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Jul. 27, 2012Print(PDF/47KB)Finances

Revision of Financial Forecasts

In light of recent performance trends and other factors, Dainippon Sumitomo Pharma Co., Ltd. announces revisions to the financial forecasts made on May 10, 2012.

(Millions of yen)

1. Revision of Consolidated Financial Forecasts for the Second Quarter of the Year Ending March 31, 2013 (April 1, 2012 to September 30, 2012)

Net salesOperating incomeOrdinary incomeNet incomeEarnings per share
Previous Forecasts (A) 176,000 11,000 10,500 5,000 ¥12.58
New forecasts (B) 179,000 17,200 17,000 8,800 ¥22.15
(B)-(A) 3,000 6,200 6,500 3,800
Change (%) 1.7 56.4 61.9 76.0
(Reference) Results for Second Quarter of the year ended March 31, 2012 178,026 14,726 14,480 9,569 ¥24.09

2. Revision of Consolidated Financial Forecasts for the Year Ending March 31, 2013 (April 1, 2012 to March 31, 2013)

Net salesOperating incomeOrdinary incomeNet incomeEarnings per share
Previous Forecasts (A) 348,000 22,000 21,000 10,500 ¥26.43
New forecasts (B) 348,000 25,000 24,000 12,000 ¥30.20
(B)-(A) - 3,000 3,000 1,500
Change (%) - 13.6 14.3 14.3
(Reference) Results for the year ended March 31, 2012 350,395 20,402 18,872 8,629 ¥21.72

3. Reason for revision

  • (1) Second Quarter of the Year Ending March 31, 2013
    Due to strong sales from existing products in North America, a divergence in the time of product shipment in China, etc., net sales are expected to exceed the previous forecasts. On the other hand, in addition to the impact of the yen's appreciation, marketing costs for new products in North America being shifted to the third quarter, etc., SG&A expenses are expected to be lower than the previous forecasts.
    Consequently, in the revised consolidated financial forecasts for the first half of the year ending March 31 2013, net sales increase by 3.0 billion yen to 179.0 billion yen, operating income increases by 6.2 billion yen to 17.2 billion yen, ordinary income increases by 6.5 billion yen to 17.0 billion yen and net income increases by 3.8 billion yen to 8.8 billion yen compared to the previous forecasts on May 10, 2012.
  • (2) Year Ending March 31, 2013
    Although for North America there is an impact from currency exchange, strong sales are expected to continue from existing products. On the other hand, with the increased impact from generic drug utilization promoted in Japan, the Company expects no change to the previous forecasts for total net sales.
    For SG&A expenses excluding R&D, from the third quarter, operating expenses in North America are expected to increase. However, because of the appreciation of the yen, etc., the forecasts remain unchanged. For reasons including the yen's appreciation, etc., R&D expenses are expected to decrease compared to the previous forecasts.
    Consequently, in the revised consolidated financial forecasts for the year ending March 31 2013, the Company anticipates that operating income increases by 3.0 billion yen to 25.0 billion yen, ordinary income increases by 3.0 billion yen to 24.0 billion yen and net income increases by 1.5 billion yen to 12.0 billion yen compared to the previous forecasts on May 10, 2012.

    In addition, in light of recent currency movements, the forecast exchange rate for the year Ending March 31, 2013 has been changed to 80yen/US$1 (previously 83yen/US$1).
Note: Forecasts shown above are based on management's assumptions and beliefs in light of the information currently available, and involves risks and uncertainties. Actual financial results may differ materially depending on a number of factors, including economic conditions.