SUMIDA: Investor News

Revision of Consolidated Business Forecast for FY2008 and the 4th Quarter

February 19th 2009 Press Release

We, SUMIDA CORPORATION, hereby inform you of the revision of the consolidated business forecast for the fiscal year 2008 (January 1 to December 31, 2008) and 4th Quarter released on 28th October. The dividend forecast for the 4th Quarter remains unchanged and we plan to pay 10 yen per share while taking into account the current business forecast.

  1. Revision of the Consolidated Business Forecast for FY2008 and the 4th Quarter
    1. Consolidated Business Forecast for FY2008
      (Millions of yen)
        Net sales Operating
      income
      Ordinary
      income
      Net income EPS
      (Yen)
      Previous Forecast (A)
      (Released on Oct 28, ’08)
      58,000 3,430 2,450 1,130 58.81
      Revised Forecast (B)
      (Released on Feb 19, ’09)
       55,734 2,160  (140) (5,740) (298.76)
      Variance (B-A)  (2,266) (1,270) (2,590) (6,870) (357.57)
       % of Variance  (3.9%) (37.0%) - - -
      *EPS … earnings per share
    2. Revision of the Consolidated Business Forecast for the 4th Quarter
      (Millions of yen)
        Net sales Operating
      income
      Ordinary
      income
      Net income EPS
      (Yen)
      Previous Forecast (A)
      (Released on Oct 28, ’08)
      13,000 525 255 115 5.99
      Revised Forecast (B)
      (Released on Feb 19, ’09)
      10,719  (740) (2,340) (6,760) (351.85)
      Variance (B-A) (2,281) (1,265) (2,595) (6,875) (357.83)
       % of Variance (17.5%)
  2. Reasons for the Revision
    As the financial crisis which occurred in the U.S. has been going global, industry is also going into grave trouble world wide. The demand and production output in the world economy in the 4th Quarter (October 1 to December 31, 2008) have decreased sharply and the business environment of electronics and automotive industries deteriorated dramatically. Due to decreasing demand for electronic components and currency volatility (especially yen appreciation against Euro), the revenue of the Sumida Group has also dropped sharply in every business segment (Consumer Electronics, Automotive and Power Electronics Businesses) since the 4th Quarter.

    Regarding the result of consolidated business for FY2008, while net sales is slightly lower than the previous forecast, the operating income is substantially lower than the forecast. Nevertheless, the operating profit is still maintained as we kept achieving since we became the listed company in 1988.

    Meanwhile, 4,000 million yen of extraordinary losses are to be recorded due to incurring operating restructuring expenses to carry out bold operating restructurings in the Group as well as losses on revaluation of investments in securities. As a result, consolidated net loss is expected to be 5,740 million yen for FY2008. The consolidate business result for FY2008 and 4th Quarter is to be disclosed on February 24, 2009.
  3. Details of Extraordinary Losses
    The followings are the major items of 4,000 million yen of extraordinary losses for FY2008 (January 1 to December 31, 2008):
    1. Operation Restructuring Expenses
      1. Retrenchment (1,900 million yen)
        As we are taking measures to retrench due to a sharp decrease of demand, expenses for severance payment for employees are to be recorded. The cost reduction effect is expected to be 2,000 million yen for FY2009.
      2. Expenses regarding liquidation of subsidiaries (240 million yen)
        Expenses regarding the consolidation of our sales business in the North America (liquidation of subsidiaries) are to be made. The cost reduction effect is expected to be 200 million yen for FY2009.
      3. Cost for closing LCM Business (180 million yen)
        Expenses regarding the closing of LCM Business are to be recorded as we decided to focus management resources on other profitable businesses. The cost reduction effect is expected to be 180 million yen for FY2009.
    2. Losses from write-down of securities (400 million yen)
      As of the end of December 2008, we record the losses from write-down of securities the prices of which extremely dropped.

 

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