including a planned handover on 15 March 2023, approximately ¥8.2 billion in gains on the sale of fixed assets, approximately ¥3.0 billion in business restructuring costs and 89 employees using the early retirement programme. - FY2023-Q2First statedAnnual report
「We had continued the beverage steel can manufacturing business for nearly 50 years since 1973. However, in light of changes in the market environment surrounding the business in recent years, soaring raw material prices and energy costs, and the rapid depreciation of the yen, we determined that it would be difficult to secure profits and that improving profitability would also be difficult over the medium term. We therefore decided to discontinue the business.」
At a meeting of the Board of Directors held on 3 October 2022, the company decided to discontinue 北海製罐's manufacturing and sales business for empty steel beverage cans. Fiscal 2022 results were net sales of ¥6,093 million and an operating loss of ¥979 million. The timing of the discontinuation was under discussion with customers, and the impact on consolidated results was still being examined.