IR News｜Results

 Benesse Corporation today announced that its board of directors had finalized the inclusion of an extraordinary $100 million (13.3 billion yen) loss* in its results for the fiscal year 2001 ended March 31, 2002, resulting from the impairment of the goodwill* of Berlitz International Inc., a wholly owned subsidiary of Benesse. The calculation of goodwill impairment was necessitated by the Financial Accounting Standards Board's (FASB) adoption of a new accounting rule, which replaces the amortization of goodwill with the new impairment-only approach.
As a consequence, Benesse lowered its projected financial results on a consolidated and non-consolidated basis for fiscal 2001 as follows.


FY2001 Projections
[Revised Projection]
Net Sales
267,250million yen
Ordinary Income
26,300million yen
Net Income
300million yen

[Projection made on November 16, 2001]
Net Sales
268,260million yen
Ordinary Income
24,660million yen
Net Income
13,360million yen

Non-consolidated
[Revised Projection]
Net Sales
184,550million yen
Ordinary Income
25,000million yen
Net Income
800million yen

[Projection made on November 16, 2001]
Net Sales
185,500millon yen
Ordinary Income
24,300million yen
Net Income
13,200million yen

* The calculation of the goodwill impairment takes into account Berlitz's growth rate by segment, its operational risks and financial results, as well as the gap between the $16.50 per-share price of the July 2001 tender offer, by which Berlitz became a wholly owned subsidiary of Benesse, and actual share price of $31.97, as of Benesse's takeover of Berlitz in February 1993.