Sumitomo Heavy Industries Ltd. said Wednesday its group net loss swelled to 28.61 billion yen in fiscal 2000 from the previous year’s 6.33 billion yen, remaining in the red for three years in a row on sluggish revenues and heavy restructuring costs.
The Tokyo-based heavy machinery maker also posted a 70.8 percent fall in group pretax profit to 1.60 billion yen on 9.3 percent lower sales at 513.75 billion yen.
Sumitomo attributed the loss to lower large-lot orders and scaled-down construction machinery division, while the company also wrote off 33.80 billion yen in extraordinary losses under a program to restructure and streamline the construction machinery operation.
The company also booked 27.46 billion yen in extraordinary losses to cover the shortfall in retirement benefit reserves under a new accounting rule.
Sumitomo will not pay a dividend, it said. The company paid dividend of 3 yen per share in the previous year.
On a parent-only basis, Sumitomo registered a net loss of 23.38 billion yen, compared with the previous year’s net profit of 4.05 billion yen, and pretax profit of 4.11 billion yen, down 58.3 percent, on sales of 305.60 billion yen, down 15.6 percent.
For the current year that began April 1, the company expects a group net profit of 3 billion yen and pretax profit of 6 billion yen on sales of 510 billion yen.
Hitachi Zosen profits
Heavy machinery and engineering firm Hitachi Zosen Corp. said Wednesday its group net profit for the fiscal year that ended March 31 rose 22.5 percent to 2.91 billion yen, due mainly to an extraordinary profit related to the sale of production facilities and aggressive cost cuts.
Group revenues, however, fell 2.8 percent to 462.2 billion yen, while group pretax profit dropped 16.3 percent to 9.56 billion yen, as competition intensified in sectors such as environmental equipment and shipbuilding. , Hitachi Zosen said. Group net profit per share was 2.9 yen, up from 2.37 yen the previous year. As in the previous year, the company will pay no dividend.
On an unconsolidated basis, it posted a net loss of 21.95 billion yen, a reversal from the previous year’s profit of 1.61 billion yen, and a pretax profit of 3.02 billion yen, down 2.6 percent, on revenues of 336.12 billion yen, down 6.3 percent.
For the current fiscal year, the company forecasts a group net profit of 3 billion yen and a group pretax profit of 9.5 billion yen on revenues of 440 billion yen.
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