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TOKYO, February 13 - CSK CORPORATION ("CSK") today revised consolidated and non-consolidated earnings forecasts for the fiscal year ending March 31, 2003. Details of the revised forecasts are as follows, along with the previous forecasts issued on November 21, 2002.
1. Revised earnings forecasts for the Fiscal year 2003 (April 1,2002 - March 31, 2003)
Consolidated forecasts
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(¥ million)
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Net sales
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Ordinary income
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Net income
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Previous (A)
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370,000
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22,000
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7,000
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Revised (B)
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360,000
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20,500
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5,000
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Change (B) - (A)
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(10,000)
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(1,500)
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(2,000)
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Change in percent
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(2.7%)
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(6.8%)
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(28.6%)
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Non-consolidated forecasts
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(¥ million)
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|
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Net sales
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Ordinary income
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Net income
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Previous (A)
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133,000
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10,500
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5,200
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Revised (B)
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130,000
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9,500
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5,000
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Change (B) - (A)
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(3,000)
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(1,000)
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(200)
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Change in percent
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(2.3%)
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(9.5%)
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(3.8%)
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2. Reasons for revision of forecasts
(A) Consolidated forecasts
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i.
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Consolidated performance of SEGA CORPORATION, our equity-method affiliate, was less favorable than expected, resulting in a decrease in earnings booked from affiliated companies, which led to lower earnings in terms of consolidated ordinary income.
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ii.
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Consolidated net income for the current fiscal year is expected to fall compared to the previous year. In addition to lower consolidated ordinary income, extraordinary losses arising from the scheduled cancellation of the substitutional benefit of the Employees' Pension Fund and the retirement of fixed assets are major factors behind the decrease in earnings.
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(B) Non-Consolidated forecasts
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i.
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Despite steady performance in terms of Net sales and operating income, a fall in ordinary income is expected due to the deterioration of non-operating income.
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3. Revised Forecasts for the Current Year Compared to Actual Earnings in the Previous Year
(A) Consolidated forecasts
Consolidated forecasts
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(¥ million)
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Previous Year's
results
(FY ended March 2002)
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Current Year's
forecasts
(FY ending March 2003)
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Change
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Change
in
percent
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Net sales
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423,703
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360,000
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(63,703)
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(15.0%)
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Operating income
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15,394
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25,000
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9,606
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62.4%
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Ordinary income
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5,410
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20,500
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15,090
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278.9%
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Net income
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14,220
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5,000
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(9,220)
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(64.8%)
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1)
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A drop in net sales is expected for the current fiscal year due to exclusion at the end of the previous year of two subsidiaries from the consolidated list of companies. ASCII CORPORATION (now MEDIALEAVES CORPORATION) and CSK ELECTRONICS CORPORATION (now T-ZONE CORPORATION) were excluded from the list of consolidated companies following transfer of their management control outside the Group. After excluding net sales of these two subsidiaries from the previous year's record results, estimated net sales for the current fiscal year exceed those of the previous year by 18.2 billion yen.
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2)
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Consolidated operating income for the current fiscal year is expected to rise by 62.4% compared to the previous year. In addition to the favorable business performance of CSK and its subsidiaries, elimination of operating losses incurred by ASCII CORPORATION and CSK ELECTRONICS CORPORATION in the previous year may also contribute to higher earnings.
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3)
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Consolidated ordinary income for the current fiscal year is expected to increase substantially compared to the previous year. In addition to higher operating income, higher income booked from an equity-method affiliate may also contribute increased consolidated earnings. Due to a substantial increase in earnings, the said equity method affiliate, SEGA CORPORATION, is expected to return to profitability in the current fiscal year, in contrast to the previous year's negative results, and may contribute greatly to improvement of consolidated earnings.
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4)
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Consolidated net income for the current fiscal year is expected to decline compared to the previous year due to a temporary factor, that is, a decrease in tax effects as a result of extraordinary losses incurred in relation to the transfer of management control of ASCII CORPORATION and CSK ELECTRONICS CORPORATION outside the Group, which was reflected in last year's results. Despite this decline, group restructuring and a systematic group management are reflected in substantial improvements in the group's consolidated performance in terms of higher operating income and ordinary income.
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(B) Non-consolidated forecasts
Non-consolidated forecasts
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(¥ million)
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Previous Year's
results
(FY ended March 2002)
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Current Year's
forecasts
(FY ending March 2003)
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Change
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Change
in
percent
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Net sales
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127,633
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130,000
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2,367
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1.9%
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Operating income
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10,532
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11,000
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468
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4.4%
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Ordinary income
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9,202
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9,500
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298
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3.2%
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Net income (loss)
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(29,852)
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5,000
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34,852
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- |
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1)
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Despite a reduction in financial consolidated-related project that constituted a major part of our business in the previous year, net sales for the current fiscal year are expected to grow by 1.9% as growth in the ERP-related system integration projects.
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2)
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Operating income and ordinary income for the current fiscal year are expected rise by 4.4% and 3.2% respectively compared to the previous year. In addition to the growth in net sales, consistent cost-reduction efforts may contribute to a rise in earnings.
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3)
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Net income for the current fiscal year is expected to rise by a substantial 34.8 billion yen compared to the previous year. In addition to the favorable performance of ordinary income, elimination of losses arising from restructuring in the previous year may also contribute to earnings growth.
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