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Nichimo's Financial Report: Extraordinary Loss of \300 M. Posted, Despite Rises in Both Sales and Profit
May 19, 2009
Nichimo announced its annual financial settlement for the year ended March 2009 as follows: sales proceeds increased 1.5 percent to \99.181 billion; operating profit shot up by 35.4 percent to \587 million; ordinary earnings also rose tremendously to \284 million, or a 48.8 percent growth; however, a net deficit of \73 million was posted.
The company, commenting on the just reported fiscal results, said: "Although both sales and ordinary profit indicated increases, we finished in a net loss; an extraordinary loss of \307 million was posted due partly to write-down of marketable securities and investments in securities."
Consolidated net sales of Food Product Operations ended in \69.453 billion, an increase of \4.473 billion from the previous term. Surimi market trends displayed healthy moves, leading to a sales increase.
Marine Operations posted consolidated sales of \14.665 billon, a decline of \504 million from the term before. The fishing net and fishing gear segment, and the ship and machinery segments suffered declines in large orders, such as fixed nets. Skyrocketing fuel expenses led to fishing rests or weaker buying inclinations, negatively affecting the company's performances. In contrast, the aquaculture segment enjoyed increasing sales of aquaculture materials.
Machinery Operations reported sales of \5.248 billion, a \1.888 billion loss form the previous year, resulting from languishing exports, despite some large orders from major frozen food manufactures.
Consolidated sales of Materials Operations decreased a total of \577 million to \9.356 billion. In addition, Biotics Operations registered net sales of \338 million, a decline of \21 million.
The full year consolidated financial forecast is net sales of \105 billion; operating profit of \800 million; ordinary income of \500 million; and net profit of \400 million.
The original article was published on May 19, 2009 and was translated by Kiyo Hayasaka.
Kyokuyo Announces 60% Profit Increases in Both Seafood and Foods Operations
May 18, 2009
Kyokuyo announced its financial results for the fiscal term ended March 2009: its sales recorded a total of \145.7 billion, down 0.1 percent, showing almost no change from the term before. The rest of categories exhibited profit increases: operating profit of \2.981 billion, or a 1.9 percent rise; ordinary earnings of \2.873 billion, up 1.1 percent; and net income of \1.587, or a six percent jump. A full year dividend forecast will remain at \5 per share.
Seafood Business experienced totally opposite business environments in the first half term and the rest. During the first part of the fiscal year, in the midst of firm market trends, sales of Northern fish, i.e. Atka mackerel, and salmon and trout expanded, hitting an all time high profit record. In contrast, in the last half term, both sales and profit struggled a great deal, resulting from volatility of the foreign currency market and a consumer freeze due to the global scale financial downturn. As a consequence of efforts for development and sales of value added products, such as shrimp, its annual sales ended in a 2.8 percent drop, totaling \68.6 billion; however, operating earnings recorded a whopping 66.5 percent growth to \871 million.
The division of Processed Foods reported sales of \54.2 billion (down 1.6 percent) and operating profit of \1.055 billion (up 65.6 percent). Sales of frozen cooked foods and frozen seafood products fell below the last year's results; however, the streamlining of production systems of the affiliated plants and the passing of cost increases onto products contributed to a higher profit record than the previous year. In the category of Room-Temperature Foods, sales of such canned seafood as bonito, tuna, and mackerel, and a newly joined subsidiary, Jokki Co. Ltd., seafood delicacy appetizer manufacturer, were contributors of growth in both sales and profit, which exceeded the last year's performance.
Logistics posted sales of \6.223 billion (a 13.7 percent rise) and operating profit of \522 million (up 24.5 percent). Cold Storage Operation displayed solid performance; however, frozen carrier operation extensively suffered volatility of the currency market and a plunge in fuel prices, finishing in a drastic profit loss.
Tuna/Bonito Business' sales were \18.3 billion, up 11.8 percent, and operating earnings were 875 million, or a 34.2 percent fall. Overseas purse seine operation enjoyed a revenue growth, contributed by a bullish bonito market trend; however, after all, its profit slumped due to increases in fuel costs.
The company announced its financial projection of this fiscal year ending March 2010: \160 billion for sales; \3.4 billion for operating profit; \3.3 billion for ordinary earnings; and \1.8 billion for net profit.
The original article was published on May 18, 2009 and was translated by Kiyo Hayasaka.
Nippon Suisan's Annual Settlement Indicates Net loss of \16.2 B.
May 18, 2009
Nippon Suisan announced the results of the fiscal term ended March 2009 as follows: sales were \505.2 billion, a 5.4 percent drop; operating earnings were \3.156 billion, down 56.3 percent; and ordinary loss of \1.222 billion and net loss of \16.2 billion were reported. A whole year dividend projection will stay at \10 per share.
