NIPPON STEEL CORPORATION
April 24, 2015
Company name: Nippon Steel & Sumitomo Metal Corporation Representative: Kosei Shindo, Representative Director and President Code number: 5401
Contact: Nozomu Takahashi, General Manager, Public Relations Center
Telephone: +81-3-6867-2135
Today, GEOSTR Corporation, a subsidiary of Nippon Steel & Sumitomo Metal Corporation, announced revision of its earnings forecasts, as per the attachment.
The impact of the revision is immaterial with regard to the consolidated earnings forecasts of Nippon Steel & Sumitomo Metal Corporation.
attachment
April 24, 2015
Company name: GEOSTR Corporation
Representative: Minori Kuriyama, Representative Director and President
Code number: 5282 (Tokyo Stock Exchange, Second Section)
Contact: Yoshitaka Furuhashi, Director, Accounting & Finance Department
Telephone: +81-3-5844-1201
In view of recent trends in performance, GEOSTR Corporation (the "Company") hereby notifies that it has revised the earnings forecasts it announced on February 27, 2015 as follows. Furthermore, the Company also hereby notifies that the amount of loss on valuation of subsidiaries' stocks that it announced as a planned amount has become established.
1. Posting of loss on valuation of subsidiaries' stocks and details of loss
As announced in the "Notice Concerning Posting of Loss on Valuation of Subsidiaries' Stocks (Planned) and Revision to Earnings Forecasts" on February 27, 2015, RESCOHOUSE Corporation, a consolidated subsidiary of the Company, will post a net loss for the fiscal year ended March 31, 2015 (fiscal 2014) and its net assets will decline significantly. Therefore, the Company has decided to post a loss on valuation of subsidiaries stocks of 443 million yen as an extraordinary loss in its non-consolidated financial statements for fiscal 2014.
However, owing to early initiatives under the earnings improvement plan at the Company, the previously announced planned amount (approximately 480 million yen) has improved. Moreover, as the loss on valuation of subsidiaries' stocks will be eliminated in the consolidated financial statements, it will have no impact on consolidated earnings.
(Million yen)
Net sales | Operating profit | Ordinary profit | Net profit | Earnings per share (Yen) | |
Previous forecasts (A) | 19,700 | (580) | (490) | (460) | (14.70) |
Revised forecasts (B) | 19,887 | (325) | (276) | (267) | (8.53) |
Increase/decrease (B-A) | 187 | 255 | 214 | 193 | － |
Change (%) | 0.9 | － | － | － | － |
(For reference) Results for fiscal 2013 ended March 31, 2014 | 23,441 | 244 | 291 | 155 | 4.98 |
(Million yen)
Net sales | Operating profit | Ordinary profit | Net profit | Earnings per share (Yen) | |
Previous forecasts (A) | 14,300 | (260) | (175) | (640) | (20.46) |
Revised forecasts (B) | 14,503 | (78) | (22) | (510) | (16.30) |
Increase/decrease (B-A) | 203 | 182 | 153 | 130 | － |
Change (%) | 1.4 | － | － | － | － |
(For reference) Results for fiscal 2013 ended March 31, 2014 | 16,646 | 130 | 209 | 112 | 3.61 |
As net sales will increase by 200 million yen, they are estimated to reach 14.5 billion yen.
With regard to operating profit and ordinary profit, the extent of losses is expected to be reduced substantially due to the increase in sales and the start of production for a large-scale project.
Furthermore, with regard to net profit, in addition to the profit-boosting factors mentioned above, extraordinary losses will decrease as outlined in "1. Posting of loss on valuation of subsidiaries' stocks and details of loss". Consequently, the net loss is expected to improve by 130 million yen versus the previous estimate to 510 million yen.
In addition, the value of orders in the overall Civil Engineering business in the current fiscal year is expected to increase sharply year-on-year, mainly due to the large-scale road project-related segment, the general sewerage- related segment and seawalls that include hybrid structures developed in the previous fiscal year.
These orders are expected to reach a record high of approximately 45.0 billion yen (an increase of 2.9 times year- on-year), compared to the previously announced amount of approximately 35.0 billion yen, due in part to a partial order in the Tokyo Outer Ring Road segment.
Consolidated net sales are expected to increase compared to the previous estimate because of the improvement in the non-consolidated performance as well as an improvement in the performance of subsidiaries, including RESCOHOUSE Corporation mentioned in 1. above. The extent of losses at the operating profit, ordinary profit and net profit level is also expected to be reduced.
Note: The above forecasts are based on information that was available on the announcement date of this release. Actual results may differ from this forecast due to various risks and uncertainties.
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