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Summary of Interim Period Earnings and Revision of Consolidated
Performance Forecast for the Fiscal Year Ending March 31, 2011 |
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I. Summary of Earnings for the Interim Period of the Fiscal Year Ending March 31, 2011 Sales and Profits up Year-on-Year ・Operating Income 41.7 billion yen (a 26% increase from previous interim period) ・Net Income 17.6 billion yen (a decrease of 4.0 billion yen from the previous interim period) Interim dividend of 8 yen per share, full-year dividend of 16 yen per share planned November 4, 2010 - Ajinomoto Co., Inc. (Ajinomoto; President & CEO: Masatoshi Ito; Headquarters: Tokyo, Japan) today announced its consolidated financial results for the interim period of the fiscal year ending March 31, 2011, as outlined in the tables below. Compared with the previous interim period, net sales increased 5% to 615.8 billion yen, operating income increased 26% to 41.7 billion yen, ordinary income increased 16% to 42.1 billion yen and net income decreased 19% to 17.6 billion yen. 
In the domestic food products business, sales of HON-DASHI and umami seasoning AJI-NO-MOTO decreased slightly compared with the same period a year earlier. Sales of low-calorie sweeteners for the household and restaurant markets increased slightly. Sales of amino acid supplement amino VITAL increased substantially as sales of granulated products expanded. In frozen foods, sales of household-use products were near the level of the same period a year earlier, as sales of core product Gyoza (Chinese dumplings) grew favorably. Domestic sales of beverages were also essentially unchanged, partly due to the effect of an exceptionally hot summer, despite the removal of beverage gift sets from the beverage category. In the overseas food products business, sales in Asia increased as strong sales of AJI-NO-MOTO and flavor seasonings for household use continued. Instant noodle sales grew substantially, and sales of beverages including Birdy canned coffee also grew favorably. In America, sales increased, driven by favorable growth in sales of flavor seasonings for household use in South America. In Europe and Africa, sales fell considerably due to a decline in sales of AJI-NO-MOTO for household use in West African countries as well as the negative impact of foreign exchange rates. In umami seasonings for processed food manufacturers, sales of AJI-NO-MOTO for the food processing industry grew favorably, supported by firm demand despite the negative impact of foreign exchange rates. Sales of nucleotides were flat due in part to the negative effect of foreign exchange rates. Sales of bioscience products and fine chemicals grew favorably overall owing to considerable increases in sales prices of feed-use amino acids Lysine and Threonine. Sales of amino acids for pharmaceuticals and foods were basically unchanged. Sales of aspartame, a sweetener, for the processing industry grew substantially. Sales of pharmaceutical fine chemicals declined slightly. In specialty chemicals, sales of the amino acid-based cosmetics Jino grew steadily, and sales of insulation film for build-up in printed wiring boards grew significantly. Pharmaceutical sales increased slightly overall. Sales of self-distributed products were down slightly, but sales of products sold through business tie-ups increased substantially. II. Revisions to Consolidated Forecast for the Fiscal Year Ending March 31, 2011 In view of recent performance trends and other factors, Ajinomoto has revised its performance forecast for the fiscal year ending March 31, 2011, as outlined in the table below. The revised forecast replaces the forecast announced on May 10, 2010. 1. Revisions to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2011 (April 1, 2010 - March 31, 2011) 
2. Reasons for the Revision In the overseas food products business, in the seasonings category, sales of AJI-NO-MOTO for household and restaurant use and flavor seasonings for household use have been strong in Asia. In umami seasonings for processed food manufacturers, sales of nucleotides have been stronger than projected. As a result operating income is expected to be higher than forecast. In the bioscience products and fine chemicals business, operating income is also expected to exceed the forecast on favorable sales of insulation film for build-up in printed wiring boards. In the pharmaceuticals business, operating income is expected to be higher than forecast due to factors including better-than-projected sales of products sold through business tie-ups. In the domestic food products business, operating income is expected to be in line with the previous forecast. As a result, for overall consolidated performance for the fiscal year ending March 31, 2011, Ajinomoto projects that while net sales will be lower than in the previous forecast due to the effect of foreign exchange rates, operating income and ordinary income will be higher. Despite the increase in operating income, loss on devaluation of securities is expected to limit net income to a small increase over the previous forecast. This forecast assumes an exchange rate of 86.0 yen to 1 U.S. dollar. There is no change to the dividend forecast announced on May 10, 2010.
About Ajinomoto Ajinomoto is a global manufacturer of high-quality consumer foods and other products incorporating unique technologies. Founded in 1909 and now operating in 122 countries and regions, the company offers lines of seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. With FY2009 net sales of US$12.8 billion, Ajinomoto is renowned for its innovative contributions to food culture and human health. For more about Ajinomoto (TYO:2802), visit www.ajinomoto.com. For further information, please contact: Ajinomoto Co., Inc. Public Communications Department; pr_info@ajinomoto.com |
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