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Morinaga forecasts interim net loss of 9.2 bil. yen.

TOKYO, Sept. 21 Kyodo

Morinaga and Co. said Tuesday it expects to post an unconsolidated net loss of 9.2 billion yen in the April-September first half of fiscal 1999, compared with a loss of 650 million yen it projected in May.

The leading confectioner revised the projection as it will register an extraordinary loss of around 19 billion yen for the Sept. 30 liquidation of a wholly owned subsidiary engaging in golf course and other development projects in Ueno, Mie Prefecture.

On a pretax basis, however, Morinaga expects a profit of 3.8 billion yen, up from 250 million yen in the May forecast, thanks to strong sales of confectionery and other foodstuffs.

Overall sales will be 74.4 billion yen, rather than the 71.9 billion yen initially forecast, the company said.

To cover the extraordinary loss, which will stem from latent losses on the subsidiary's land holdings, Morinaga plans to raise some 20 billion yen by selling its Tokyo head office building and land by the end of fiscal 1999.

While the company plans to sell the real estate by means of securitization, negotiations with parties concerned have yet to be wrapped up.

For fiscal 1999, Morinaga expects a pretax profit of 6.8 billion yen and a net profit of 2 billion yen on sales of 152 billion yen.

Corresponding figures in the May forecast were 4 billion, 1.5 billion and 148.5 billion yen.
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Comment:Morinaga forecasts interim net loss of 9.2 bil. yen.
Publication:Japan Weekly Monitor
Geographic Code:9JAPA
Date:Sep 27, 1999
Words:240
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