JS Group Targets 8% Profit Rate in F2015

JS Group announced on Monday the firm targets 8% of operating profit on 3 trillion yen of consolidated sales in fiscal 2015 ending March 2016 under the new 5-year plan. The firm focuses the domestic activity on growing areas including housing renovation and environmental and energy related business while the firm tries to follow growing offshore demand by developing low cost and competitive products. The firm reduces the domestic assets by 30% in 3 years to secure investment fund for the growth strategy.

The firm expects domestic housing market shifts from new house to renovation. The firm supplies the renovation materials from the deposits network while the firm seeks opportunity of M&A and alliance with real estate developers. The firm tries to accelerate solar power business while the firm expands the environmental friendly products including double window, heat insulated net curtains and water saving toilet.

The firm expands offshore operation with aggressive investment. The firm secures around 1,000 of researchers to develop new products for emerging countries. The firm expands the activity through alliance with Haier of China. The firm tries to secure certain share in each emerging market of processed construction materials.

The firm tries to improve the domestic profitability by around 110 billion yen by fiscal 2013. The firm reduces the cost by 40 billion yen in integration of the sales bases, by 30 billion yen in integration of the production bases and 40 billion yen by purchase and administration activity. The firm targets 10% of operating profit on the sales of existing domestic operations in fiscal 2013. Based on the better cash position, the firm invests around 60 billion yen for the growth strategy.