(English Translation of the Japanese Press Release)
To all related parties:
October 27, 2016
Name of the Company: TOMY Company, Ltd. Name of the Representative: H.G. Meij
Representative Director President & CEO
(Code No. 7867; The First Section of the Tokyo Stock Exchange) Further Inquiries: Kazuhiro Kojima
Board Director
Senior Executive Officer & CFO Head of Corporate Administrations (TEL: 03-5654-1548)
Notice Concerning Revisions of Earnings Forecasts and Recording of Extraordinary Losses
TOMY Company, Ltd. (hereinafter "Tomy") hereby provides notification that it has revised its consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2017 which were announced on May 10, 2016.
In addition, Tomy hereby provides notification that it has recorded extraordinary losses in the second quarter of the fiscal year ending March 31, 2017.
-
Revisions of consolidated earnings forecasts for the first six months of the fiscal year ending March 31, 2017 (April 1, 2016 to September 30, 2016)
(millions of yen, except per-share data)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
Basic earnings per share (yen)
Previously announced forecast (A)
78,000
1,000
700
200
2.35
Revised forecast (B)
76,500
2,500
1,600
500
5.80
Increase (Decrease) (B-A)
(1,500)
1,500
900
300
-
Increase (Decrease) percentage (%)
(1.9%)
150.0%
128.6%
150.0%
-
(Reference) Actual results for the first six months of the fiscal year ended March 31, 2016
77,805
838
710
261
3.07
-
Reasons for revisions
Despite strong sales in the Japanese toy market, we have decreased our net sales forecast to 76,500 million yen due to a downturn in net sales overseas resulting from yen appreciation exceeding Tomy's expectations.
The forecast for operating income has been increased to 2,500 million yen, which is 1,500 million yen higher than initially forecast, due to strong results in the high-margin domestic toy business.
The forecast for ordinary income has been increased to 1,600 million yen, which is 900 million yen higher than initially forecast due to expectations for substantially higher operating income, despite having recorded foreign exchange losses largely attributable to reassessment of foreign currency-denominated loans to overseas subsidiaries held by Tomy due to foreign exchange market volatility.
The forecast for profit attributable to owners of parent has been increased to 500 million yen, which is 300 million yen higher than initially forecast, despite adverse effects of extraordinary losses.
Although we are aggressively working to expand business through ongoing initiatives that include launching priority products and making proposals involving appealing sales spaces, our full-year earnings forecasts remain unchanged from the initial forecasts announced on May 10, 2016, given the need to review the outlook for the peak year-end shopping season, etc.
On Tuesday, November 8, 2016, we will release our financial results for the first six months of the fiscal year ending March 31, 2017.
- Occurrence and details of extraordinary losses (July 1, 2016 to September 30, 2016)
Extraordinary losses of 541 million yen have been recorded in the second quarter (July-September) of the fiscal year ending March 31, 2017.
An impairment loss on intangible assets of 510 million yen with respect to certain baby products in Oceania have been recorded, as part of the TOMY International Group's business selection and concentration strategy.
Note concerning forecasts of earnings, etc.The forecast values that Tomy presents in this material have been determined based on information currently available to Tomy and are subject to a number of uncertainties. Accordingly, actual results may differ from the forecasted values due to the effect of future events.
End of notice
TOMY Company Ltd. published this content on 27 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 04 November 2016 01:25:06 UTC.
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