Sanix Revises Full-Year Financial Results and Dividend Forecasts.
1. Details of revision to financial results
1) Revision to full-year consolidated results forecast
(April 1, 2005 to March 31, 2006) (Millions of yen) Net Sales Recurring Profit Net Income Previous Forecast 41,098 (640) (1,452) (as of November 16, 2005) Revised Forecast 36,500 (3,480) (4,260) Difference (4,598) (2,840) (2,808) % Change (11.2) - - Results from year before 44,083 73 (10,010)
2) Revision to full-year non-consolidated results forecast
(April 1, 2005 to March 31, 2006) (Millions of yen) Net Sales Recurring Profit Net Income Previous Forecast 39,360 (760) (1,530) (as of November 16, 2005) Revised Forecast 35,040 (3,590) (4,320) Difference (4,320) (2,830) (2,790) % Change (11.0) - - Results from year before 42,008 (70) (10,099)
3) Reasons for the downward revision:
During the financial year ended March 31, 2006, fraudulent acts by dishonest housing improvement operators became a serious social issue, having a negative effect on the entire environmental sanitation industry, and discouraging consumers' trust of door-to-door sales. Under the circumstances, the HS division made an effort to improve business performance by emphasizing compliance with applicable laws and regulations to ensure the protection of consumers.
However, following the third quarter, HS divisional sales during the fourth quarter are expected to be significantly less than the previous forecast, which was announced in the Company's interim financial report. In the ERD division, after Tomakomai power plant had a fire in August, the power plant began operating again in December. Though stable operations at the plant are ensured, the Company is expecting a decline in revenues from electric power sales compared to the previous forecast as calorific value of plastic fuel was lower than expected. As a result, Sanix is obliged to revise our previous forecast of its consolidated sales for the full year ended March 31, 2006.
Regarding profit/loss, the Company is expecting more recurring loss than the prior forecast due to a decline in revenues in the HS division where the marginal profit ratio is high. Consequently, the Company expects more net loss than the previous forecast. As a result, Sanix is obliged to modify the previous forecast of consolidated recurring profit/loss and consolidated net profit/loss for the full year ended March 31, 2006. For the same reason above, the Company has also modified its forecast of non-consolidated sales, recurring profit/loss and net profit/loss for the full year ended March 31, 2006.
2. Details of revision to year-end dividend per share forecast
1) Reasons for the revision:
The Company places returning profits to shareholders as the most important issue in our management policy. However, considering expected net loss in our non-consolidated operating results, we are sorry to inform shareholders that we now plan non payment of year-end dividends, for which we will make a full effort to enable an early resumption of dividends, and we sincerely hope to have the understanding of shareholders and interested parties of the Company.
2) Revision to year-end dividend per share forecast
(April 1, 2005 to March 31, 2006) Interim Interim Full Year Forecast as of November 16, 2005 0.00 yen 10.00 yen 10.00 yen Revised Forecast 0.00 yen 0.00 yen 0.00 yen Previous Year 0.00 yen 10.00 yen 10.00 yen
Note: These forecasts are based on information available as of April 21, 2006. Actual results may be different from forecasts due to various unexpected factors in the future.
About Sanix Incorporated
Sanix (TSE: 4651) is Japan's leading provider of sanitation and environmental services. The company's business is divided into three areas; Home Sanitation, and Establishment Sanitation, which provides pest control and sanitation maintenance and protection services for offices and public facilities. The Environmental Resources Development Division provides industrial waste management solutions and recycling services. This division positions Sanix as a leading provider of environmental services to society, which is becoming increasingly concerned about the health of the environment. Sanix's long experience in industrial waste management means the company is poised to take the lead in this new field.
Source: Sanix Incorporated
Kozo Inoue Managing Director Sanix Incorporated mailto:firstname.lastname@example.org
Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K.
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|Date:||Apr 21, 2006|
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