Ito-Yokado profit slides 80.9% amid restructuring

Ito-Yokado Co. said Thursday its group net profit tumbled 80.9 percent in the first half that ended Aug. 31 from a year earlier to 6.79 billion yen due to restructuring costs.

The major retail group blamed the fall on one-time restructuring-related losses of 20 billion yen, including those from the sale of its stake in loss-making discount store Daikuma Co.

Group net profit per share was 16.22 yen, down from 85.20 yen a year earlier.

In releasing group earnings data based on U.S. accounting standards, Ito-Yokado also reported a 9.1 percent fall in group profit before taxes and extraordinary items to 92.47 billion yen. It posted a nonoperating profit of 24.6 billion yen from setting up a retirement benefit trust a year earlier.

Group operating profit rose 20.2 percent to a record 100.76 billion yen due to restructuring efforts, topping the 100 billion yen mark for the first time for any interim period.

Group operating revenues rose 5.3 percent to 1.657 trillion yen on brisk earnings at Seven-Eleven Japan Co., its subsidiary.

For the first half, Ito-Yokado plans to keep its interim dividend unchanged at 16 yen per share.

For the full year to Feb. 28, Ito-Yokado expects group net profit to fall 34.1 percent to 34.5 billion yen and profit before taxes and extraordinary items to rise 4.6 percent to 183 billion yen on a 5.9 percent rise in operating revenues to 3.38 trillion yen.

Ito-Yokado said it plans to pay a yearend dividend of 18 yen per share, unchanged from the previous year.

7-11 earnings rise

Seven-Eleven Japan Co. said Thursday its group net profit for the half-year ended Aug. 31 rose 4.1 percent from a year earlier to 44.47 billion yen.

The increase came on brisk performance in its core convenience store operations.

In its consolidated earnings report, the company posted an operating profit of 81.79 billion yen, up 4 percent, and a pretax profit of 80.33 billion yen, up 4.5 percent, on an 8.8 percent gain in operating revenues to 212.9 billion yen.

Group net profit per share stood at 54.05 yen, up from 51.31 yen a year earlier.

Seven-Eleven Japan is a unit of Ito-Yokado Co.

The company said it will pay a dividend of 16.5 yen per share for the interim period, up from 16 yen a year ago.

For the full-year to Feb. 28, Seven-Eleven Japan expects a group net profit of 81.8 billion yen, up 0.1 percent from the previous year, a group operating profit of 155.3 billion yen, up 3.6 percent, and a group pretax profit of 153.3 billion yen, up 3.2 percent on operating revenues of 417 billion yen, up 8.5 percent.