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Kyokuyo's Financial Report: Operating Earnings Drop 27%

May 17, 2010

Kyokuyo posted its financial results for the year ended March 31, 2010 as follows: sales in the amount of \145.8 billion, a fall of 1.2 percent year over year; operating earnings in the amount of \2.18 billion, down 26.9 percent; ordinary income in the amount of \2.55 billion, a drop of 11.2 percent; and net profit in the amount of 1.086 billion, down 31.6 percent. A dividend remained at \5 per share.

The Marine Products Purchasing operations recorded sales in the amount of \65.1 billion, representing a 5 percent fall over the previous year result. Its operating profit grew 26 percent, totaling \1.098 billion.

During the first half of the year, transaction volumes of Northern fish varieties, such as flounder, slumped and on top of that the retail values of crab and other high unit price foodstuffs tumbled, ending in stagnant sales growth. In the last half of the fiscal year, the weakening prices of shrimp and crab stimulated consumption, which however was not enough to affect the results of the entire fiscal term. In contrast, better profitability performance than the first half was seen as a result of the Company's focused efforts to develop and market added value products of Matsubara stingfish filet, salmon and shrimp, and to conduct a thorough practice of purchasing the right amount at the right time, paying extra attention to profitability.

The Processed Food operations posted sales of \55.3 billion, up 2 percent year over year, and operating earnings of \856 million, a decline of 19 percentage points.

Favorable Sales Performance of Sushi-Related Products

The Frozen Seafood business pulled off a smooth performance in both sales and profit, which was possible by the Company's intense efforts to expand sales of sushi toppings and heating-required foods for the domestic market and of sushi-related products manufactured by a joint company in Thailand, KUE, for the European and American markets. The Cooked Frozen Food business experienced a decline in processed meat products, resulting from circumstances surrounding raw materials. Additionally, stagnant sales in domestically manufactured fried seafood and kneaded fish products occurred. Mostly canned marine foods in the Room Temperature Food business grew sales volume. An appetizer maker, Jokki, which recently joined as a consolidated subsidiary, also made conscious efforts to generate more demand from its existing clients and broaden sales, cumulating in sales and income increases exceeding the previous year results.

The Logistics business reported revenues of \5.1 billion, a decline of 19 percent year over year, and operating income of \62 million, down 88 percent. The results were affected by sluggish moves of goods as a whole and slumped transportation fees on a global scale and exchange rate fluctuations in the Cold Storage Shipping operation.

Tuna Operations increased 11 percent in sales year over year to \20.3 billion; however operating income totaled \576 million, a 34 percent drop.

In the Processing and Whole Selling business, both revenues and profit grew, outdoing the previous year's performance, as a result of improvements in overseas purchasing and the expansion of sales channels in the restaurant sector. Contrarily, the Tuna Fishery business had to post reductions in revenues and earnings. The Company's bluefin aquaculture operation, which began in full swing last October, received great feedback on its fish quality, nevertheless, the fresh tuna market tumbled, leaving the Company with the sales result well below the original forecast.

The business forecast for the new fiscal year is sales of \155 billion, operating income of \3 billion, ordinary earnings of \2.8 billion, and net income of \1.5 billion.

The original article was published on May 17, 2010 and was translated by Kiyo Hayasaka.

Nippon Suisan's Financial Statement Shows Improvement Despite Revenue Decline

May 17, 2010

Nippon Suisan announced its financial results for the year ended March 31, 2010 as follows: sales of \481.6 billion, down 4.7 percent year over year; operating income of 6.227 billion, up 97 percent; ordinary earnings of \6.174 billion, a comeback from a deficit of \1.222 billion in the previous year; and net profit of \44 million, a recovery from a loss of \16.2 billion a year ago. Though the original forecast was not met, significant improvements were accomplished in comparison with the prior year results. Extraordinary losses on impairment long-lived assets of Nissui Indonesia and on disposal of fixed assets, a total of \2.2 billion, were posted. A dividend stayed at \10 per share.

Marine Products Business: Decreased Transaction Volumes, Leading to Decline in Unit Prices

The Marine Products Business registered sales in the amount of \177.2 billion, a reduction of \25.2 billion from the last fiscal year; and an operating deficit in the amount of \2.3 billion, a loss of \2.6 billion year over year. In contrast, the Foods Business exhibited a slight sales decline to \251.5 billion, however operating earnings ended in \4.5 billion, an increase of \5.7 billion from the last business year.

