DAISHINKU CORP. Notice Regarding the Recording of Extraordinary Loss, Revision of Projected
Financial Results and Payment of Dividend from Retained Earnings
Tokyo, April 24, 2015 - DAISHINKU CORP (the "Company") announced to record an extraordinary loss, as described below. Based on the above result and actual performance, the Company revised forecast of consolidated financial results for the fiscal year ended March 31, 2015 that was previously announced on November 13, 2014. Also, the Company resolved not to pay dividends, previously not yet determined, from retained earnings regarding March 31, 2015 at the Extraordinary Board of Directors' meeting held on April 24, 2015.
1. Recording of Extraordinary Loss
The Company's severe result has been continuing from the influence of fall in unit sales price, decline in sales of optical device and rising personnel costs in overseas production plants. Under such circumstances, the Company has been promoting the cost reduction measures to improve yield rate and productivity and so on. Moreover, the Company will take radical restructuring improvement in order to strengthen cost competitiveness and achieve high profitability. As a result of the above, the Company is expected to record the extraordinary loss including the restructuring costs of 3,892 million yen and the loss on retirement of fixed assets of 515 million yen in consolidated financial results for the fiscal year ended March 31, 2015.
The Company is expected to record the extraordinary loss including loss on valuation of stocks of subsidiaries and affiliates of 4,576 million yen in non-consolidated financial results for the fiscal year ended March 31, 2015. However, there is no impact on the consolidated results because of a consolidated elimination.
(Reference) Management objectives after fiscal year ending March 31, 2016
The Company will make profits and achieve the resumption of dividend under radical restructuring improvement.
(Units: Millions of Yen)
Fiscal Year Ending March 31, 2016 | Fiscal Year Ending March 31, 2017 | Fiscal Year Ending March 31, 2018 | |
Consolidated Net Sales | 33,000 | 34,500 | 37,000 |
Consolidated Operating Income | 450 | 1,000 | 2,000 |
2. Revised Consolidated Forecast for the Fiscal Year Ended March 31, 2015 (April 1, 2014 to March 31, 2015)
(Units: Millions of Yen)
Net Sales | Operating Income | Recurring Income | Net Income | Net Income per share | |
Original Forecast (A) | 32,000 | (1,000) | (600) | (1,100) | (26.55) |
Revised Forecast (B) | 31,000 | (2,300) | (1,200) | (6,350) | (155.52) |
Difference (B-A) | (1,000) | (1,300) | (600) | (5,250) | - |
% Change | (3.1) | - | - | - | - |
(Reference) Fiscal Year Ended March 31, 2014 | 33,788 | 785 | 1,318 | 810 | 19.55 |
Reasons for Revision
Regarding Net Sales, it fell below the original forecast because sales of products for smart phones marketed in China has grown sluggishly, though the exchange rate remained weaker yen compared to the previous assumption (109 yen per US dollar). Besides, operating, recurring, net income are expected to fall below the previous forecast due to a decline in sales, recording the loss valuation of inventories of 566 million yen to the sales cost, recording the restructuring costs of
3,892 million yen to the extraordinary loss and recording the income taxes-deferred of 110 million yen under reversal of the provision for the deferred tax assets. Therefore, the Company revised the forecast of consolidated financial results for the fiscal year ended March 31, 2015 as shown above.
(Notes)
The forecasts are based on assumptions of the future economic environment using the data available at the time of disclosure. Actual earnings may differ from the forecasts, due to a range of factors.
3. Details of Dividends
Dividend Declared of the Fiscal Year Ended March 31, 2015 | Original Forecast (Announced on November 13, 2014) | Result of the Fiscal Year Ended March 31, 2014 | |
Record Date | March 31, 2015 | Same as on the left | March 31, 2014 |
Dividend per Share | JPY 0 | － | JPY 5 |
Total Dividends Paid | － | － | 207 millions of yen |
Effective Date | － | － | June 30, 2014 |
Dividend Resource | － | － | Retained Earnings |
Reason
The Company's basic profit sharing policy focuses on maintaining a continuous and stable payout of dividends. Taking its financial results and business environments into account, the Company regrettably decided not to pay dividends declared of the fiscal year ended March 31, 2015 that was undecided when it announced the forecast on November 13, 2014.
(Reference) Breakdown of Annual Dividends
Dividend per Share | |||
Record Date | End of Second Quarter | Year-End | Annual |
Original Forecast (Announced on November 13, 2014) | － | － | |
Fiscal Year Ended March 31, 2015 | JPY 2 | JPY 0 | JPY 2 |
Fiscal Year Ended March 31, 2014 | JPY 4 | JPY 5 | JPY 9 |
|
distributed by
|
