|
TOKYO, April 24, 2003 - CSK CORPORATION ("CSK") today issued revised consolidated and non-consolidated forecasts for the financial year ended March 31, 2003. Details of the revised forecasts are as follows, along with the previous forecasts issued on February 13, 2003.
1. Revised earnings forecasts for the fiscal year ended March 31, 2003
(1) Consolidated forecasts
|
(¥ million)
|
|
|
Net sales
|
Ordinary income
|
Net income
|
|
Previous (A)
|
360,000
|
20,500
|
5,000
|
|
Revised (B)
|
358,000
|
15,500
|
10,000
|
|
Change (B) - (A)
|
(2,000)
|
(5,000)
|
5,000
|
|
Change in percent
|
(0.6%)
|
(24.4%)
|
100.0%
|
|
(2) Non-consolidated forecasts
|
(¥ million)
|
|
|
Net sales
|
Ordinary income
|
Net income
|
|
Previous (A)
|
130,000
|
9,500
|
5,000
|
|
Revised (B)
|
129,340
|
7,090
|
(47,750)
|
|
Change (B) - (A)
|
(660)
|
(2,410)
|
(52,750)
|
|
Change in percent
|
(0.5%)
|
(25.4%)
|
--
|
|
2. Reasons for revision of forecasts
(1) Consolidated forecasts
| i. |
Forecast net sales has been adjusted slightly downward but is still largely in line with the previous forecast. |
|
ii. |
Forecast ordinary income has been lowered ¥5.0 billion, reflecting a decline in operational revenue as weak business confidence negatively affected IT investment by customers, and other factors including higher non-operating losses following downturns in domestic and overseas stock markets. |
|
iii. |
Net income is expected to be ¥5.0 billion higher than forecast on February 13, 2003, resulting from tax adjustments arising from appraisal losses booked on investment
securities. |
(2) Non-consolidated forecasts
| i. |
Forecast net sales has been adjusted slightly downward but is still largely in line with the previous forecast. |
|
ii. |
Forecast ordinary income is ¥2.4 billion below the previous forecast because of increased non-operating losses following downturns in domestic and overseas stock markets, and because of low profit margins on computer and other product sales. |
|
iii. |
Net income is expected to be ¥52.7 billion less than previously forecast, because of an appraisal loss on marketable securities that was accounted for using accounting standards for financial instruments. |
3. Revised Forecast for the current Year Compared to Actual Earnings in the Previous Year
(1) Consolidated forecasts
|
(¥ million)
|
|
|
Previous Full Year Results
(FY ended March 2002)
|
Current Full Year Forecasts
(FY ended March 2003)
|
Change
|
Change in percent
|
|
Net sales
|
423,703
|
358,000
|
(65,703)
|
(15.5%)
|
|
Operating income
|
15,394
|
22,000
|
6,606
|
42.9%
|
|
Ordinary income
|
5,410
|
15,500
|
10,090
|
186.5%
|
|
Net income
|
14,220
|
10,000
|
(4,220)
|
(29.7%)
|
|
| i. |
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 results, estimated net sales for the current fiscal year exceed those of the previous year by ¥16.2 billion. |
| ii. |
Operating income for the current fiscal year is expected to rise by ¥6.6 billion 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. |
| iii. |
Ordinary income is expected to improve substantially because of the increase in operating income and a turnaround at SEGA CORPORATION, an affiliated company to which the equity method is applied and which managed to return to profit this year after reporting a net loss the year before. |
|
iv.
|
With regard to net income, extraordinary income was much lower than the previous year because of a decrease in sales of investment securities and dilution of equity in earnings of affiliates. Tax adjustments did arise from appraisal losses booked on investment securities, but the adjustment amount was lower than last year as we have conservatively estimated the amount of deferred tax assets. These factors contributed to a ¥4.2 billion decline in forecast net income.
However, given the substantial improvement in operating and ordinary income, the achievements of the Group's business reorganization and systematic management can clearly be seen in the consolidated earnings forecast. |
(2) Non-consolidated results
|
(¥ million)
|
|
|
Previous Full Year Results
(FY ended March 2002)
|
Current Full Year Forecasts
(FY ended March 2003)
|
Change
|
Change in percent
|
|
Net sales
|
127,633
|
129,340
|
1,707
|
1.3%
|
|
Operating income
|
10,532
|
10,200
|
(332)
|
(3.2%)
|
|
Ordinary income
|
9,202
|
7,090
|
(2,112)
|
(23.0%)
|
|
Net income
|
(29,852)
|
(47,750)
|
(17,898) |
--
|
|
| i. |
Growth in ERP-related systems integration projects compensated for a reduction in financial consolidation-related projects, while alliances with vendors in sales of computers and other products rose. Non-consolidated net sales are forecast to increase 1.3% to their highest ever level. |
| ii. |
Forecast operating income is almost the same as the year before, but ordinary income is expected to fall 23.0% due to increased losses from investments in partnerships following the downturn in the stock market. |
| iii. |
Non-consolidated net income is expected to decrease ¥17.8 billion year on year, as a result of the fall in ordinary income and an appraisal loss of ¥77.2 billion based on accounting standards for financial instruments on investment securities.
|
|
