Sankyo-Tateyama Targets 100 Billion Yen More Sales in 2020

Sankyo-Tateyama Holdings announced on Tuesday the firm targets 360 billion yen of sales for the year ending May 2020 under the new plan compared with 260.9 billion yen in the year ended May 2011. The firm expands the business by improving renovation and non-construction materials business and expanding offshore business. The firm targets 6% of operating profit rate on sales and more than 10% of offshore sales in the year ending May 2020 compared with 3% and less than 1% respectively in the year ended May 2011.

The firm fails to clear the targets of 264 billion yen of sales and 6.2 billion yen of recurring profit for the year ending May 2012 under the current mid-term plan through the year when the firm expects 260 billion yen of sales and 4 billion yen of recurring profit. The firm expects higher oil and aluminium ingot price reduce the profit along with higher yen rate and the major earthquake effect.

The firm tries to shift from core business of construction materials to renovation business, non-construction materials business and offshore business under the new plan. The firm also reshuffles the operations.

The firm tries to increase the renovation business weight in construction materials business from 21% in the year ended May 2011 to 40% in the year ending May 2020. The firm expands the alloy and extraction process business as a part of effort to expand non-construction materials business. The firm expands Asian production and sales while the firm improves domestic cost competitiveness.