ZENRIN changed its full-year ordinary profit forecast from the previous ¥3.9 billion to ¥2.6 billion, resulting in a forecast 33.3% decline in profit. Consolidated ordinary income/loss turned to a loss in the July–September quarter, which is likely to affect cumulative results.
ZENRIN announced its cumulative second-quarter results for April–September on 29 October, and consolidated ordinary income/loss turned to a loss rather than being in the ¥12? billion loss range. Accordingly, it changed its full-year ordinary income/loss forecast from the previous ¥3.9 billion to ¥2.6 billion. The company had recorded a profit in the same period of the previous year, but the forecast has been substantially reduced from the initial outlook.
In the most recent three months, consolidated ordinary income/loss turned to a loss in the July–September quarter, and the operating income margin on net sales also deteriorated. Based on first-half results and the second-half plan, the company indicated that second-half ordinary profit is calculated to increase from the same period of the previous year. However, the downward revision is expected to push down overall profit levels.
According to the earnings summary, this fiscal year’s net sales and profit levels came in below the previous outlook, particularly constraining profit levels in the second half. By quarter, profit has not shown a return to the black compared with the previous fiscal year, and the recovery in results may take time.
The revision is a formal announcement based on the earnings summary, and the second-half outlook may be revised again if new factors arise. Investors will need to monitor additional information and the subsequent performance trend.