Maruhanichiro Holdings Make A Significant Downward Revision of Net Profit
May 8, 2008
Maruhanichiro Holdings revised its original forecast of combined profit for the business year ending in March on May 7, 2008. The revisions are as follows: overall volume of sales decreased from 850 billion to 844.78 billion yen; operating profit increased from 12.5 billion to 13 billion yen; ordinary profit decreased from 9 billion to 7.31 billion yen; net income decreased from 500 million to 60 million yen.
The company cited as cause for these revisions: harsh competition for seafood products worldwide and the resultant increase in purchasing costs; and the stagnancy and severity of conditions in the Japanese market, impacting the seafood and food industries. Maruhanichiro Holdings expects slight operating profit gain, despite Tenyo Food’s incident’s affect on consumer attitudes towards frozen food. The gain is expected due to declines in import costs for fish, supported by the appreciation of the yen and steady operation of Japanese fish farms. The ordinary profit and net profit are expected to drop, because of foreign exchange gain or loss.