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Benesse Revises 1H Fiscal 2008 Earnings Forecasts
Release Date : 2008/10/17
Benesse Corporation has revised its consolidated and non-consolidated earnings forecasts for the first half of fiscal 2008 (April 1, 2008 to September 30, 2008) announced on April 30, 2008, as follows, in light of recent business performance.
Consolidated projection for the first half of FY2008
|
Net Sales |
Operating |
Ordinary |
Net |
Net | |
|
Million yen |
Million yen |
Million yen |
Million yen |
Yen | |
|
Projection announced on |
203,200 |
25,100 |
25,400 |
14,300 |
140.41 |
| Revised Projection (B) |
208,100 |
30,600 |
30,700 |
9,300 |
92.56 |
| Difference (B-A) |
4,900 |
5,500 |
5,300 |
(5,000) |
――― |
| Difference (%) |
2.4 |
21.9 |
20.9 |
(35.0) |
――― |
| Reference:Results for the 1H of FY2007 |
187,691 |
26,492 |
27,342 |
14,863 |
145.34 |
Non-consolidated projection for the first half of FY2008
|
Net Sales |
Operating |
Ordinary |
Net |
Net | |
|
Million yen |
Million yen |
Million yen |
Million yen |
Yen | |
| Projection announced on April 30 (A) |
119,300 |
21,600 |
22,800 |
15,500 |
152.19 |
| Revised Projection (B) |
121,900 |
25,900 |
26,700 |
11,000 |
109.49 |
| Difference (B-A) |
2,600 |
4,300 |
3,900 |
(4,500) |
――― |
| Difference (%) |
2.2 |
19.9 |
17.1 |
(29.0) |
――― |
| Reference:Results for the 1H of FY2007 |
111,402 |
21,316 |
22,955 |
12,794 |
125.10 |
Reasons for Revisions
(1) Consolidated
Benesse is now forecasting higher-than-planned net sales, operating income and ordinary income due to a number of factors. These include slightly better-than-expected enrollment in its core correspondence course business; a strong performance in the language business, centered on Europe, at consolidated subsidiary Berlitz International, Inc.; and the effect of shifting some costs of sales and selling, general and administrative expenses, both mainly at Benesse Corporation, to the second half of fiscal 2008. However, Benesse no longer expects to achieve its initial net income forecast for the first half due to the booking of an approximate 7.6 billion yen goodwill amortization charge under special losses related to the share value impairment of its shareholding in consolidated subsidiary Tokyo Individualized Educational Institute, Inc. (stock code: 4745; 1stSection, Tokyo Stock Exchange). This charge is pursuant to paragraph 32 of the Practical Guidelines on Procedures for Consolidating Equity in the Consolidated Financial Statements issued by the Japanese Institute of Certified Public Accountants (JICPA) in Accounting Committee Report No. 7.
(2) Non-consolidated
Benesse is now forecasting higher-than-planned net sales, operating income and ordinary income due to a number of factors. These include slightly better-than-expected enrollment in its core correspondence course business and the effect of shifting some costs of sales and selling, general and administrative expenses to the second half of fiscal 2008. However, Benesse no longer expects to achieve its net income forecast for the first half due to the booking of an approximate 7.6 billion yen loss on devaluation of subsidiaries and affiliates under special losses in accordance with Practical Guidelines for Accounting for Financial Instruments issued by JICPA. This reflects a sharp decline in the market value of Benesse’s shareholding (carrying value of 12.9 billion yen) in consolidated subsidiary Tokyo Individualized Educational Institute, Inc. (stock code: 4745; 1stSection, Tokyo Stock Exchange).
Benesse is currently looking at revising its previously announced consolidated and non-consolidated full-year forecasts for fiscal 2008 and plans to make a further announcement when it releases its first half results on October 30, 2008.
Note:
Earnings forecasts are based on information currently available to management and on certain assumptions considered reasonable. Actual results could differ substantially from forecasts due to a variety of factors.