Hoya - Cost Savings From Restructuring

Precision equipment maker Hoya Corp of Janan said it expects fixed-cost savings from streamlining & other measures to lift profit by JPY 10-13BN in year ending March 2010. In the 2009, the company moved its production of digital cameras to the Philippines & elsewhere, also leaving the crystal glass business, reducing employees by 144. This reduction is expected to help save JPY 7-10BN in personnel costs this fiscal year. Hoya also wrote down JPY 30.5BN yen of the (approx) JPY 45BN in goodwill on its 2007 acquisition of Pentax Corp. at the end of fiscal 2008, which will lower Hoya's goodwill amortization burden by about JPY 3BN annually beginning 2009.