Nearly two months after the company reported a year-over-year revenue decrease amid the COVID pandemic, Nippon Sheet Glass Co. (NSG Group) has announced the results of its cost-savings measures including its “Voluntary Retirement Program in Japan” and the sale of certain non-current assets. According to the company, these cost-saving actions will help NSG return to its pre-pandemic financial levels.
According to the company, the voluntary retirement program resulted in 131 applicants volunteering to retire early. With some exceptions, the program allowed for employees aged 40 or older to apply between January 18 and February 12, with the planned retirement date of March 31.
Additionally, NSG announced the sale of certain non-current assets in Japan. The company sold the land of the Sagamihara plant in Kanagawa Prefecture, Japan, on March 30. The building was used as offices and a manufacturing plant, according to a news release. The company also sold land belonging to its research center in Hyogo Prefecture, Japan, on March 30.
NSG did not disclose the sale price or the name of the Japanese buyers, citing confidentiality, but noted that there was “no relationship requiring disclosure between NSG and the buyer, including capital, personal or business relationship,” according to the release.
According to the company, NSG expects to recognize a gain of about $64.6 million,* “after deducting the assumed incidental expenses associated with the land’s book value and the sale, as well as the amount equivalent to the selling cost for the right-of-use assets calculated from cumulative lease payments, respectively from the sale price. The gain on disposal of non-current assets will be recorded as an exceptional gain in the consolidated results for the fourth quarter of FY2021.”
*The financial information was converted from Japanese Yen to U.S. dollars on April 9, 2021.