Eliminating Unprofitable Divisions and Reducing Costs

「In the logistics business, revenue increased to ¥1,695 million, up 13.7% year on year, mainly due to contributions from the import and export of large-scale equipment and the commercial warehouse business. Segment profit increased to ¥227 million, compared with ¥209 million in the same period of the previous year, as a result of efforts to reduce costs, including more efficient vehicle dispatching.」

「In the externally sold profiles business, revenue increased to ¥23,254 million, up 9.0% year on year, due mainly to expanded sales of high-margin fabricated products. In addition to higher fabricated-product sales, lower subcontracting costs through in-house production and improved productivity from capital investment increased segment profit to ¥366 million, compared with ¥313 million in the same period of the previous year.」

「Segment profit increased to ¥70 million, compared with ¥23 million in the same period of the previous year, mainly because the company advanced rationalization measures, including lower subcontracting costs through in-house production.」

「By improving unprofitable transactions and transport rates and increasing margins through lower subcontracting costs from in-house production of aluminum fabricated products, the company returned the externally sold profiles business to profitability, reporting segment profit of ¥313 million compared with a segment loss of ¥566 million in the same period of the previous year.」

「In the extruded products sales business, revenue declined 3.8% year on year to ¥10.308 billion due to the impact of aluminum ingot market prices and lower volumes, among other factors. However, segment profit increased to ¥23 million, compared with a segment loss of ¥170 million in the previous corresponding quarter, due to improvements in unprofitable transactions, among other factors.」

「In the externally sold profiles business, revenue increased to ¥10,711 million, up 18.1% year on year, due mainly to higher selling prices linked to aluminum ingot market conditions. Despite the impact of surging prices for various materials, segment loss narrowed to ¥170 million, compared with a segment loss of ¥296 million in the same quarter of the previous year, as the company pursued fundamental reforms, including a review of its production structure.」

「In the environmental business, sales were ¥2,004 million, compared with ¥2,085 million in the same quarter of the previous year, while segment profit was ¥184 million, compared with ¥90 million, due in part to stronger sales capabilities in the plant division and cost reductions in chemical sales.」

「In the environmental business, although the impact of lower chemical sales during the COVID-19 pandemic continued, stronger sales capabilities in the plant division and cost reductions lifted sales to ¥1,350 million, compared with ¥1,280 million in the same quarter of the previous year, and segment profit to ¥146 million, compared with ¥9 million.」

「Against this backdrop, in response to concerns about deterioration in market conditions due to the spread of the novel coronavirus, the company launched an “Emergency Response Project” and will advance its business plan for the current fiscal year by implementing various measures, including expense reductions and business reform.」

「In the externally sold profiles business, revenue declined to ¥5,295 million, down 2.7% year on year, due mainly to lower volumes. However, by focusing on cost reductions and other measures, segment loss narrowed to ¥76 million, compared with a segment loss of ¥130 million in the same quarter of the previous year.」

「In the extruded profile sales business, net sales declined 5.5% year on year to ¥20,313 million due to overseas business downsizing, aluminum ingot market conditions and foreign exchange movements. However, segment profit was ¥382 million, compared with a segment loss of ¥398 million in the same period of the previous year, reflecting efforts to expand domestic volumes and reduce costs, resulting in a return to profitability.」

「In the extruded profile sales business, net sales declined 4.8% year on year to ¥15,194 million due to overseas business downsizing, aluminum ingot market conditions and foreign exchange movements. However, segment profit was ¥525 million, compared with a segment loss of ¥295 million in the same quarter of the previous year, reflecting efforts to increase domestic volumes and reduce costs, resulting in a return to profitability.」

「The company returned to profitability, reporting segment profit of ¥283 million compared with a segment loss of ¥223 million in the same quarter of the previous year, mainly by focusing on increased domestic volumes and cost reductions.」

「Segment profit was ¥169 million, compared with a segment loss of ¥115 million in the same quarter of the previous year, mainly because the company focused on eliminating unprofitable operations and reducing costs.」