Press Releases 2006 (The former Furukawa-Sky)

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Notice Regarding Revisions to Performance Outlook and Year-end Dividends for the Fiscal Year Ending March 2006

February 8, 2006

Based on recent performance trends, Furukawa-Sky has made the following revisions to its performance outlook for the fiscal year ending March 2006 (April 1, 2005 to March 31, 2006), originally announced December 2, 2005.

We have also revised the outlook for year-end, per-share dividends as detailed below.

1. Revisions to performance outlook

(1)Revision to the full-term performance outlook (consolidated) for the fiscal year ending March 31, 2006 (April 1, 2005 to March 31, 2006)

Unit: million yen

  Net Sales Ordinary Income Net Income
Previous outlook (A)
(Announced December 2, 2005)
212,362 16,463 8,720
Revised outlook (B) 209,771 12,080 5,580
Increase/(Decrease) (B-A) (2,591) (4,383) (3,140)
Change (%) -1.2 -26.6 -36.0
(Reference)
Fiscal 2005 actual results
213,300 15,984 8,350

(2)Revision to the full-term performance outlook (non-consolidated) for the fiscal year ending March 31, 2006 (April 1, 2005 to March 31, 2006)

Unit: million yen

  Net Sales Ordinary Income Net Income
Previous outlook (A)
(Announced December 2, 2005)
181,923 14,712 8,112
Revised outlook (B) 179,964 11,176 5,577
Increase/(Decrease) (B-A) (1,959) (3,536) (2,535)
Change (%) -1.1 -24.0 -31.3
(Reference)
Fiscal 2005 actual results
183,420 13,830 7,485

(3)Reasons for the revised performance outlook

i.Reasons for the revision to non-consolidated performance outlook

Regarding the earnings outlook, the sales volume of material for cans and thick steel plates for liquid crystal and semiconductor-related products is expected to fall below the initial projection. This drop is mainly caused by the delayed recovery in demand for thick steel plates, in particular, that was expected to rise after the completed inventory adjustment in the latter half of the fiscal year.

Regarding the profit-and-loss outlook, an unexpected price increase in fuel due to soaring crude oil prices and the jump in current aluminum metal market prices in addition to the decrease in unit sales have put pressure on our profits. In addition, unusually unfavorable weather conditions in the coastal areas along the Japan Sea have been hindering operations at the Fukui Plant. For these reasons, Furukawa-Sky's performance is now expected to fall below the figures of the initial outlook.

ii. Reasons for the revision to consolidated performance outlook

Consolidated net sales is expected to fall below our initial outlook mainly due to the influence of revision in Furukawa-Sky's performance outlook.

Consolidated profit and loss is also expected to fall below our initial outlook due to the effects on our affiliates of the rise in aluminum metal and crude oil prices, in addition to the revision in Furukawa-Sky's performance outlook.

2. On the revised year-end dividend outlook

(1)Revision of the outlook for year-end dividend for the year ending March 2006


Interim (Actual) Year-end (Outlook) Full-term (Outlook)
Initial Outlook
(Announced December 2, 2005)
7.41 yen 4.09 yen 11.50 yen
Revised Outlook 7.41 yen 2.30 yen 9.71 yen

(2)Reasons for the revision

It is our policy to pay out dividends according to performance, and due to the recent downward revision of the performance outlook for the entire year ending March 2006, we regretfully revise the projected year-end dividend as summarized above.

Note:
The above outlook is based on all information available as of the day of this announcement as well as on hypotheses about factors which may affect future performance available as of the day of this announcement. Actual performance may differ materially from this outlook, based on various factors that may arise in the unforeseeable future.