Sanix Announces 'Business Streamlining Plan' and Revision of Operational Results Forecast.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Aug 9, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - At the Board of Directors Meeting on August 9, 2006, SANIX Incorporated (Ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. : 4651, TSE/OSE/FSE, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. : Shin-ichi Munemasa) decided on the 'Business Streamlining Plan'. At the same time, in view of changes in recent operational results and the "Business Streamlining Plan", the forecasts for the first half-year and full-year operational results, announced on May 17, 2006 are modified as follows. 'Business Streamlining Plan' The Company has promoted streamlining of its operation for three years in order to overcome slumps in business results. Despite these efforts, recent misconduct MISCONDUCT. Unlawful behaviour by a person entrusted in any degree: with the administration of justice, by which the rights of the parties and the justice of the, case may have been affected. 2. in the industry and at SANIX, as well as other problems, have had negative effects, leading to shrinkage Shrinkage The amount by which inventory on hand is shorter than the amount of inventory recorded. Notes: The missing inventory could be due to theft, damage, or book keeping errors. of our sales revenues. Under these circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , it is likely that the profit for the current year may be far below that projected in the business plan. If we continue with the current business policy and operational organizations, it would be very difficult to record an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the current year. To overcome this situation and put our operations back on the track of growth as soon as practicable practicable adj. when something can be done or performed. , we will establish a 'Business Reform Committee' at SANIX. This Committee will fundamentally restructure business management organizations and drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. and proactively reform the cost structure, so as to improve and stabilize stabilize See peg. the profitability of SANIX businesses. I. Closing and Consolidation of Sales Offices All HS Division sales offices in the Kanto district will be closed. No sales office will operate in the Kanto district. Certain under-performing sales offices in other districts will also be closed and consolidated into other profitable sales offices. In addition, certain facilities of indirect departments will be reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. so as to save costs related to these facilities, and to improve the profitability of the operation. 1.) Offices to be closed/consolidated in the HS Division 27 offices will be closed. The total number of offices in the HS Division after consolidation will be 81. 2.) Offices to be closed/consolidated in the ES Division 12 offices will be closed Total number of offices in the ES Division after consolidation will be 23. 3.) Relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of regional headquarters to save rent (three regional headquarters and one training center). 4.) Closing of four employee dormitories. II. Labor Cost Reduction 1.) Wage reduction Wage reduction will be implemented in wages from August, for the following positions (followed by reduction rate):
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Officers: President: 50%, Managing directors: 30%,
Directors and Auditors: 25%
Employees: Department/Division Managers and Vice-chiefs: 20%,
Section Chiefs: 15%, Others: 10%
Applicable wages: Sum of basic wage, job adjustment allowance,
officer's allowance, qualification allowance,
skill allowance and local allowance
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2.) Personnel reduction Based on the closing and consolidation of sales offices, the number of workers at each office will be reduced to a level appropriate to its sales size.
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Job Type No. of Early Remarks
Retirees Invited
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Sales 115 employees Conduct sales activities with best
selected sales representatives to
improve sales productivity.
Engineers 260 employees Reduce to level appropriate to sales
size
Back office 285 employees Personnel mainly in indirect depart-
ments will be reduced to appropriate
level.
Total 660 employees No. of employees as of June 30, 2006:
2,803
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III. Other Cost Reduction Measures 1.) Reduction of policy costs (mainly advertising) 2.) Reduction of indirect department expenses (head office expenses and department expenses at headquarters) 3.) Cost reductions mainly in selling, general and administrative expenses IV. Impact of Business Streamlining Plan on Operational Results (decreases) --------------------------------------------------------------------- Reductions This term Next term --------------------------------------------------------------------- Drop in rent expenses after restructuring 30 350 Drop in personnel expenses 2,000 2,550 Other Cost Reduction 200 600 Total 2,230 3,500 --------------------------------------------------------------------- Details of the Revisions I. Revisions to First-half Results Forecast 1) Consolidated Results Forecast (April 1, 2006 to September September: see month. 30, 2006)
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(Millions of yen)
Net Sales Recurring Profit Net Income
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Previous Forecast 19,820 185 80
(as of May 17, 2006)
Revised Forecast 16,426 (472) (428)
Difference (3,394) (657) (508)
% Change (17.1) - -
Results from year before 20,548 (840) (1,292)
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2) Non-consolidated Results Forecast (April 1, 2006 to September 30, 2006)
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(Millions of yen)
Net Sales Recurring Profit Net Income
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Previous Forecast 18,900 110 50
(as of May 17, 2006)
Revised Forecast 15,550 (490) (430)
