Company name: Ube Industries, Ltd. Representative: Yuzuru Yamamoto
President and Representative Director Security code: 4208 (shares listed on First Section of Tokyo
Stock Exchange and Fukuoka Stock Exchange)
Contact: Shinsuke Tokumitsu
General Manager, IR/PR Department Tel: +81-3-5419-6110
Ube Industries Announces Recording of Impairment Loss and Revised Earnings ForecastsTOKYO, April 28, 2016 - Ube Industries, Ltd. today announced that it will record an impairment loss (extraordinary loss) for the polyimide business and other businesses in its consolidated results for fiscal 2015, the fiscal year ended March 31, 2016. In conjunction with this, Ube Industries has revised its earnings forecasts for fiscal 2015, previously announced on October 15, 2015, based on recent earnings trends. The changes are described below.
-
Recording of Impairment Loss (Extraordinary Loss)
The Company will record a total impairment loss of ¥8,711 million in the fourth quarter as an extraordinary loss. This includes an impairment loss of ¥5,861 million relating to fixed assets in the polyimide business, due to the continued slump in its profitability in recent years and the outlook for earnings. The total impairment loss recorded by the Company will also include an impairment loss at AET Electrolyte Technologies (Zhangjiagang) Co., Ltd., which is a consolidated subsidiary of the Company in China.
- Revised Earnings Forecast
Revised Earnings Forecast for the Full Year of the Fiscal Year ended March 31, 2016 (April 1, 2015 to March 31, 2016)
(In millions of yen except where noted)
Net Sales
Operating Income
Ordinary Income
Net Income Attributable to Owners of the Parent
Net Income per Share (Yen)
Previous forecast (A)
(Announced on October 15, 2015)
670,000
39,000
38,500
21,000
19.85
Revised forecast (B)
641,700
41,400
39,600
19,100
18.05
Change (B-A)
−28,300
+2,400
+1,100
−1,900
Percent change
−4.2
+6.2
+2.9
−9.0
Previous fiscal year (ended March 2015)
641,759
24,147
23,228
14,649
13.85
Reasons for the Revision
Due in part to the decline in the price of raw fuels such as coal and crude oil, net sales will underperform the previous forecast, while operating income will exceed the previous forecast. There have been transfers between non-operating income and extraordinary income/loss in ordinary income, which are expected to exceed the previous forecast.
Meanwhile, net income attributable to owners of the parent is expected to be lower than the previous forecast, which is partly due to the recording of the impairment loss in described in section 1 above.
The dividend forecast of ¥5 per share is unchanged.
Note: The above earnings forecasts are based on certain assumptions judged to be reasonable by the Company when preparing this document. Actual results can vary significantly from forecasts, due to changes in a wide variety of conditions.
Ube Industries Ltd. issued this content on 28 April 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 April 2016 06:10:33 UTC
Original Document: http://www.ube-ind.co.jp/english/news/2016/20160428_01.pdf