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Location: Home > About OKI > Investor Relations > Notice on Recording Extraordinary Loss and the Revision of Consolidated Earnings Projections for the Fiscal Year Ended March 31, 2019


Investor Relations

IR Announcement IR Announcement

April 26, 2019

To Whom It May Concern

Company
Oki Electric Industry Co., Ltd.
Representative
Shinya Kamagami
President
Representative Director
Code
6703 (First Section, TSE)
Contact
Atsushi Yamauchi
General Manager
Investor Relations
TEL
+81-3-3501-3836

Notice on Recording Extraordinary Loss and the Revision of Consolidated Earnings Projections for the Fiscal Year Ended March 31, 2019

OKI has recorded extraordinary loss and revised its consolidated earnings projections for the fiscal year ended March 31, 2019 (April 1, 2018 to March 31, 2019) from its previous projections announced on February 1, 2019.

1. Recording of extraordinary loss

The decline in profitability for the OKI's business assets is recongnized. Accordingly, based on the Accounting Standard for Impairment of Fixed Assets, OKI will record an impairment loss of 2.9 billion yen for manufacturing equipment, etc. of the Mechatronics Systems business as an extraordinaly loss.

2. Revision of consolidated earnings projections for the fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)

  Net sales Operating income Ordinary income Profit attributable to owners of parent Net income per share
  Billion yen Billion yen Billion yen Billion yen Yen
Previous projections (A) 440.0 15.0 13.0 5.0 57.81
Revised projections (B) 441.0 17.5 15.5 8.5 98.26
Changes (B-A) 1.0 2.5 2.5 3.5
Percent change (%) 0.2 16.7 19.2 70.0
Reference: Results for the fiscal year ended March 31, 2018 438.0 7.7 8.5 5.9 67.86

Reasons of revision

In the ICT business, the stable peroformance continues. The effect of outflow cost reduction and improved profitability of some projects, such as networks and IoT-related, seems more than expected.

Regarding the Mechatronics Systems business, we assumed the impact of delay in some structural reforms focusing on Brazilian subdsidiary in our previous projections. However, the progress of improvement of the cost structure in Japanese and Chinese subsidiaries is expected to offset such impact.

Consequently, as a consolidated result, operating income and ordinary income are expected to exceed the previous projections. Moreover, profit attributable to owners of parent is also expected to exceed the previous projection even with the extraordinary loss mentioned above.

  • *Amounts are rounded to the nearest hundred million.
  • *The projections and plans on this document are subject to change depending upon the changes of business environments and other conditions.

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