Difference (3,350) (600) (480)
% Change (17.7) - -
Results from year before 19,774 (908) (1,330)
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II. Revision to Full-year Results Forecast 1) Consolidated Results Forecast (April 1, 2006 to March 31, 2007)
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(Millions of yen)
Net Sales Recurring Profit Net Income
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Previous Forecast 39,000 900 700
(as of May 17, 2006)
Revised Forecast 39,921 1,899 1,863
Difference (6,079) 999 1,163
% Change (15.6) 111.0 166.1
Results from year before 36,509 (3,479) (4,252)
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2) Non-consolidated Results Forecast (April 1, 2006 to March 31, 2007)
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(Millions of yen)
Net Sales Recurring Profit Net Income
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Previous Forecast 36,930 750 630
(as of May 17, 2006)
Revised Forecast 30,960 1,800 1,800
Difference (5,970) 1,050 1,170
% Change (16.2) 140.0 185.7
Results from year before 35,031 (3,580) (4,354)
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III. Reasons for the Downward Revision On July 7, 2006, the Ministry of Economy, Trade and Industry The Ministry of Economy, Trade and Industry (経済産業省 issued to SANIX, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the provisions in Article 8, Paragraph 1 of Specific Commercial Transactions Law (hereinafter here·in·af·ter adv. In a following part of this document, statement, or book. hereinafter Adverb Formal or law from this point on in this document, matter, or case Adv. 1. the "Law"), an order to suspend six sales offices of the HS Division from conducting certain home-call sales activities as defined in Article 2, Paragraph 1 of the Law, from July 8, 2006 to October 7, 2006; and directions in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Article 7 of the Law. Under these circumstances, the HS Division established internal rules to restrict sales activities to senior citizens, conducted a compliance education meeting in each district, in which all employees of the HS Division participated, and implemented other measures to ensure strict compliance and prevention of recurrence recurrence /re·cur·rence/ (-ker´ens) the return of symptoms after a remission.recur´rent re·cur·rence n. 1. of similar misconduct. However, the impact of the administrative punishment that led to consumers' buying reluctance, the suspension of six sales offices' operations and the decrease in sales working days was so great that the sales revenues for July decreased from the same month last year. It is difficult to predict how much the weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. sales will
improve in August and later. Accordingly, the sales projection for the
second quarter was adjusted on the basis of sales figure recorded in
July. Accordingly, the consolidated sales revenue forecasts for the
first half-year and the full year announced last time have been
modified.
To improve recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. profit and net income, in accordance with the 'Business Streamlining Plan', sales office closures and consolidation, personnel reduction and radical cost reduction measures will be implemented to reduce fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). in the second half of the year. Because sales have decreased in the HS Division, which deals in products having a high profit margin, recurring profit and net income for the first half of the year are expected to be lower than originally forecast. However, measures implemented in accordance with the 'Business Streamlining Plan' will have a substantial and positive effect in the second half. It is expected that SGA SGA abbr. small for gestational age Small-for-gestational-age (SGA) A term used to describe newborns who are below the 10th percentile in height or weight for their estimated gestational age. expenses will be saved drastically as compared with the original forecast, resulting in great improvement to the profit structure. Accordingly, recurring income and net income for the full year are expected to exceed the original forecast. Based on these facts and assumptions, the consolidated recurring profit and net income forecasts for the first half-year and the full year announced last time have been modified. Semi-annual and annual forecasts of non-consolidated operating results have also been modified accordingly, for the same reasons. (Note) These forecasts are based on information available as of August 9, 2006. Actual results may be different from forecasts due to various unexpected factors in the future. About Sanix Incorporated Sanix (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4651) is Japan's leading provider of sanitation sanitation: see plumbing; sanitary science. and environmental services The various combinations of scientific, technical, and advisory activities (including modification processes, i.e., the influence of manmade and natural factors) required to acquire, produce, and supply information on the past, present, and future states of space, atmospheric, . The company's business is divided into three areas; Home Sanitation, and Establishment Sanitation, which provides pest control pest control n → control m de plagas pest control n → lutte f contre les nuisibles pest control pest n and sanitation maintenance and protection services for offices and public facilities. The Environmental Resources Development Division provides industrial waste management solutions and recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. services. This division positions Sanix as a leading provider of environmental services to society, which is becoming increasingly concerned about the health of the environment. Sanix's long experience in industrial waste management means the company is poised to take the lead in this new field. Source: Sanix Incorporated Contact: Kozo Inoue Managing Director Administration Department Management and Planning Division TEL: 81-92-436-8870 FAX: 81-92-436-8871 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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