04 June 2010 04:44 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese chemical producer Asahi Kasei has reduced its net profit forecast for year to March 2011 by nearly half to Y42.5bn ($459m) with sales seen to come in 6.8% lower than the original target at Y1,677bn, as the global financial crisis had sidetracked the company from its medium-term goals.
In a presentation made to analysts on Friday, Asahi Kasei president Taketsugu Fujiwara said that the company had undershot its five-year plan (FY 2006-2010) targets in the past two years, when profits shrank considerably.
From Y127.7bn in the fiscal year ending March 2008, Asahi Kasei's net income slumped to Y35bn in the following year, with a slight improvement to Y57.6bn in year to March 2010, based on the presentation materials.
Fujiwara cited that the company failed to create new businesses in the electronic materials and chemicals specialties segments and do large-scale merger and acquisitions to expand as set in its five-year plan that would end in the current financial year.
The profitability of its fibres and construction materials business had also not improved, he added.
Based on the presentation slide provided, Asahi Kasei intends to have a more global focus and withdraw from non-profitable businesses going forward.
The company would set its next five-year initiative in May 2011.
($1 = Y92.66)
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