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Kyokuyo's Estimated Quake Damage Amounts to \622M

April 18, 2011

With an extraordinary loss incurred by the Great East Japan Earthquake, Kyokuyo announced on April 15 a downswing of its business trajectory for the fiscal year ended March 2011.

Sales volume was revised upward to \163 billion from \160 billion. Yet, operating profit and ordinary earnings had to head downward, from \2.3 billion to \1.6 billion and from \ 2.2 billion to \1.8 billion respectively. Net income was altered to \200 million from the original projection of \900 million.

As a single entity, sales were changed to \148 billion from \143 billion. Operating earnings remained unchanged at \2.1 billion. Ordinary profit however was increased from \2.1 billion to \2.2 billion. Net profit was modified downwards to \700 million from \900 million.

The Marine Products Purchasing segment performed aggressive sales efforts for various fish varieties, manufacturing materials, and value-added products. On top of that, a newly joined consolidated subsidiary played a contributing role to sales growth. Conversely, chilled transportation operations in the segment of Logistics suffered unfalteringly low market rates. In addition, far seas purse seining operations in the Tuna segment experienced lower-than-expected bonito prices. All these factors resulted in consolidated operating profit and ordinary earnings falling short of original projections.

\443 million as a single entity and \622 million as a group will be reported as disaster losses resulted from the Great East Japan Earthquake. The revisions to the performance projections will not affect a year-end dividend, staying at \5 per share.

The quake engendered damage to the Shiogama Research and Kyokuyo Foods main office plant Center in Shiogama City, Miyagi; the Hachinohe Plant in Hachinohe City, Aomori; and the Hitachinaka Plant in Hitachinaka City, Ibaragi. For repairing the defaced building structures and equipment, estimated amounts of \80 million as a single entity and \137 million as a group will be reported as losses on fixed asset disposal and as repair costs.

Furthermore, plants belonging to Kyokuyo Foods, other contract factories…..the estimated damage amount to \358 million as a single entity and \479 million as a group.

As a relief fund to victims and disaster areas, \5 million will be donated each by Kyokuyo and the Kyokuyo Group.

The original article was published on April 18, 2011 and was translated by Kiyo Hayasaka

60% of Large Saury Ships Sustain Damage

April 6, 2011

The Japan Saury Association said that 43 out of 60 large scale saury vessels sustained damage due to the 2011 Tohoku earthquake and tsunami. If all of the mangled vessels are found inoperable, 120,000 tons of saury will not be landed.

The Association urgently attempts to figure out how many will be salvageable.

The majority of saury ships were docked at the time of the quake for repair or just moorage at Kesennuma and Onahama, since it was an off-season.

The overall damage had been unknown. However the Association could finally arrive at Kesennnuma and learned about the destruction. Including small boats, the total number of damaged ships ran up to 57, out of which 40 ships were large ones.

The original article was published on April 6, 2011 and was translated by Kiyo Hayasaka

Seven Tsukiji Wholesalers' Transaction Amounts for March

April 5, 2011

The total transaction amount of seven Tsukiji wholesalers for the month of March tallied up to 41,629 tons, down 12.2 percent from the corresponding month a year ago. Though the unit price showed a slight upswing, up 0.5 percent, the total value dipped 11.8 percent to \31.6 billion.

The original article was published on April 5, 2011 and was translated by Kiyo Hayasaka

Kyokuyo Group: Kamaishi Research Center Partially Opens

April 1, 2011

Kyokuyo announced the impact of the 2011 Tohoku earthquake and tsunami on its group companies and the outlook of future recovery efforts on March 31. Despite destruction of research and inspection devices inside the building of the Kamaishi Research Center, located in Kamaishi City, Miyagi Prefecture, the research center overhauled the damaged equipment, and partially resumed its operations on March 28. Delayed recovery of distribution infrastructures of the disaster areas will require more time before the research center's whole operations recommence.

The Kyokuyo Foods Main Office Plant likewise sustained damage to its production equipment and the building structure itself. After inspection and maintenance of the equipment, a test run was performed on March 28. In line with the restitution of distribution infrastructures, the plant will restart production as it becomes possible.

The Kyokuyo Foods Hachinohe Plant in Hachinohe City, Aomori Prefecture, was inundated by tsunami water. Even though the inside of the plant has been rehabilitated, inspecting and overhauling production equipment and an electrical system are currently under way. It is believed that it will take a longer period of time before the plant can resume its work. The Kyokuyo Foods Hitachinaka Plant in HItachinaka City, Ibaragi Prefecture, suffered partial damage to its building structure; however, an operation room on the first floor was restored to an operable state and a test run was conducted on March 28.

The original article was published on April 1, 2011 and was translated by Kiyo Hayasaka

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