ProtoPROTO CORPORATION


News ReleaseNews Release

April 17, 2015
Notice on Modifications on Earnings Forecast

 We would like to inform you that we have modified the consolidated earnings forecast for FY ending March 2015 (from April 1, 2014 to March 31, 2015), which was announced on October 31, 2014, based on the recent business performance trend as follows.


1. Modifications of the consolidated earnings forecast figures for FY ending March 2015 (from April 1, 2014 to March 31, 2015)

(Unit: million yen)

  Net Sales Operating
Income
Ordinary
Income
Net Income Net Income
per Share
Previously announced
forecast (A)
        Yen
52,600 5,350 5,500 3,440 168. 64
Current modified
forecast (B)
48,600 4,230 4,550 2,410 118. 01
Change (B-A) (4,000) (1,120) (950) (1,030)
Change rate (%) (7.6) (20.9) (17.3) (29.9)
(Reference) Results of
previous FY
(FY ended March 2014)
54,761 4,735 5,009 2,627 128. 39

2. Reasons for the modifications

(1) Net Sales

  •  The sales are expected to fall below the modified forecast that was announced on October 31, 2014, mainly because a) the number of luxurious vehicles to be exported to Hong Kong by Kings Auto Co., Ltd., which is in the used vehicle export business, fell below the planned figure, b) the sales expansion of PB products such as GooPLUS by the Company fell below the plan, and c) the number of tire sales by Autoway Co., Ltd, which is in the import tire business, fell below the plan due to impact of negative drop from increase in consumption tax throughout the FY.

(2) Operating Income, Ordinary Income

  •  Although the selling expenses and general and administrative expenses are expected to be smaller than the planned figure, they were not enough to augment the shortfall of the gross margin resulting from lower-than-expected sales as described above. Thus, the operating income and ordinary income is expected to fall below the modified forecast that was announced on October 31, 2014.

(3) Net Income

  •  As described above, the operating income and ordinary income are expected to fall below the plan. In addition, we carefully examined the future recovery possibility of the goodwill, which was recognized at the time of obtaining shares of Kings Auto Co., Ltd., based on its latest business performance trend, etc. and concluded that the estimated non-recoverable amount of ¥384 million should be recognized as impairment loss. As a result, net income is expected to fall below the modified forecast that was announced on October 31, 2014.

(Note)
Although the earnings forecast figures in this document are calculated based on the information available as of the day of announcement, the actual earnings may be different from the above forecast figures due to uncertain factors that are inherent in the forecast.




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