Mitsubishi Materials Corp. plans to sell its 50 percent stake in OAP Towers, a building in Osaka, to a company outside its group, the company said Friday.
The company expects around 37 billion yen from the sale, which will lead to an appraisal loss of around 30 billion yen. A buyer for the building has not been decided yet, but Mitsubishi Materials hopes to make the sale as early as the 2002 business year.
The 30 billion yen appraisal loss would be part of the 79 billion yen in extraordinary loss that Mitsubishi Materials is now forecasting for the business year that ends March 31.
The other losses include 30 billion yen in investment and loan-loss reserves, as well as appraisal losses on its stockholdings.
OAP Towers, which houses a hotel, offices and shops, is in the Osaka Amenity Park, a commercial and residential development complex.
Mitsubishi Estate Co. owns the other 50 percent of OAP Towers and plans to post appraisal losses for 2001, but it has not yet decided whether it will sell its stake in the building.
In its revised forecast, Mitsubishi Materials said it expects a consolidated net loss of 63 billion yen for the year, compared with the 20 billion yen loss it was predicting Sept. 27.
Group pretax loss is forecast to come to 19 billion yen, compared with the previously projected 6.5 billion yen.
Projected consolidated sales remain unchanged at 1.05 trillion yen.
In 2000, the company chalked up a group net profit of 7.15 billion yen. and a pretax profit of 36.88 billion yen on sales of 1.144 trillion yen.
On a parent company basis, Mitsubishi Materials foresees a net loss of 38 billion yen for 2001, compared with the 4 billion yen predicted earlier, while a pretax profit is forecast at 4.5 billion yen, compared with the 4 billion yen forecast previously.
The forecast for sales is unchanged at 510 billion yen.
The company will skip dividend payments for the year. In 2000, it paid 3 yen per share.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.