The board of directors of Toyo Engineering Corporation (TOYO) has resolved the following revision to the consolidated financial forecasts for the fiscal year ending March 31, 2018, which were announced on May 19. 2017.
1. Revision to the consolidated financial forecasts for the fiscal year ending March 31, 2018 (from April 1, 2017 to March 31, 2018)
| Net Sales | Operating Income | Ordinary Income | Profit Attributable to Owners of Parents | Net Income Per Share | |
| Previous Forecast (A)(Announced on May 19, 2017) | Millions of Yen 370,000 |
Millions of Yen 6,500 |
Millions of Yen 5,000 |
Millions of Yen 2,000 |
Yen 52.17 |
| Revised Forecast (B) | 350,000 | (18,000) | (16,000) | (18,000) | (469.54) |
| (Decrease)(B) – (A) | (20,000) | (24,500) | (21,000) | (20,000) | |
| Percentage (Decrease)% | (5.4%) | - | - | - | |
| (Reference)Results for the FY ended March 31, 2017 | 431,917 | (2,009) | 1,603 | 1,472 | 38.42 |
2. Reason of Revisions
Because of increase of construction cost and lower construction progress than expected at ethylene project in USA, net sales and operating income are forecasted to decrease by 20,000 million yen and 24,500 million yen from the previous forecast, down to 350,000 million yen and loss of 18,000 million yen, respectively.
Non-operating profit is forecasted to increase by 3,500 million yen due to improvement of equity method affiliates, and ordinary income will decrease by 21,000 million yen to loss of 16,000 million yen. As a result, profit attributable to owners of parents will decrease by 20,000 million yen to loss of 18,000 million yen.
In respect of the ethylene project in USA, whilst acceleration measures had been worked out such as increase of workers, night-time shift and others since last spring in order to recover the delay in civil construction caused by the problems of soil conditions and piling, efficient project operation has been prevented due to unusual adverse weather conditions such as continuous rain, hurricane and others. Under such situation, TOYO has re-evaluated acceleration measures of construction during this third quarter of FY2017 and agreed with the client to extend project completion time from 1st to 2nd half of FY2018. However, significant increase of construction cost has been recognized during such re-evaluation in respect of indirect costs, construction management system and productivity of construction workforce, etc.
3. Revision of Dividends Forecast
1) Reason of Revisions
Based on the revision to the forecast of consolidated results, TOYO regrets to inform that it will pass year-end dividends considering difficult financial situation where priority shall be given to improvement of financial performance and balance sheet.
TOYO sincerely requests all shareholders to understand its decision taking into consideration the present company situation.
| Cash dividends per share | |||||
| Q1 | Q2 | Q3 | Q4 | Annual | |
| Previous Forecast (Announced on May 19, 2017) | Yen - |
Yen 0.00 |
Yen - |
Yen 15.00 |
Yen 15.00 |
| Revised Forecast | - | 0.00 | 0.00 | ||
| Results for the FY ended March 31, 2018 | - | 0.00 | |||
| (Reference) Results for the FY ended March 31, 2017 | - | 0.00 | - | 2.00 | 2.00 |
(Remark) TOYO conducted a one-for-five reverse stock split of company’s shares effective October 1, 2017, which is factored into previous forecast of the net income per share for the fiscal year ending March 31, 2018 shown here. It would be 3.00 yen per share if the reverse stock split were not taken into account.
(Remark) The forecast of consolidated results above were compiled based on the information available at the time of announcement. Depending on various factors, actual business results may differ from the predicted figures.