In the Marine Products Business, outside of a rise of 11,000 tons in surimi transaction volume, major fish products, crab, shrimp, salmon/trout, and cod roe all shrank. Unit prices, except salmon/trout, also plunged. Surimi, despite the Company's effort to increase the amount, experienced a 36 percent tumble in unit price, ending in a \1.2 billion sales drop. Grim pictures were seen also overseas in North America, South America, Europe, and Asia.

In the Foods Business, despite a plunge in retail prices of chilled foods and a sales volume decline in the domestic market, sales in frozen prepared foods, shelf-stable foods, fish sausage and ham performed well. King & Prince Seafood Corp. in North America managed to lessen a deficit amount with cost-cutting efforts. Shandong Sanfod Nissui in China improved earnings. A breakdown of the operating profit of the Foods Business is frozen foods 50 percent, kneaded fish and fish sausage and ham 40 percent, and shelf-stable foods 10 percent.

Sales of \11.6 billion, an increase of \353 million, and operating income of \1.7 billion, an approx. \200 million drop, were recorded in the General Distribution Business. In the Fine Chemicals Business, sound performance by pharmaceutical and health foods operations, in spite of a fixed expense increase due to the construction of an additional facility to Kashima Plant, contributed to increased revenues and profit. The sales of this segment amounted to \23.5 billion, up \2 billion, and operating profit increased \149 million to \4.7 billion.

The company projects for the new fiscal year sales of \515 billion, operating income of \13 billion, ordinary proceeds of \12 billion, and net profit of \6 billion.

The original article was published on May 17, 2010 and was translated by Kiyo Hayasaka.

Hayashikane Sangyo, Feed Maker, Revises Financial Settlement Upward

May 14, 2010

Hayashikane Sangyo revised its financial settlement (consolidated and individual) for the year ended on March 2010.

In the fourth quarter, sales of kneaded fish products fell short of the forecasted figures; however net sales achieved planned results, owing to favorable sales in aquaculture feed. The consolidated net sales after the revision came to \51.566 billion, up 0.1 percent from the previous forecast.

In addition, there is a chance that both operating and ordinary earnings will exceed estimated amounts as a result of cutbacks in fixed costs and expenses, ending with upward revisions: an operating profit of \956 million, an increase of 13.8 percent from the previous projection, and the ordinary earnings of \707 million, up 10.5 percent.

Net income is believed to fall below the previous prediction due to deferred income taxes. It was revised downward to \96 million, down 12.1 percent.

The original article was published on May 14, 2010 and was translated by Kiyo Hayasaka.

Maruha Nichiro Holds Salmon Cooking Class for Family

May 14, 2010

Maruha Nichiro, commemorating the 100th year anniversary of salmon can, is to invite 40 pairs, a total of 80 people, to "Summer Vacation: Canned Salmon Cooking Class for Family."

The invent will be held four different times in the morning and afternoon on July 25 and August 22. The event location will be Koto City Civic Center in Tokyo. Scheduled activities entail the cooking of an easy, full course meal using canned salmon and the making of "the world's only canned food" filling a can with the original recipes by a home canner.

How to apply: send a postcard with participants' names and ages, address and phone number, as well as preferred date and time to "Summer Vacation: Canned Salmon Cooking Class for Family," Maruha Nichiro Foods, 1-1-2 Otemachi, Chiyoda-ku, Tokyo 100-0004. It must be postmarked by June 15.

The original article was published on May 14, 2010 and was translated by Kiyo Hayasaka.

Leading Frozen Foods Maker Nichirei Aims for Steady Growth in Three-Year Plan

May 14, 2010

Nichirei announced, on May 11, its new three-year medium-term business plan "Energy 2012" to be performed starting in 2010. The new business plan embraces a concept of the sustainable future growth by carrying out business operations driven by employees' "energy" and dynamically executing the plan toward the achievement of its vision.

As the business environment is projected to stay harsh, the company seeks lasting profit growth by analyzing the current business condition, steadily implementing business strategies, and promptly responding to changes in business circumstances. During the first half year of the plan, in particular, the recovery of Processed Foods operations will be the company's uppermost focal point; and in the last half, the company will be intent on soundly yielding more results from capital investments aggressively carried out during the previous medium-term business plan. The company will furthermore aim to pursue strategies to ensure the number one status of each business operation, which includes the cultivation of overseas market opportunities.

The target numbers for FY 2012 are sales \486.8 billion (\438.1 billion for the year ended March 2010); operating profit \18.8 billion (\16.8 billion); ordinary earnings \17.1 billion (\15.4 billion); and net income 9.3 billion (\9 billion).

The original article was published on May 14, 2010 and was translated by Kiyo Hayasaka.

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