TOKYO -(Dow Jones)- Ajinomoto Co. (2802.TO) said Monday that it swung into a net loss for the nine-month period ended Dec. 31 and now expects a loss-making full year for the first time in eight years, under the weight of the yen's strength and weaker prices for feed-use amino acid.
Japan's largest maker of cooking seasonings suffered a net loss of Y4.31 billion, a swing from a Y30.26 billion profit a year earlier.
The company had group sales of Y924.21 billion, a 1.0% fall from Y933.22 billion. Its operating profit fell 37% to Y33.71 billion.
During the just-ended period, the company has suffered from the yen's strength, which lowered its overseas sales when translated into the Japanese currency. It also said its amino acid related business has taken a toll from the global economic downturn.
In addition, it booked Y14.7 billion worth foreign exchange losses as part of non-operating expenses, due partly to derivatives-related trading at its Brazil-based subsidiaries.
It also reported a special loss of Y13.4 billion due to amortization of Amoy Food. Ajinomoto in 2006 bought Amoy Food to strengthen its operations in China and other fast-growing Asian markets.
For the fiscal year ending in March, the company now estimates it will suffer a net loss of between Y9 billion and Y13 billion, a turnaround from a net profit of Y5 billion previously foreseen. It also revised down its sales outlook to Y1.195 trillion from Y1.240 trillion.
The company compiles its earnings results under Japanese accounting standards.
-By Hiroyuki Kachi, Dow Jones Newswires, 813-5255-2929, hiroyuki.kachi@dowjones.com
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Publié le 02 Février 2009 Copyright © 2009 Dowjones