Slumping business operations of King & Prince Seafood in North America, and Salmones Antartica S.A. in Chile, as well as an inventory appraisal loss in Japan, threw a devastating blow. The amortization of goodwill of an overseas subsidiary, non-qualified inflation accounting, and foreign exchange losses in the dollars also affected the results.
Seafood Business reported sales of \202.4 billion (a loss of \28.4 billion by a year-to-year comparison) and operating income of \323 million (an increase of \314 million).
The reported sales of Foods Business were tallied in at \252.1 billion, marking a slight revenue increase; however, operating deficit of \1.16 billion (a decline of \2.788 billion by a year-to-year comparison) was reported, due partly to stagnating sales of Chinese products.
General Distribution Business reported decreases in both revenue and profit, caused by a drop in an amount of imported goods for the first half term, freight stagnation for the last half, as well as increasing expenses for construction of additional chilled warehouse facilities. Fine Chemicals Business also announced declines in revenue and earnings as results of a sales stagnation for raw medical materials and delayed operation of added facilities at the Kashima Plant.
The whole year financial forecast is sales of \510 billion, operating earnings of \12 billion, ordinary income of \10 billion, and net profit of \5 billion.
Strengthening Functions by Introducing Corporate Officer System
Nippon Suisan is slated to introduce a corporate officer system as of June 25. By separating executives' responsibilities for operation functions and supervision of operation executions from corporate officers' duty of operation executions, the new system aims to strengthen each function (details will be described in the next report).
The original article was published on May 18, 2009 and was translated by Kiyo Hayasaka.
Nichirei's Fiscal Results: Seafood Business Reports Operating Surplus in Six Quarters
May 13, 2009
Nichirei's consolidated financial results for the business year ended March 2009 posted increases both in revenue and profit. The reported sales of \474.5 billion, or a 2.4 percent rise over the previous year, were made possible by the following factors: a remarkable growth in the transaction amount of poultry and the smooth sailing of Logistics Business in and outside of Japan. Seafood Business accomplished a long awaited surplus for the first time in six quarters; however, hikes in costs of procuring materials and products, unfavorable performance of acerola beverage, as well as profit deterioration in the Livestock Business resulted in an operating profit of \15.142 billion, down 12.7 percentage points, and ordinary earnings of \14.171 billion, or a 16.1 percent decline. The reported net income of \6.02 billion, down 37.4 percent, was affected by the cumulative effect of lease accounting standards and an extraordinary loss on the retirement of fixed assets.
Processed Foods Business Suffers a \10 Billion Increase in Raw Material Costs
Nichirei's Processed Foods Business registered a 0.6 percent decline in sales, totaling \174 billion. President Toshiaki Murai said that "In the midst of a slump in the cold foods market, our products performed quite well; however, acelora and health foods products had a difficult time." In addition, raw material procurement costs skyrocketed: "They went up by \10 Billion, compared with last fiscal year," according to the President. Its operating earnings were slashed by half, a 50.8 percent drop to \2.023 billion.
Marine Products Business' sales were \76.078 billion, up 1.9 percentage points, which became achievable by focusing on sales of the flagship products, such as processed shrimp products and fish for sushi. Furthermore, cost reductions were made possible by integration of procurement and marketing departments, and consolidation of offices. Its operating profit realized a surplus, ending in \275 million, as opposed to a loss of \455 million in the last fiscal year.
Livestock Operation increased its sales by 10.2 percent, reporting \92.517; however, operating loss of \30 million was registered. The company said that "Including an appraisal loss, even only Brazilian poultry cost us \800 million."
Logistics reported a 2.6 percent increase in sales to \142.3 billion; contrarily, operating proceeds were tallied in at \8.231 billion, or down 3.2 percent. Though logistics network went well, the rising fuel surcharge became a huge burden in the first half term. Overseas operations reported revenue and profit rises based on foreign currency exchange rates; however the deprecation of the euro finished in the sales results similar to the previous fiscal term.
The projected numbers for this fiscal year are as follows: consolidated sales of \481.4 billion (a 1.5 percent increase by term-to-term comparison); operating earnings of \16.6 billion (a 9.6 percent rise); ordinary proceeds of \14.5 billion (a 2.3 percent growth); and net profit of \7.7 billion (a 27.9 percent increase).
The original article was published on May 13, 2009 and was translated by Kiyo Hayasaka.
Daito Gyorui's Financial Results: Unfavorable Performance of Seafood Wholesaling Reduces Earnings by Half
May 12, 2009
The consolidated sales of the previous fiscal year ended March 2009 for Daito Gyorui resulted in a 10.7 percent decrease to \153.2 billion. Its gross profit on sales dropped 12.7 percent; operating earnings fell 47.6 percent to \306 million; and ordinary income plummeted 51.5 percent to \266 million. The company posted a gain on the disposal of affiliated company shares and land, a total of 112 million, as an extraordinary gain. Nonetheless, the net profit of the previous financial year marked a 46.8 percent decline, or \68 million, as a result of an extraordinary charge of \122 million for a loss on revaluation of inventories. Dividend per share is \5.
