kuraray


News Releases 2002

Announcement Regarding Revision of Business Performance Forecasts and Factors behind Extraordinary Loss to be Posted for Fiscal 2001

February 8, 2002
Kuraray Co.,Ltd.

Hereunder, we present a revision of the business performance forecasts for the full term ending March 31, 2002, published at the time of the announcement of the Company's interim-term accounts settlement on November 15, 2001, together with details of the factors that lie behind the projected posting of an extraordinary loss for the term.

1. Revised forecasts of consolidated business performance for the term ending March 31, 2002.

  Net sales Operating income Ordinary income Net income
Previous forecast (A)
(Published Nov. 15, 2001)
315,000 18,000 17,500 6,000
Revised forecast (B) 305,000 18,000 17,500 3,000
Change (B-A) (10,000) - - (3,000)
Percentage change (3.2) - - (50.0)
Figure for previous term
(to March 31, 2001)
313,650 19,931 22,757 4,044

(million of yen; %)

2. Revised forecasts of non-consolidated business performance for the term ending March 31, 2002.

  Net sales Operating income Ordinary income Net income
Previous forecast (A)
(Published Nov. 15, 2001)
225,000 11,500 13,000 4,500
Revised forecast (B) 220,000 10,500 13,000 500
Change (B-A) (5,000) (1,000) - (4,000)
Percentage change (2.2) (8.7) - (88.9)
Figure for previous term
(to March 31, 2001)
241,670 14,535 19,538 4,565

(million of yen; %)

3. Principal Reasons for Posting of Extraordinary Loss

Against the background of the across-the-board stagnation of stock prices on the Tokyo Stock Exchange, the Company has decided to implement impairment accounting at the end of the current business term with respect to certain shares, including those of Mizuho Holdings, Inc., which we hold, in view of the fact that the price of these shares has fallen steeply and there is, effectively, no prospect of recovery. As a consequence of this action, the Company will register an extraordinary loss on valuation of investment securities in the amount of approximately ¥7,000 million. As a result, net income for the term will decline as compared with the previous announcement, by ¥4,000 million to ¥500 million on a non-consolidated basis and by ¥3,000 million to ¥3,000 million on a consolidated basis. Furthermore, the implementation of this impairment accounting is expected to cause a decline in shareholders' equity, on both a consolidated and non-consolidated basis, of ¥1,500 million as compared with the end of September 2001.