| Revision of Forecast for FY2002 Business Results and FY2003
Forecast |
 |
[I] Revision of forecast for FY2002 business results
| 1. |
We have revised our forecast for business results of the fiscal year 2002
(from January 1, 2002 to December 31, 2002) as mentioned below, the previous forecast
of which was announced on August 26, 2002. |
|
| (1) Revision of FY2002 business results (consolidated basis) |
| |
| |
Unit |
Sales |
Ordinary Income |
Net Income |
| Previous forecast (A) |
 million |
19,700 |
200 |
-400 |
| Revised forecast (B) |
million |
18,700 |
0 |
-3,900 |
| Difference (B-A) |
million |
-1,000 |
-200 |
-3,500 |
| Increase/-Decrease |
% |
-5.1 |
- |
-875.0 |
Results of the previous
period (FY2001) |
million |
20,757 |
751 |
-26 |
|
|
|
|
| (2) Revision of FY2002 business results (unconsolidated
basis) |
| |
| |
Unit |
Sales |
Ordinary Income |
Net Income |
| Previous forecast (A) |
million |
18,000 |
200 |
-300 |
| Revised forecast (B) |
million |
17,100 |
0 |
-3,880 |
| Difference (B-A) |
million |
-900 |
-200 |
-3,580 |
| Increase/-Decrease |
% |
-5.0 |
- |
-1193.3 |
Results of the previous
period (FY2001) |
million |
18,919 |
607 |
-119 |
|
|
|
|
| (3) Reasons for the revisions |
|
a) Sales |
|
The sales will decrease from the previous forecast due to the
decreased sales of fine carbon products affected by the declined demand under
the depressed economy and the decrease in selling prices of artificial graphite
electrodes. |
|
b) Ordinary Income |
|
Though we made every effort to reduce our production costs, our
ordinary income will decrease from the previous forecast because it was difficult
to stop the descent of selling prices so that our income was affected by the decreased
sales. |
|
c) Net Income |
|
Our net income will considerably decrease from the previous forecast
because we will, in order to strengthen our operating basis, reckon in extraordinary
expense, including the legal litigation expenses(1,653
million) relating to the price-fixing cartel of graphite electrodes, the retirement
of unused fixed assets(918
million) relating to the integration of specialty carbon business, the disposal
of long-term inventories(278
million), the write-down on investment securities(454
million), the provision for retirement allowance for directors(194
million) and so on.
Regarding tax effect accounting, we will reverse a whole amount of differed tax
assets because considerable amount of loss is expected in FY2002. |
|
| [II] Forecast for FY2003 |
| As to the next fiscal year, we will reverse the legal reserves after an approval
at the general meeting of shareholders to fill up the loss and make efficient
and flexible use of the capital reserve in accordance with the commercial code
of Japan, and in order to ensure our profit we will buckle to work as mentioned
below |
(1) Forecast for FY2003 business results (in million)
|
|
| |
| |
Sales |
Ordinary Income |
Net Income |
| Consolidated |
21,000 |
700 |
500 |
| Unconsolidated |
15,000 |
300 |
500 |
|
|
|
|
Note: |
With the business integration as of January 1, 2003, specialty
carbon products business has been integrated in Nippon Techno-Carbon Co., Ltd.
Therefore, the business results of concerned products are excluded from our unconsolidated
results and the figures of consolidated business results include those of Nippon
Techno-Carbon Co., Ltd. |
|
| (2) Major implementation |
|
a) |
Development of new application for the high-value-added products,
NICALON (silicon carbide continuous fiber) and GF (carbon fiber and graphite fibers) |
| |
b) |
Reduction of total personnel expense |
|
- Enlarged reduction of remuneration for directors and salary
cut for employees
- Reduction by 10% of number of employees |
|
c) |
Improvement of selling price of graphite electrodes |
| |
d) |
Cost reduction of specialty graphite products by the business
integration |
| |
e) |
Reduction by 20% of interest-bearing debts |
|
(3) Dividend
We aim at resumption of dividends by implementing the abovementioned measures. |
(4) Purchase of our own shares
It is scheduled to purchase our own shares after taking necessary procedures. |
