TOSTEM to Expand Offshore Sales by 11.5% in F2008

TOSTEM Corporation plans to increase the offshore sales by 11.5% to 5.8 billion yen for the year ending March 2009 from previous year. The firm tries to increase the sales in Thailand. With the higher sales, the firm targets 10.9 billion yen of net profit for the year, which is 3.3 times of the profit in the year ending March 2008. The firm increases the offshore production to 31% of the total production by expanding the housing aluminium sash making Thai plant for 3.1 billion yen. The firm tries to improve the global cost competitiveness by expanding offshore production and shutting domestic plant in Ibaraki. The firm posted lower sales and profit for the year ending March 2008 from previous year due to very slow building market. The firm expects the profitability improves with better housing market and 1.5 billion yen cost cutting. The firm targets 20.2 billion yen of operating profit, 20.4 billion yen of recurring profit with 529.1 billion yen of sales for the year ending March 2009, which represents 77.4% and 80.7% higher profit for operating and recurring and 2.8% higher sales from previous year. The parent company of JS Group Corporation plans 34.5 billion yen of capital expenditure for the year ending March 2009, which is 2.5% lower than previous year. The firm expands the offshore production of TOSTEM and launches new products for better profitability.