Published on March 20, 2009 by puramono
March 19, 2009, Yamaha announced a business restructuring by closing piano factory plant in UK and Taiwan. They have been produced large number of piano for the world. As an effect of global crisis, piano production in UK and Taiwan dropped significantly and they choose to close it’s plant in UK and Taiwan. They will focus it’s production based on it’s plant in Indonesia and China. They also announced withdrawal from unprofitable business, such as magnesium molding components for digital SLR camera.
In March 2009, Yamaha got a special loss of 23.6 billion yen from fixed asset impairment losses and restructuring costs. That’s made overall loss expected to be around 23 billion yen. Yearly dividend is expected to reduced by 7.5 yen to 42.5 yen. All executives will give back their compensation and managers will get a 5% salary reduction start from April 2009.
Manufacturing subsidiaries in Taiwan will stop production in July 2009 and plans to liquidate the company in March 2010. Declining demand in Taiwan made piano production is only 3600 piano a year, less than half of the peak in 1980s that forced them to end their role in Taiwan.
Published on March 10, 2009 by puramono
March 9, 2009, Tokyo Stock Exchange was still in strong uncertainty over the economy, Nikkei average closed at 7086.03 yen, 87.07 yen lower than last week’s closing point. This closing point was lower than post-bubble’s low at 7162.90 yen marked on October 27, 2008, and broke 26 years 5 months lowest point since October 1982.
It becomes clear that the deterioration of economic of the global economy and fall in US and Europe stock markets is expected to made further deterioration of Japanese companies performance. Also the political uncertainty made selling spread across the stock market started by financial stocks.
The TOPIX index of all Tokyo Stock Exchange shows the price of the stock part (TOPIX) also fell 10.86 points at 710.53, a new low record and broke about 25 years lowest point since December 1983. Financial institutions have faced the risk of impairment due to falling stock prices on fiscal year closing on March 2009.
Published on March 9, 2009 by puramono
March 9, 2009, Ministry of Finance announced that Japan had a 172.8 billion yen deficit on transactions of goods and services abroad on January 2009. The current deficit is the first time and biggest since 25.6 billion yen deficit occured on January 1996.
Large decline in exports in the rapidly deteriorating global economy, made trade balance deficit in last 3 months. Also, due to lower interest rates, the amount of interest income from foreign bonds is decreased as an effect of lower income surplus. The sharp decline in investment income made deficit even worst. However, January 1 is New Year’s holiday in Japan, there was a decline in exports every year, but trade balance in February 2009 could be improved.
