TOKYO - JFE
Holdings, Inc. today announced its revised
forecasts for interim and full-year consolidated
results in the fiscal year ending March 31,
2005, the third reporting term since the company
was formed in September 2002. The revised
forecasts reflect accounting standards for
the impairment of fixed assets that the company
has decided to adopt in the interim period,
ahead of government-mandated implementation.
This announcement also constitutes disclosure
of the quarterly results summary as required
in the timely disclosure regulations of the
Tokyo Stock Exchange.
Results Forecasts and Impact of Application
of Impairment Accounting
spending increased and consumer spending grew
modestly in the first half of the fiscal year,
leading to a solid recovery in business conditions
in the Japanese economy. Within this context,
the JFE Group moved steadily forward with
the implementation of its First Medium-Term
Business Plan and efforts to increase earnings.
forecasts interim consolidated net sales of
1,250.0 billion yen and ordinary income of
170.0 billion yen, both higher than the previous
forecasts announced in May. Net sales and
income forecasts for the steel business have
been raised due to increases in sales prices
for steel products as a result of strong demand
worldwide. In the engineering business, net
sales and operating income are unchanged from
the previous forecast. In the urban development
and LSI businesses, net sales and income forecasts
both have been lowered slightly due to declining
of impairment accounting will result in a
special impairment loss in the interim period,
forecast at 80.0 billion yen, which was not
included in the previous forecast. As a result
of the accounting change, interim net income
is forecast at 10.0 billion yen, down from
the previous forecast.
For the full
year, however, the company now forecasts net
sales of 2,740.0 billion yen and ordinary
income of 400.0 billion yen, both of which
exceed previous forecasts. The increase reflects
expectations of sustained recovery in business
conditions and salutary effects on earnings
from improvements in sales prices for steel.
Although the application of impairment accounting
will have a negative impact on extraordinary
profit/loss, net income for the year is forecast
at 120.0 billion yen, slightly higher than
the previous forecast.
In a meeting
held today, the board of directors of JFE
Holdings announced it would not pay an interim
dividend this year.
forecasts in this document are based upon
management's assumptions and beliefs in the
light of information available at the date
of publication. Actual results may differ
materially from these forecasts.