OKI Revises First-half and Full Year Projections for the Fiscal Year ending March 31, 2009
TOKYO, October 31, 2008 -- Oki Electric Industry Co., Ltd. (TSE:6703) today announced it has revised its earnings projections for the first half (from April 1, 2008 to Sept. 30, 2008) and full year for the fiscal year ending March 31, 2009, from its previous projections announced in August 14, 2008.
1. Revision of consolidated first half projections for the fiscal year ending March 31, 2009
(From April 1, 2008 to September 30, 2008)
| Net sales | Operating income |
Recurring income |
Net income | Net income per share |
|
|---|---|---|---|---|---|
| Billion yen | Billion yen | Billion yen | Billion yen | yen | |
| Previous projections (A) | 300.0 | -9.0 | -12.5 | -24.5 | -35.86 |
| Revised projections (B) | 286.9 | -10.6 | -13.3 | -35.3 | -51.68 |
| Changes (B-A) | -13.1 | -1.6 | -0.8 | -10.8 | — |
| Percent change (%) | -4.4 | -17.8 | -6.4 | -44.1 | — |
| Reference: Results for the 1H, fiscal year ended March 2008 |
327.6 | -7.1 | -11.0 | -12.5 | -18.27 |
2. Revision of consolidated full year projections for the fiscal year ending March 31, 2009
(From April 1, 2008 to March 31, 2009)
| Net sales | Operating income |
Recurring income |
Net income | Net income per share |
|
|---|---|---|---|---|---|
| Billion yen | Billion yen | Billion yen | Billion yen | yen | |
| Previous projections (A) | 629.0 | 7.0 | 0.5 | -17.5 | -25.62 |
| Revised projections (B) | 585.0 | 3.0 | -3.0 | -33.0 | -48.32 |
| Changes (B-A) | -44.0 | -4.0 | -3.5 | -15.5 | — |
| Percent change (%) | -7.0 | -57.1 | — | -88.6 | — |
| Reference: Results for the full fiscal year ended March 2008 | 719.7 | 6.2 | -3.9 | 0.6 | 0.83 |
3. Reasons of revision
OKI's performance in the first half of the fiscal year ending March 2009 proceeded approximately as planned. However, semiconductor net sales will decline due to the following reasons:
- LCD panel manufacturers shift to producing LSIs in-house
- Product volume decline due to delay in developing new P2ROM products and market deterioration
OKI expects that these factors will impact the decline in operating income.
Net loss will increase from previous announcement, as OKI includes 5.2 billion yen of loss on semiconductor business share transfer in its extraordinary loss.
Impacted by the worsened semiconductor business in the first half, OKI also expects full year projections to decline from its previous projections. OKI's businesses, excluding semiconductors, will decline as the sharp appreciation of the yen impacts net sales, in addition to the acceleration of business selection and concentration of the telecom business. Operating income remains the same as previous annoucement as its efforts in reducing fixed costs will offset the decline in sales and impact of currency exchange.
Net loss will increase as OKI included 4.0 billion yen special retirement payments in its extraordinary loss.
About Oki Electric Industry Co., Ltd.
Founded in 1881, Oki Electric Industry Co., Ltd. is Japan's first telecommunications manufacturer, with its headquarters in Tokyo, Japan. OKI provides top-quality products, technologies and solutions to its customers through its info-telecom system business and printer business. All businesses function as a collective force to create exciting new products and technologies that satisfy a spectrum of customer needs in various markets. Visit OKI's global web site at http://www.oki.com/.
- Amounts are rounded to the nearest hundred million.
- The projections and plans in this document are subject to change depending upon the changes of business environments and other conditions.
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- * Information in the press releases is current on the date of the press announcement, but is subject to change without prior notice.