Noritake expects 80% plunge in profit

Noritake Co. said on 6 March that it expects to book JPY 1.5 billion in group operating profit for fiscal 2001, an 80% year-on-year drop. Consolidated sales are seen edging down 6% to JPY 118 billion,…

Noritake Co. said on 6 March that it expects to book JPY 1.5 billion in group operating profit for fiscal 2001, an 80% year-on-year drop. Consolidated sales are seen edging down 6% to JPY 118 billion, tumbling 15% once JPY 11.5 billion in sales at a new subsidiary are excluded. Sales of pastes used in electric materials are estimated to have fallen by 50% due to slumping demand from the information technology industry and the increasing popularity of low-priced products. Sales of industrial abrasives are also expected to be poor because clients have slashed their capital investment. The firm“s overall performance is likely to benefit only slightly from the weaker yen since gains from the currency“s weakness are often offset by price cuts. Group net profit is projected to fall 56% to JPY 1.1 billion on a 72% drop in pretax profit to JPY 2.3 billion.