Announcement of Revisions to Consolidated Results Forecasts, Reversal of Deferred Tax Assets, and Recording of Other Losses
Taking into account recent business conditions, Mabuchi Motor Co., Ltd. hereby announces that it has revised its consolidated results forecasts for the fiscal year ending December 31, 2011, announced on August 8, 2011.
The Company also hereby announces the reversal of deferred tax assets and the recording of other losses.
1. Revisions to Forecasts
Fiscal Year Ending December 31, 2011 (January 1, 2011 — December 31, 2011)
| Net Sales | Operating Income | Ordinary Income | Net Income | Net Income Per Share (Yen) |
|
|---|---|---|---|---|---|
| Previous Forecast (A) | 82,500 | 3,500 | 5,000 | 3,300 | 94.19 |
| Revised Forecast (B) | 78,000 | 2,700 | 3,900 | (1,100) | (31.40) |
| Amount Change (B-A) | -4,500 | -800 | -1,100 | -4,400 | - |
| Percentage Change (%) | -5.5 | -22.9 | -22.0 | - | - |
| Reference: Actual Result for Fiscal Year Ended December 31, 2010 | 82,752 | 6,624 | 7,587 | 5,260 | 150.14 |
2. Reasons for Revision of Consolidated Results Forecasts
(1) Reasons for the revision
We have lowered our forecast for consolidated net sales for the fiscal year ending December 31, 2011, by 5.5% from our previous forecast, to ¥78,000 million. In addition to the yen’s appreciation relative to our exchange rate assumption, this reflects weakness in the audio & visual equipment and optical & precision instruments markets ahead of the year-end shopping season, sluggish demand in Europe related to electrical and electronic parts, and the effect of the recent flooding in Thailand.
Taking into account this lower sales forecast, we have accordingly revised our forecasts for operating income to ¥2,700 million (a 22.9% reduction to our previous forecast) and for ordinary income to ¥3.9 billion (a 22.0% reduction). With the reversal of deferred tax assets and the booking of other losses, we have also revised our forecast for net income to a net loss of ¥1,100 million.
(2) Reversal of deferred tax assets
In light of the lowering of our results forecasts and after carefully considering the recoverability of deferred tax assets in the fiscal year ending December 31, 2011, we have reversed deferred tax assets in the amount of ¥1,769 million and recorded this amount under income taxes – deferred.
(3) Emergence of other losses and details of losses
With the conclusion of liquidation proceedings at a consolidated subsidiary in Malaysia, a foreign currency translation adjustment for the fiscal year ending December 31, 2011, has been reversed, and a loss from the reversal of foreign currency translation adjustments has been recorded in the amount of ¥1,509 million. This reversal will have no effect on the amount of net assets shown in the consolidated balance sheets or on consolidated cash flows.
In addition, other losses of ¥200 million have been recorded, representing retirement allowances expected to emerge at the consolidated subsidiary.
Our annual dividend forecast for the fiscal year ending December 31, 2011, remains unchanged at ¥100 per share as originally projected.
Note: The above forecasts are based on the information currently available. Actual results are subject to change because of a variety of factors.
Contact: Hiroo Okoshi, Director, Director and General Manager of Administration Headquarters (Tel: +81-47-710-1127)
