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 The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts.
A type of proceeding pursuant to federal Bankruptcy of a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. engaging in golf course and other development projects in Ueno, Mie Ueno (上野市 Ueno-shi) 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 foodstuffs npl → comestibles mpl
foodstuffs npl → denrées fpl alimentaires
foodstuffs food npl → .
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 Securitization
The process of creating a financial instrument by combining other financial assets and then marketing them to investors.
Mortgage backed securities are a perfect example of securitization.
May also be spelled as "securitisation. , 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.