PROTO CORPORATION (the "Company") hereby revises its earnings forecasts for the six months ending September 30, 2014, as announced on May 12, 2014.
1. Revision of Consolidated Earnings Forecast for the Six Months Ending September 30, 2014
(April 1, 2014 – September 30, 2014)
2. Reason of the Revision
With regard to the consolidated earnings forecast for the first half of the current term, the sales volume of tires of AUTOWAY Co., Ltd., which sells imported tires, was smaller than the initial estimate due to a negative reaction following a rush in demand ahead of the consumption tax hike, and in the used car export business of Kings Auto Co., Ltd., the number of luxury cars exported to Hong Kong, which is a major destination, declined. As a result, the sales and gross profit of the Automobile-related Information business are estimated to be less than the values estimated at the beginning of the current term. However, the performance of the Goo Series is healthy, and we will reduce SG&A expenses, including employment and advertising costs, and so operating and ordinary incomes are estimated to reach the original target values.
In addition to the above factors, the liquidation of PROTO SINGAPORE Pte. Ltd. was determined during the first half of the current term, although the liquidation date had not been determined at the beginning of the current term, and then the profit from corporate liquidation arose. Accordingly, net income is estimated to exceed the previously announced value.
As for full-year earnings forecast, we are checking the details, and if it is judged necessary to revise it, we will announce it soon.
Note: The forecasted values written in this document were produced based on the available information as of the release date of this document, and so actual business performance may be different from the forecasted values due to various factors.