This is to inform you that ZEON Corporation today filed a report with the Tokyo Stock Exchange regarding a revised forecast for the consolidated financial results for the first half of the fiscal year ending March 31, 2006, as follows:
| Name of listed company: | ZEON Corporation | |
| Representative: | President & CEO | Naozumi Furukawa |
| (Code: 4205) | ||
| Contact: Tel: +81-3-3216-1412 |
Director and General Manager, Finance & Accounting Dept. |
Tadayuki Minami |
Announcement of Revised Forecast for the Consolidated Financial Results for the First Half of FY2005
ZEON Corporation will revise its consolidated financial projections for the first half of FY2005, originally announced on May 18, 2005, after taking into consideration recent developments in corporate performance as follows.
| 1. | Revision of forecast for the first half of FY2005 performance (consolidated) (From April 1, 2005 to September 30, 2005) |
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(Unit: Millions of yen)
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| 2. | Revision of forecast for the first half of FY2005 performance (non-consolidated)
(From April 1, 2005 to September 30, 2005) |
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(Unit: Millions of yen)
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| 3. | Reasons for the revision | ||||||||||||||||||||||||
During the first half of FY2005, raw material prices continued to stay higher due to a surge in crude oil and naphtha prices, and the yen has been weaker than expected against the US dollar. Demand for our products, however, including automobile, tire, and LCD components, as well as overseas markets has remained robust. Under such circumstances, we have strived to continuously reduce costs and adjust sales prices in response to the soaring raw material prices. Meanwhile, the performance of our U.S. subsidiaries exceeded its initial target due to favorable growth on sales, although one U.S. subsidiary paid a settlement in a liability lawsuit related to NBR (acrylonitrile butadiene rubber) and we sold shares of a U.S. subsidiary. In domestic operations, a large increase in the sales of subsidiary’s trading divisions considerably boosted consolidated net sales. Extraordinary loss and tax expenses were lower than projected. As a result, we expect net sales, ordinary income, and net income to exceed our initial forecast on both a consolidated and non-consolidated basis. Considering a continued uncertaintys factor, such as crude oil and naphtha prices we will not revise the full-year forecast for the financial results for FY2005 announced May 18, 2005. |
| Note: | Note: The above forecasts for non-consolidated and consolidated financial results were compiled based on decisions made from information currently available, and as such, actual performance may differ from the above numerical target, depending on any change in the economic and business conditions under which ZEON Corporation operates. |
