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Summary of Interim Period Earnings
- Record Operating and Net Income - and Revisions to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2012 |
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I. Summary of Earnings for the Interim Period of the Fiscal Year Ending March 31, 2012
November 4, 2011 - Ajinomoto Co., Inc. (Ajinomoto Co.) today announced its consolidated financial results for the interim period of the fiscal year ending March 31, 2012, as outlined in the tables below. Compared with the previous interim period, net sales decreased 2% to 604.1 billion yen, operating income increased 2% to 42.5 billion yen, ordinary income increased 4% to 44.1 billion yen and net income increased 45% to 25.7 billion yen.  In the food industry, the challenging environment continued as ingredient prices rose amid mild deflation in the market. In these conditions, net sales for the interim period ended September 30, 2011 decreased 2%, or 11.6 billion yen, compared with the previous interim period to 604.1 billion yen. Operating income increased 2%, or 0.8 billion yen, to 42.5 billion yen, ordinary income increased 4%, or 1.9 billion yen, to 44.1 billion yen, and net income increased 45%, or 8.0 billion yen, to 25.7 billion yen. In the domestic food products business, sales decreased 2%, or 3.1 billion yen, to 221.5 billion yen partly due to the effects of the Great East Japan Earthquake, and operating income increased 25%, or 3.7 billion yen, to 18.3 billion yen due to a decrease in selling, general and administrative expenses and other factors. Sales of frozen food products for household use were solid as demand was boosted by the increased tendency for people to eat at home following the earthquake. In the overseas food products business, sales decreased 1%, or 0.3 billion yen, to 114.9 billion yen, due in part to the effect of exchange rates. Operating income decreased 24%, or 3.5 billion yen, to 11.5 billion yen, due to factors including exchange rates and higher raw material prices. In seasonings, sales of umami seasoning AJI-NO-MOTO and flavor seasonings for household use were favorable in Asia, and in South America, sales of flavor seasonings for household use expanded steadily. In addition, sales of AJI-NO-MOTO for household use were up substantially in West Africa. In umami seasonings for processed food manufacturers, sales volume and sales of AJI-NO-MOTO and nucleotides declined in Japan due to the impact of the earthquake. Overseas, sales of AJI-NO-MOTO for processed food manufacturers decreased, reflecting lower sales volume, and sales of nucleotides decreased substantially as sales volume declined due to factors including increased production by competitors. Sales of bioscience products and fine chemicals decreased 2%, or 1.6 billion yen, to 98.6 billion yen, and operating income decreased 4%, or 0.2 billion yen, to 6.3 billion yen. Sales of feed-use amino acids increased as a result of higher sales volume of Lysine and firm selling prices. In the pharmaceuticals business, sales of self-distributed products were down compared with the previous interim period due to sluggish sales of core products in addition to lower sales volume of products affected by supply constraints due to the earthquake. Overall, however, sales remained near the level of the previous interim period because royalty income increased. Operating income increased due to factors including higher royalty income and cost reductions. II. Revisions to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2012 In view of recent performance trends and other factors, Ajinomoto Co. has revised its performance forecast for the fiscal year ending March 31, 2012, as outlined in the table below. The revised forecast replaces the forecast announced on May 9, 2011. 1. Revisions to the Consolidated Performance Forecast for the Fiscal Year Ending March 31, 2012 (April 1, 2011 - March 31, 2012)  2. Reasons for the Revisions In the overseas food products business, operating income is projected to be lower than the initial forecast due in part to decreased sales volume of umami seasonings for processed food manufacturers in addition to greater-than-expected increases in raw material and fuel prices and the strength of the yen against other currencies. On the other hand, in the domestic food products business, operating income is expected to be higher than the initial forecast because of a projected decrease in selling and other expenses reflecting the decrease in sales promotion activities due to the impact of the earthquake. The flooding in Thailand has also been taken into account. As a result, for overall consolidated performance for the fiscal year ending March 31, 2012, Ajinomoto Co. projects that while net sales will be lower than in the previous forecast due to the effect of foreign exchange rates, operating income, ordinary income and net income will be higher. This forecast assumes an exchange rate of 78.5 yen to 1 U.S. dollar. There is no change to the dividend forecast announced on May 9, 2011.
About Ajinomoto Ajinomoto is a global manufacturer of high-quality seasonings, processed foods, beverages, amino acids, pharmaceuticals and specialty chemicals. For many decades Ajinomoto has contributed to food culture and human health through wide-ranging application of amino acid technologies. Today, the company is becoming increasingly involved with solutions for improved food resources, human health and global sustainability. Founded in 1909 and now operating in 25 countries, Ajinomoto had net sales of JPY 1,207.6 billion (USD 14.2 billion) in fiscal 2010. 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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