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Tokyo, September 25, 2008 - CSK HOLDINGS CORPORATION ("CSK") today announced the following revisions of its consolidated interim and full-year forecasts for the fiscal year ending March 31, 2009, which were announced on May 8, 2008.
Consolidated interim forecast revisions (for the six months from April 1, 2008 to September 30, 2008)
(Million yen)
| |
Sales |
Operating
income
(loss) |
Ordinary
income
(loss) |
Net income
(loss) |
Net income
(loss)
per share (¥) |
Previously announced
forecast (A) |
118,000 |
7,300 |
8,100 |
3,700 |
50.14 |
| Revised forecast (B) |
104,000 |
(14,000) |
(13,500) |
(12,000) |
(162.61) |
| Difference (B-A) |
(14,000) |
(21,300) |
(21,600) |
(15,700) |
- |
| Change in % |
(11.9) |
(291.8) |
(266.7) |
(424.3) |
- |
For reference:
Previous interim results
(Apr. 1, 2007 to Sept. 30, 2007) |
125,321 |
19,150 |
19,980 |
12,083 |
163.89 |
Consolidated full-year forecast revisions (for the fiscal year from April 1, 2008 to March 31, 2009)
(Million yen)
| |
Sales |
Operating
income
(loss) |
Ordinary
income
(loss) |
Net income
(loss) |
Net income
(loss)
per share (¥) |
Previously announced
forecast (A) |
255,000 |
23,000 |
24,500 |
12,000 |
155.78 |
| Revised forecast (B) |
217,000 |
(13,000) |
(12,000) |
(14,000) |
(181.74) |
| Difference (B-A) |
(38,000) |
(36,000) |
(36,500) |
(26,000) |
- |
| Change in % |
(14.9) |
(156.5) |
(149.0) |
(216.7) |
- |
For reference:
Previous full-year results
(Apr. 1, 2007 to Mar. 31, 2008) |
239,695 |
19,256 |
20,634 |
1,272 |
17.34 |
Reasons for revisions
- The IT services business has grown steadily, supported by a strong investment appetite among client companies, but in technology services some projects are projected to be unprofitable, and in business services there has been a slowdown in new orders for verification services, technical support and other services. Furthermore, we have decided to be conservative in forecasting our results for the fiscal second half, as a result of careful consideration of the trend among companies to curb investment. As a result of these factors, we project that sales and operating income for the interim and full-year periods will be lower than our previously announced forecasts.
- In the financial services business, there are concerns with respect to the real estate securitization business that the tightening of real estate-related lending practices will continue in the future, due to the impact of the turmoil in the global financial system and real estate markets triggered by the sub-prime problem. As a result of this business environment, assets expected to be have been sold in the first half of the fiscal year have not been sold yet, and we intend to change our price expectations for some of our real estate investment holdings as appropriate. For the second half of the year, we have decided to carefully proceed with asset sales while closely monitoring market trends, with the aim of scaling down our holdings of assets under management in financial services, and to conservatively revise our forecasts.
With respect to equity and other financial product investment business and venture capital business, we intend to book write-downs on some of our holdings of marketable securities.
For these reasons, we project that sales and operating income will be lower than our previously announced forecasts, and that we will record an operating loss.
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In the securities business, we have been actively proceeding with cost cutting and business structure reorganization, including organizational reform and sales system restructuring at Cosmo Securities based on the plan for Cosmo Securities to specialize in retail business. However, it will take time for these initiatives to contribute to results, and the impact of the downturn in the equity markets means that we cannot expect any fast recovery in operating revenue. As a result, we project that sales and operating income will be lower than our previously announced forecasts, and that we will record an operating loss.
The following are breakdowns of the assumptions behind our revised forecasts.
Interim period
- Sales
The revised forecast of ¥104 billion assumes that sales will be approximately ¥11.6 billion lower than the previously announced forecast in the financial services business and securities business, and approximately ¥2.4 billion lower in the IT services business.
- Operating income
The revised forecast of an operating loss of ¥14 billion assumes that operating income will be approximately ¥20.3 billion yen lower than the previously announced forecast in the financial services business and securities business, and approximately ¥1 billion lower in the IT services business.
- Ordinary income
The revised forecast of an ordinary loss of ¥13.5 billion mainly reflects our assumption of a decline in operating income.
- Net income
The revised forecast of a net loss of ¥12 billion reflects our assumptions of declines in sales, operating income and ordinary income, and our assumptions on the impact of income tax and other factors.
Full-year period
- Sales
The revised forecast of ¥217 billion assumes that sales will be approximately ¥27.5 billion lower than the previously announced forecast in the financial services business and securities business, and approximately ¥10.5 billion lower in the IT services business.
- Operating income
The revised forecast of an operating loss of ¥13 billion assumes that operating income will be approximately ¥32.8 billion lower than the previously announced forecast in the financial services business and securities business, and approximately ¥3.2 billion lower in the IT services business.
- Ordinary income
The revised forecast of an ordinary loss of ¥12 billion mainly reflects our assumption of a decline in operating income.
- Net income
The revised forecast of a net loss of ¥14 billion reflects our assumptions of declines in sales, operating income and ordinary income, and our assumptions on the impact of income tax and other factors.
Note: Previously announced interim and full-year forecasts for net income per share are those announced with our first quarter financial results on August 6, 2008.
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