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March 16, 2004

Revised Earnings Forecast for the Fiscal Year Ending March 31, 2004

Promise News Releases

Promise has made the following revisions to its fiscal 2004 (April 1, 2003--March 31, 2004) earnings forecast released on October 23, 2003 along with the announcement of the Company's interim financial results. Promise's earnings forecast was revised in view of the results of its voluntary retirement program and such factors as recent trends in the Company's business results.  

 

 

Details

1. Revised earnings forecast figures (April 1, 2003--March 31, 2004)

(Consolidated)                                                                                               (Millions of yen)

 

Operating income

Operating profit

Recurring profit

Net income

Previous forecast (A)

393,392

81,950

83,374

48,116

Recently revised forecast (B)

390,831

86,904

88,416

40,205

Amount of revision (B-A)

-2,561

4,954

5,042

-7,911

Percentage change (%)

-0.7

6.0

6.0

-16.4

Previous fiscal year

(FY ended March 31, 2003)

410,619

106,957

108,030

60,716

YOY percentage change under original forecast

-4.2

-23.4

-22.8

-20.8

YOY percentage change under revised forecast

-4.8

-18.7

-18.2

-33.8

 

 (Non-consolidated)                                                                                           (Millionsof yen)

 

Operating income

Operating profit

Recurring profit

Net income

Previous forecast (A)

323,505

78,554

80,000

57,000

Recently revised forecast (B)

322,270

81,558

82,844

48,200

Amount of revision (B-A)

-1,235

3,004

2,844

-8,800

Percentage change (%)

-0.4

3.8

3.6

-15.4

Previous fiscal year

(FY ended March 31, 2003)

326,556

105,419

107,042

61,411

YOY percentage change under original forecast

-0.9

-25.5

-25.3

-7.2

YOY percentage change under revised forecast

-1.3

-22.6

-22.6

-21.5

 

2. Principal reasons for revision

1)      <Operating income> (2,561 million yen below original forecast)

Consumer loans outstanding is trending slightly below plan; thus, we expect interest

revenue will also be slightly below plan.

2)      <Operating profit/recurring profit> (Results in both categories expected to

exceed original forecast by 4,954 million yen and 5,042 million yen, respectively.)

We anticipate that personnel expenses will be less than the Company's original plan. This is attributable to a decline in net periodic benefit cost---due to such factors as a recovery in stock market conditions---and to a decrease in accrued bonuses allocated for retiring employees accompanying the implementation of a voluntary retirement program.

3)      <Net income> (7,911 million yen below original forecast)

Promise expects to post an extraordinary loss from special severance payments totaling 18,700 million yen (additional severance payments for employees choosing voluntary retirement) accompanying the implementation of a voluntary retirement program.

 

To respond to recent changes in the business environment, Promise is undertaking structural reforms focused on three areas: "management," "business" and "organization and personnel." One such reform was the recent implementation of the voluntary retirement program. By taking this measure, we seek to correct the Company's employee age composition while achieving a more appropriately structured human resources portfolio. Under its new corporate structure, the Promise Group will work in unison to establish a new foundation for growth and strive to strengthen its earning power.

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