October 29, 2018
DOWA HOLDINGS CO., LTD.
DOWA HOLDINGS CO., LTD. (“the Company”) has revised its first half consolidated forecasts for fiscal 2018 (April 1, 2018 to September 30, 2018) and full-year consolidated forecasts for fiscal 2018 (April 1, 2018 to March 31, 2019), which were announced on May 11, 2018, in light of the recent performance. Details are as follows:
1. Revisions of Consolidated Financial Forecasts
(1) First Half Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to September 30, 2018)
(Millions of Yen)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| Previous Forecast (A) (Announced on May 11, 2018) |
229,000 | 14,500 | 17,500 | 12,500 | 211.20 |
| Revised Forecast (B) | 221,800 | 9,300 | 12,800 | 8,800 | 148.69 |
| Change (B－A) | (7,200) | (5,200) | (4,700) | (3,700) | |
| Percentage Change (%) |
(3.1%) | (35.9%) | (26.9%) | (29.6%) | |
|
(Ref.) Previous Fiscal Year First Half Results |
219,302 | 14,672 | 17,258 | 11,733 | 198.24 |
(2) Full-year Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)
(Millions of Yen)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| Previous Forecast (A) (Announced on May 11, 2018) |
475,000 | 32,000 | 38,000 | 26,500 | 447.75 |
| Revised Forecast (B) | 455,000 | 24,500 | 30,000 | 21,000 | 354.82 |
| Change (B－A) | (20,000) | (7,500) | (8,000) | (5,500) | |
| Percentage Change (%) |
(4.2%) | (23.4%) | (21.1%) | (20.8%) | |
|
(Ref.) Previous Fiscal Year Results |
454,754 | 30,948 | 36,355 | 24,693 | 417.21 |
2. Reasons for the Revisions
In the business environment of DOWA Group for the first half of fiscal 2018, the exchange rate was on par with the initial assumption, but the price of metals such as copper and zinc declined sharply. In addition, due to the impact of loss by lower of cost or market method on raw material inventories at the end of first half, the Company expects earnings lower than the previous forecast, mainly in Nonferrous metal segment.
The Company also revised the second half forecast on the premise that the current level of metal prices will continue.
Assumptions on the financial forecasts are as follows:
|
Previous Forecast |
First Half Average |
Revised Forecast |
|
|---|---|---|---|
| Exchange Rates (Yen per US$) |
110.0 | 110.3 | 110.0 |
| Copper (US$ per ton) |
7,000 | 6,487 | 6,200 |
| Zinc (US$ per ton) |
3,200 | 2,824 | 2,600 |
| Indium (US$ per kg) |
350 | 286 | 250 |
3. Consolidated Financial Forecasts by Segment
(1) First Half Consolidated Forecasts for Fiscal 2018 (April 1, 2018 to September 30, 2018)
(Billions of Yen)
| Previous Forecast | Revised Forecast | Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | |
| Environmental Management & Recycling | 52.7 | 3.0 | 3.1 | 51.2 | 2.8 | 3.2 | (1.5) | (0.2) | 0.1 |
| Nonferrous Metals | 109.9 | 4.5 | 6.8 | 109.3 | 0.1 | 2.7 | (0.6) | (4.4) | (4.1) |
| Electronic Materials | 36.2 | 2.0 | 2.7 | 33.3 | 1.6 | 2.1 | (2.9) | (0.4) | (0.6) |
| Metal Processing | 46.6 | 3.5 | 3.5 | 46.0 | 3.1 | 3.2 | (0.6) | (0.4) | (0.3) |
| Heat Treatment | 14.3 | 1.3 | 1.2 | 13.6 | 1.2 | 1.2 | (0.7) | (0.1) | 0 |
| Other / Elimination | (30.7) | 0.2 | 0.2 | (31.6) | 0.5 | 0.4 | (0.9) | 0.3 | 0.2 |
| Total | 229.0 | 14.5 | 17.5 | 221.8 | 9.3 | 12.8 | (7.2) | (5.2) | (4.7) |
(2) Consolidated Full-year Forecasts for Fiscal 2018 (April 1, 2018 to March 31, 2019)
(Billions of Yen)
| Previous Forecast | Revised Forecast | Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | |
| Environmental Management & Recycling | 109.3 | 6.5 | 6.7 | 104.5 | 5.5 | 6.3 | (4.8) | (1.0) | (0.4) |
| Nonferrous Metals | 227.0 | 9.6 | 13.8 | 224.3 | 4.0 | 8.0 | (2.7) | (5.6) | (5.8) |
| Electronic Materials | 73.3 | 4.0 | 5.7 | 66.7 | 3.2 | 4.5 | (6.6) | (0.8) | (1.2) |
| Metal Processing | 95.5 | 7.6 | 7.7 | 93.5 | 7.2 | 7.4 | (2.0) | (0.4) | (0.3) |
| Heat Treatment | 30.7 | 3.3 | 3.2 | 29.9 | 3.2 | 3.2 | (0.8) | (0.1) | 0 |
| Other / Elimination | (60.8) | 1.0 | 0.9 | (63.9) | 1.4 | 0.6 | (3.1) | 0.4 | (0.3) |
| Total | 475.0 | 32.0 | 38.0 | 455.0 | 24.5 | 30.0 | (20.0) | (7.5) | (8.0) |
(Notes)
The above forecasts are made based on information available at the time of the announcement and certain assumptions that the Company considers reasonable. Actual performance and other results may differ significantly from the forecasts, due to a variety of factors.
