kuraray


News Releases

Revised estimates of business performance for fiscal 2002,
and explanation of extraordinary losses expected
to be registered

Apr. 1, 2003
Kuraray Co., Ltd.

Kuraray Co., Ltd. herewith announces revisions to its latest estimates of business performance for fiscal 2002 -- the term just ended on March 31, 2003 -- as well as an explanation of extraordinary losses expected to be registered for the term. The latest estimates were made on November 12, 2002 at the time of announcement of interim business results for the six months ended September 30, 2002.

1. Revised estimates of business performance on a consolidated basis for the fiscal year ended March 31, 2003

  Net sales Operating income Ordinary income Net income
Previous estimate (A)
(as of Nov. 12, 2002)
330,000 24,500 22,000 10,000
Revised estimate (B) 330,000 24,500 22,000 7,000
Difference (B-A) 0 0 0 (3,000)
Percentage change -- -- -- (30.0%)
Results for previous term (FY2001) 305,861 18,957 18,823 2,866

(¥ million; %)

2. Revised estimates of business performance on a non-consolidated basis for the fiscal year ended March 31, 2003

  Net sales Operating income Ordinary income Net income
Previous estimate (A)
(as of Nov. 12, 2002)
200,000 12,500 13,500 6,000
Revised estimate (B) 200,000 12,500 13,500 3,500
Difference (B-A) 0 0 0 (2,500)
Percentage change -- -- -- (41.7%)
Results for previous term (FY2001) 220,983 11,055 14,426 1,670

(¥ million; %)

3. Reasons for revisions of performance estimates, and explanation of expected registration of extraordinary losses

(1) Reasons for revisions
The downward revisions in estimates of net income, on both a consolidated and non-consolidated basis, are due to the posting at term-end of impairment losses on shares of financial institutions held by the Company. As a consequence of this, an appraisal loss on share holdings of approximately ¥4,100 million is expected to be registered in both the consolidated and non-consolidated accounts, and this will be posted as an extraordinary loss.
As a result, net income is now projected to register a decline compared with the previously announced estimates, in the amounts of ¥3,500 million on a non-consolidated basis and ¥7,000 million on a consolidated basis.
(2) Explanation of projected extraordinary loss
Including the appraisal loss mentioned in paragraph (1) above, a loss on write-down of investment securities of ¥5,000 million on both a consolidated and non-consolidated basis (of which approximately ¥900 million had been recorded at the interim accounts settlement for the six-month period ended September 30, 2002) will be registered as an extraordinary loss.
In addition, under the category of extraordinary losses resulting from corporate restructuring involving the split-off as an independent company of our polyester staple production plant at Tamashima in Okayama Prefecture, we will register extraordinary losses on a non-consolidated basis of approximately ¥3,700 million (of which approximately ¥1,800 million had been recorded at the interim accounts settlement) and on a consolidated basis of approximately ¥4,100 million (of which approximately ¥2,200 million had been recorded at the interim accounts settlement).
Of the factors described above, the restructuring charges and the losses on write-down of investment securities (excluding the impairment loss described in (1) above, which occurred subsequent to the date of announcement of the previous estimates) were taken into account in the said estimates.