News Release
April 9, 2009
Notice of Withdrawal from a Portion of a Subsidiary's Business
At our company's board of directors meeting held April 9, 2009, it was decided the company's consolidated subsidiary SURUGA SEIKI CO., LTD., will withdraw from a portion of its business.
Outline of the Business of Withdrawal
Iwaki Fine Technology Division, SURUGA SEIKI CO., LTD.,
Business: Manufacture and sale of powder metallurgy parts, hard metal parts, and fine pressing parts
Reason for Withdrawal from the Business
Since its inception as Fujitsu Sinter Ltd. in 1980, the business has leveraged its ultra-precision die & mold technology in the development and mass production of products including components for precision machinery, industrial machinery and auto parts.
Over the 23 years from inception until being absorbed by SURUGA SEIKI CO., LTD. in October 2003, the business had struggled, posting losses almost every year. Since this merger, SURUGA SEIKI had tried to improve the business. Its earnings improved temporarily as a result of accelerated implementation upon Suruga Seiki’s entrance into the MISUMI Group in April 2005.
Effects of the global recession, however, caused a substantial decline in orders since November 2008, and earnings once again deteriorated rapidly. Moreover, the MISUMI Group judged it difficult to wring further improvements from its earnings structure and to establish profitability. Thus, the decision was made to withdraw from the business.
Schedule
Operations to be discontinued effective September 30, 2009
Outlook
Impact of the above on consolidated earnings: The MISUMI Group expects to book an extraordinary loss of approximately ¥800 million in the fiscal year ending March 2009.
Please also refer to our Notice Concerning Revisions to Earnings Estimates.
