Oi Electric revised its consolidated ordinary income for the first half downward, from the previous forecast of a profit to a loss. The full-year forecast was left unchanged, but the timing shift in sales recognition and higher raw-material prices in its information and communications equipment manufacturing and sales business had an impact.
After the close of trading on 29 September, Oi Electric revised its consolidated ordinary income for the cumulative second quarter (April-September) downward, from the previous forecast of a ¥180 million profit to a ¥200 million loss. Ordinary income was a ¥200 million profit in the same period of the previous year. The full-year ordinary profit forecast was left unchanged at the previous ¥1.55 billion.
The company cited the expected shortfall in sales from its previous forecast, as the timing of sales recognition for some optical transmission equipment projects in its information and communications equipment manufacturing and sales business shifted to the second half or later. Deteriorating profit margins due to higher raw-material prices also had an impact.
Details of the revision to the current fiscal-year earnings forecast show revised first-half sales of ¥14.3 billion, an operating loss of ¥200 million, an ordinary loss of ¥200 million and a net loss of ¥110 million. Revised earnings per share were ¥94.1, and the dividend was set at ¥20.
The company said it would leave its full-year forecast unchanged, taking into account expected optical transmission equipment sales in the second half and progress in efforts to improve the profitability of communications equipment for second-generation smart meters.