SHINKO revised its current-year ordinary profit forecast down from ¥1.03 billion to ¥890 million. Ordinary income for the cumulative second quarter was a loss of ¥70 million, and the company transitioned to consolidated accounting during the period.
The company announced its results after the market close on 13 November. Consolidated ordinary income for the cumulative second quarter (April-September) was a loss of ¥70 million, compared with a non-consolidated profit of ¥160 million in the year-earlier period. Accordingly, the full-year consolidated ordinary profit forecast was revised down 13.0%, from ¥1.03 billion on a non-consolidated basis to ¥890 million.
The company transitioned to consolidated accounting from the second quarter of the current fiscal year. Based on a calculation combining first-half results with the outlook for the second half, consolidated ordinary profit for October-March is expected to increase 27.3% year on year on a non-consolidated basis to ¥970 million.
In the latest three-month period, ordinary profit fell to ¥40 million in July-September, and the operating margin on sales deteriorated sharply from 5.2% in the year-earlier period to 0.7%.