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Chuo Gyorui’s First Quarter Results: Increased Expenses Contributed to Operating Profit Loss

August 1, 2008

Chuo Gyorui announced first quarter results for the fiscal year ending in March 2009. As a result of merger between Chuo Reito, a consolidated subsidiary of Chuo Gyorui, and Hohsui, consolidated net sales were 48.695 billion yen, or a 13.1 percent increase; increases in transportation and storage fees resulted in a 27.3 percent decline in operating profit to 143 million yen; ordinary profit dropped 4.4 percent to 291 million yen; and net profit of the first quarter decreased 11.2 percent, amounting to 126 million yen.

On July 31, 2008 the company announced negative goodwill of 366 million yen as a result of the merger between Chuo Reito and Hohsui, which took place in April 2008. The company spoke of the cause of the negative goodwill, “Hohsui became a merging company, however it was considered a reverse acquisition. Therefore, a gain from the merger was perceived as Hohsui’s net assets, and balance between its net assets and merger consideration was determined as negative goodwill.”

The company expressed its decision to make uniformity repayment over the next 10 years. Revision of its business forecast due to the negative goodwill will not be conducted; however Hohsui, as a consolidated subsidiary, made an attendant revision on business performance, as another merger between Hohsui and Chuo Foods, an unconsolidated subsidiary, took place on August 1, 2008. Resultantly, Chuo Gyorui made a revision on its business forecast for this business term; consolidated total sales of the full financial year are 208 billion yen; operating profit is 890 million yen; ordinary profit is 1.1 billion yen; and net income is 570 million yen.

Original article published on August 1, 2008
Translated by Kiyo Hayasaka

Kyokuyo Announces First Quarter Results: Operating Profit Rises 30% Despite Revenue Decrease

July 31, 2008

Kyokuyo announced first quarter results, from April to June, for the fiscal year ending in March 2009; total sales were 36.6 billion yen, a 1.4 percent decrease from the previous year; operating profit rose 30.6 percent, amounting to 989 million yen; ordinary profit grew 28.4 percent, yielding 959 million yen; and net proceeds of the first quarter increased 30 percent, totaling 571 million yen.

The seafood division executed a thorough method of “buying optimal quantity in a timely manner,” in response to the slumping market. Its total sales remained unchanged from the previous year; and yet its profit remarkably improved compared to last year, which significantly suffered due to shrimp and salmon sales losses.

Pullbacks in spending on Chinese products and rising costs of raw materials and packaging materials resulted in revenue and profit losses in the prepared frozen food and frozen seafood divisions. Expanded sales of canned seafood secured similar profits as the previous year, in the room-temperature food category, despite losses in revenue.

The division of distribution services enjoyed a revenue increase resulting from rising freight charges; however soaring fuel costs negatively affected its profit, ending in a profit decrease.

Globally, decreased supply of bonito and tuna, resulted from the reduced number of fishing boats, and caused bonito/tuna processing and distributing businesses to lose both total sales and profit. Total sales of overseas business of purse seiners were boosted by steadily rising bonito prices; however reaching last year’s results was encumbered by climbing fuel costs and docking fees.

Original article published on July 31, 2008
Translated by Kiyo Hayasaka

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