February 7, 2017
Listed Company Name: Sumitomo Metal Mining Co., Ltd. Listings: Tokyo Stock Exchange
Code: 5713
Representative: Yoshiaki Nakazato, President Contact: Tsuyoshi Nozawa, Deputy
General Manager, PR & IR Dept.
Tel: +81-3-3436-7705
Revision of Results Forecast and the Return of Executive Compensation
The following revisions have been made to the results forecast announced on November 11, 2016 for the fiscal year ending March 2017 (April 1, 2016 - March 31, 2017), in consideration of recent trends in the Company's business performance and other factors.
-
Revision of Results Forecast
Revision of consolidated results forecast for the year ending March 2017 (April 1, 2016 - March 31, 2017)
(yen in millions; %)
Net Sales
Operating Income
Ordinary Income
Profit attributable to owners of parent
Net profit per share
Previous revised forecast (A)
714,000
48,000
33,000
19,000
34.44
Revised forecast (B)
775,000
76,000
1,000
-15,000
-27.19
Net increase/decrease ((B)-(A))
61,000
28,000
-32,000
-34,000
Net increase
/decrease (percentage)
8.5%
58.3%
-97.0%
-
(Reference) Actual results for the fiscal year ended March 2016
855,407
59,720
-12,764
-309
-0.56
Reasons for forecast revisions
-
Dividend Forecast
There are no changes to the year-end dividend forecast of ¥6.00 per share announced on November 11, 2016.
- Return of Executive Compensation
Key non-ferrous metal prices have risen since the previous announcement of forecast on November 11, 2016, and the yen has depreciated rapidly through the end of the third quarter accounting period due to expectations toward U.S. economic policy. In light of these conditions, we have revised the results forecast with reference to the current exchange rate and key non-ferrous metal prices. Although operating income is expected to increase compared with the previous results forecast, we expect ordinary income to decline significantly and expect net profit for the period attributable to owners of the parent company to yield a loss, due to factors including the recording of an equity method investment loss resulting from the impairment loss recorded by Sierra Gorda SCM in the third quarter consolidated accounting period.
Regarding this situation, executive officers have offered to return a part of their compensation as below:
President & Representative director: 30% of monthly compensation Senior Managing Executive Officer (1 person)
:30% of monthly compensation
Managing Executive Officer(1 person) :20% of monthly compensation Executive Officer (3 persons) :20% of monthly compensation
Period: 3 months from February to April, 2017
Metal price and exchange rate assumptions are as follows.
Unit | FY 2016 forecast | ||
Previous | Current | ||
Copper | $/t | 4,726 | 5,046 |
Gold | $/TOZ | 1,273.4 | 1,240.8 |
Nickel | $/lb | 4.54 | 4.46 |
Exchange rate (TTM) | ¥/$ | 102.66 | 108.74 |
Cautionary statement: The results forecast and dividend forecast above were created on the basis of information available at the time of the release of these materials. Actual results may diverge from the above forecast values, dependent on a variety of factors.
Sumitomo Metal Mining Co. Ltd. published this content on 07 February 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 March 2017 11:38:17 UTC.
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