Sales from seafood wholesaling amounted to \139.9 billion, or a 10.9 percent decline. Overall sales, including the backbone commodity of tuna, stagnated, reducing the total transaction amount to 171,000 tons, or a 9.9 percent fall. Its operating profit totaled \68 million, registering a tremendous decline of 81.8 percent.
Sales proceeds from cold storage, processing, and distribution of marine products decreased 8.1 percent to \12.908 billion; yet, operating profit recorded a 24.3 percent gain, or \84 million, because of improvement of gross margin percentage.
Sales proceeds from real estate rentals were tallied in at \330 million, an increase of five percentage points. Operating earnings posted a 10.1 percent growth to \152 million.
The projected settlement for the fiscal year ending March 2010 is as follows: consolidated sales amount of \150 billion (a 2.1 percent decline, compared with the previous term); operating earnings of \550 million (up 79.6 percent); ordinary gain of \500 million (up 87.6 percent); and net income of \260 million (up 178.9 percent).
The original article was published on May 12, 2009 and was translated by Kiyo Hayasaka.
Nichimo Downgrades Projected Settlement Due to Impairment Accounting
May 12, 2009
Nichomo announced revisions on the projected settlement for the fiscal year ended March 2009. As a consolidated entity, previously announced sales were altered from \105 billion to \100 billion and net profit of \200 million was downgraded to net deficit of \60 million. Both operating profit of \600 million and ordinary earnings of \300 million were not modified. As a single entity, the following downward revisions were made from the previously released forecast: sales of \90 billion to \80 billion; operating earnings of \400 million to \350 million; ordinary profit of \150 million to \140 million; and net income of \150 million to net loss of \470 million.
Regarding the revisions, the company said that "As both a consolidated and single entity, there were no significant changes in sales, operating profit, and ordinary income as projected; however, the net income of the last fiscal year is believed to go below the previous forecast as a result of losses on revaluation of investments in securities, among others."
The original article was published on May 12, 2009 and was translated by Kiyo Hayasaka.
Maruha-Nichiro Posts 19% Increase in Operating Profit, Totaling \15.5 B.
May 12, 2009
The financial results of Maruha-Nichiro Holdings for the business year ended March 2009 were as follows: recorded sales proceeds of \897.4 billion (an increase of 6.2 percent) and operating income of \15.5 billion (a 19.5 percent growth). In contrast, exchange rate losses caused by the sudden appreciation of the yen resulted in ordinary profit of \8.081 billion, or a 10.5 percent rise. An amount of \1.23 billion was posted as a special profit from sales of fixed assets. However, losses on revaluation of investments in securities caused by a plummet in stock prices turned out to be \7.35 billion; and total extraordinary losses of \13 billion were registered, ending in the net deficit of \6.282 billion.
Profit Gain on Surimi Operations in Northern America and Firm Domestic Market Trend
The Seafood segment earned sales of \577.7 billion, a 1.1 percent decline in comparison with the previous year, and its operating proceeds resulted in a 2.7 percent increase, totaling \8.813 billion. Fisheries and Aquaculture Operations suffered a battering of their profits inflicted by an overseas joint project of shrimp operation as well as the stagnant domestic market of cultured amberjack. Operations in Northern America, which center around production and sales of surimi, marked a profit, thanks to the firm domestic and international market trend in the face of a reduction in pollack fishing quota.
With the simultaneous global economic downturn, a situation of "kaimake" (defeat at the auction) was overturned, and while a more concentrated amount of seafood products arriving, Seafood Trading encountered abruptly shrinking demand. This unexpected trend caused prices to drop. The company could not avoid profit losses from unfavorable performances of octopus and tuna, among others.
In Wholesale Operation, stagnated sales of high-end products, i.e. tuna, made the company suffer revenue and profit declines. Strategic Sales Operation posted increases in revenue and profit as a consequence of favorable expansion of sales channels involving volume retailers and restaurants.
The segment of Food Business registered a 23.7 percent increase in sales proceeds, amounting to \291.2 billion, and a 42.7 percent growth in operating earnings, totaling \8.904 billion. The following factors contributed to these remarkable increases: 1) the results of an entire business year were counted in the previous term, as opposed to only a last half term result of Nichiro Group's Food Business considered a year before; and 2) the synergetic effect through the restructuring of main business operations came into reality.
The segment of Storage and Logistics encountered tough business environments: a decline in imports of Chinese processed products in the first half year and stagnated circulation of goods due to an economic downturn in the last half. Despite all these adverse conditions, this business segment mainly focused on the collection of livestock and frozen food products, leading to sales proceeds of \15.3 billion (up 9.1 percent) and operating earnings of \1.334 billion (a 21.8 percentage point increase).
The original article was published on May 12, 2009 and was translated by Kiyo Hayasaka.
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