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Nippon Suisan Announces Net Loss of \1.3B for Q2 Caused by Diminished Sales and Earnings

November 8, 2010

Nippon Suisan's second quarterly business performance for FY03/2011 is sales of \237.2 billion (down 1.7 percent), operating profit of \3.314 billion (down 12.9 percent), ordinary proceeds of \684 million (down 77.5 percent), and net loss of \1.321 billion (net income of \1.031 last year).

Slack Overseas Operations in Marine Products Business Generates Operating Loss

The Marine Products Business cited sales of \80.8 billion, a tumble of \4.9 billion year over year, and operating loss of \1.224 billion, a \134 million gain from the operating deficit recorded at this period last year. Hakata Marukita Suisan joined as a consolidated subsidiary; on the other hand, the output of cod roe in North America contracted, so did sales prices. Even though Netuno International S.A. became a consolidated subsidiary in South America and salmon farming business experienced an ameliorating effect of business structure and improved fish prices, fisheries operations suffered a substantial reduction in landings. Moreover, sales volume slumped in Europe in such a tough market environment.

The Processed Foods Business finished the quarter with sales \131.7 billion (up \850 million from the same quarter last year) and operating profit \2.5 billion (down \200 million). Delmar Co. Ltd. became one of Nissui's consolidated subsidiaries in Japan. In a market condition relentlessly partial to value-priced products, frozen foods managed to maintain sales; however, fish sausage and ham and kneaded fish products added more sales charges, while raw material costs also climbed up. Notwithstanding the fact that the professional-grade frozen food sector was lackluster in North America, the positive effect of management improve effort was witnessed.

Fine Chemicals Business' Revenue and Profit Increases

Expanded sales volume of pharmaceuticals and health products contributed to sales of \12.6 billion (up \800 million on a year-over-year basis) and operating profit of \2.8 billion (up \300 million) in the Fine Chemicals Business. The General Distribution Business reported sales of \5.8 billion, a rise of \32 million, and operating earnings of \700 million, a drop of \245 million, as a result of reduced storage cargos, combined with sluggish goods movement.

The original article was published on November 8, 2010 and was translated by Kiyo Hayasaka

Maruha Nichiro's Q2 Demonstrates Substantial Profit Gain Due to Improved Performance of Seafood Business

November 2, 2010

Marine Products Tradings Unit and Fisheries & Aquaculture Unit's Contribution

The Maruha Nichiro Holdings announced its consolidated financial statement for the second quarter of FY03/2011. Sales remained almost unchanged from the same quarter last year at \405.2 billion. With improved profits of Fishery Operations owing to recuperating market, the consolidated earnings marked substantial profit gains, registering an 86.5 percent rise in operating income to \8.185 and a 99.3 percent growth in ordinary proceeds to \6.284 billion. Nonetheless, its quarterly net income ended at \2.216 billion, down 13.3 percent, attributable to an impairment loss of \899 million, a loss on revaluation of investments in securities of \528 million, and net interest income of \1.053 billion stemmed from the dearer yen.

Fishery Operations recorded a \400 million gain on a year-on-year basis, raking in \253.5 billion in revenue. Profit of the segment was \3.243 billion (a deficit of \619 million YOY), a profit increase of \3.862 billion.

The Fisheries & Aquaculture Unit ended the quarter with \15.1 billion in sales, up \2.5 billion from the corresponding quarter a year ago, and \100 million in operating income, up \1.3 billion compared to a year ago. The Unit pulled off the feat by expanding sales volume of tuna and kampachi in aquaculture business and benefiting from a reviving market trend.

The North America Operation Unit brought home sales of \25.1 billion, an increase of \500 million, and operating earnings of \400 million, a rise of \600 million. Against a backdrop of a diminished fishing quota of Alaska pollack, the Unit focused on expense cutbacks by shortened operation time and consolidation of mother ship companies, and simultaneously the domestic surimi market picked up, making revenue and profit increases attainable.

The Marine Products Tradings Unit cited sales of \39.8 billion, about the same as last year, and operating earnings of \2.9 billion, up \2.5 billion. Flagship items, shrimp, salmon, and crab, exhibited stationary moves, despite which the Unit finished with an outstanding profit increase.

The Marine Products Wholesaling Unit reported sales of \145.4 billion (a decline of \3.8 billion) and a loss of \300 million in operating profit. The Strategic Sales Unit achieved a revenue growth, but declined profit was also registered, with sales \28.1 billion, up \1.4 billion, and operating proceeds \200 million, down \100 million.

The original article was published on November 2, 2010 and was translated by Kiyo Hayasaka

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