Forecast results for the semiannual period
ending September 30, 2002 and for the fiscal year ending
March 31, 2003 announced on May 14, 2002 have been revised
as follows:
1. For the semiannual period ending September
30, 2002
| Consolidated |
(millions
of yen) |
| |
Net
sales |
Operating
profit |
Ordinary
profit |
Net
income (loss) |
| Original
forecast |
585,000 |
22,000 |
16,000 |
4,000 |
| Revised
forecast |
580,000 |
24,000 |
18,000 |
(43,000) |
| Increase
(decrease) |
(5,000) |
2,000 |
2,000 |
(47,000) |
| Percent
change |
-0.9% |
+9.1% |
+12.5% |
– |
cf.
Semiannual period
ended September 30, 2001 |
600,057 |
23,715 |
20,655 |
3,062 |
|
| |
| Non-consolidated |
(millions
of yen) |
| |
Net
sales |
Operating
profit |
Ordinary
profit |
Net
income (loss) |
| Original
forecast |
440,000 |
11,000 |
8,000 |
1,000 |
| Revised
forecast |
435,000 |
12,000 |
10,000 |
(41,000) |
| Increase
(decrease) |
(5,000) |
1,000 |
2,000 |
(42,000) |
| Percent
change |
-1.1% |
+9.1% |
+25.0% |
– |
cf.
Semiannual period
ended September 30, 2001 |
461,253 |
12,577 |
14,386 |
2,513 |
|
2. For the fiscal year ending March 31,
2003
| Consolidated |
(millions
of yen) |
| |
Net
sales |
Operating
profit |
Ordinary
profit |
Net
income (loss) |
| Original
forecast |
1,195,000 |
48,000 |
36,000 |
9,000 |
| Revised
forecast |
1,200,000 |
54,000 |
43,000 |
(46,000) |
| Increase
(decrease) |
5,000 |
6,000 |
7,000 |
(55,000) |
| Percent
change |
+0.4% |
+12.5% |
+19.4% |
– |
cf.
Fiscal year ended
March 31, 2002 |
1,195,393 |
45,664 |
39,849 |
5,180 |
|
| |
| Non-consolidated |
(millions
of yen) |
| |
Net
sales |
Operating
profit |
Ordinary
profit |
Net
income (loss) |
| Original
forecast |
900,000 |
25,000 |
18,000 |
2,000 |
| Revised
forecast |
910,000 |
30,000 |
25,000 |
(48,000) |
| Increase
(decrease) |
10,000 |
5,000 |
7,000 |
(50,000) |
| Percent
change |
+1.1% |
+20.0% |
+38.9% |
– |
cf.
Fiscal year ended
March 31, 2002 |
922,086 |
25,159 |
27,965 |
1,028 |
|
3. Reasons for revision
For the fiscal half year
Results are expected to exceed our original forecast
in electronics operations, with strong markets for electronics
parts, and in health care operations, with strong growth
for new pharmaceuticals and for artificial kidneys.
However, results in other operations are now expected
to fall short of our original forecast. Sales price
increases in chemical and chemical-related operations,
particularly for commodity resins, could not be implemented
rapidly enough to absorb the increased costs resulting
from persistently high naphtha prices. Results in housing
and construction materials operations reflected the
severe operating climate, with a decrease in the number
of housing units sold and continuing low market prices
for construction materials.
In addition, a change in our accounting
treatment of actuarial differences arising in relation
to retirement allowances will result in reduced operating
expenses, and overall consolidated operating profit
is expected to remain roughly on par with our original
forecast.
Retirement benefits
Asahi Kasei has begun implementing revisions to rationalize
its system of retirement benefits, and proxy execution
of a portion of pension benefit plans pursuant to the
Japanese Welfare Pension Insurance Law is being relinquished
for reversion to national government execution. To expedite
reflection on the financial statements of the large
amount of unrecognized obligations which had accumulated
by the end of the previous fiscal year, our accounting
policy for amortization of actuarial differences is
being revised. Beginning with the present fiscal period,
unrecognized actuarial differences will be amortized
in the fiscal year following their occurrence. Previously,
unrecognized actuarial differences were amortized on
a straight-line basis beginning in the fiscal year following
their occurrence over a given term (mainly ten years)
within the average number of years of employee service
remaining before retirement at the time of occurrence.
To facilitate the transition to one-year
amortization of unrecognized actuarial differences,
the ¥126.0 billion (¥120.2 billion non-consolidated)
amount accumulated at the beginning of the present fiscal
period will be charged as a one-time special loss. At
the same time, a one-time special gain of ¥56.1
billion (same amount non-consolidated) will be recorded
due to the reversion of proxy execution of a portion
of the national pension. Largely as a result of these
extraordinary items, a net loss of ¥43.0 billion
is now forecast for the fiscal half.
For the fiscal year
The outlook for the operating environment
remains obscure, with the US economy tending toward
slower growth and the Japanese economy facing intensifying
deflationary pressure. Results in chemical and chemical-related
operations are expected to benefit from sales price
increases and operating cost reductions. The operating
environment for housing and construction materials and
for liquors, where a transfer of part of the business
has resulted in a smaller-scale operating base, is expected
to remain extremely challenging. Results in fibers and
textiles operations will be impaired by the effects
of the Leona Plant fire. Results on par with our original
forecast are expected in electronics operations, which,
despite uncertainty about whether strong demand will
be sustained, will be supported by the strong first
fiscal half, and in health care operations, where sound
performance is expected to continue.
The portion of operating expenses from
amortization of actuarial differences arising in relation
to retirement benefits will be reduced, and overall
net sales and operating profit are expected to remain
roughly on par with our original forecast.
Dividends
Despite the severe forecast for net
results, we believe the maintenance of long-term stability
of dividends is of vital importance, and plan to implement
dividends of ¥3 per share for both the first half
and second half of the fiscal year.
Note: Performance forecasts are based
on the best information available at this time, but
actual results may diverge from these forecasts due
to a variety of factors which cannot be foreseen. |
