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Feb. 03, 2010Print(PDF/62KB)Finances

Revision of Financial Forecasts for the Year Ending March 31, 2010

Dainippon Sumitomo Pharma Co., Ltd. announces the revision of its financial forecasts for the year ending March 31, 2010, which reflects changes in the Company's business performance since the previous forecasts announced on October 29, 2009, including the acquisition of Sepracor Inc who became a wholly-owned subsidiary of the Company's U.S. Holding Company in October 2009.

(millions of yen)

1. Revision of Consolidated Financial Forecasts for the Year Ending March 31, 2010 (April 1, 2009 - March 31, 2010)

Net salesOperating
income
Ordinary
income
Net incomeEarnings
per share
(yen)
Previous forecasts (A) 264,000 29,000 27,000 18,000 ¥45.30
New forecasts (B) 295,000 31,000 29,000 19,000 ¥47,82
(B) - (A) 31,000 2,000 2,000 1,000
Change (%) 11.7 6.9 7.4 5.6
(Reference) Results for the year ended March 31, 2009 264,037 31,166 31,395 19,987 ¥50.30

2. Revision of Non-Consolidated Financial Forecasts for the Year Ending March 31, 2010 (April 1, 2009 - March 31, 2010)

Net salesOperating
income
Ordinary
income
Net incomeEarnings
per share
(yen)
Previous forecasts (A) 245,000 27,300 25,400 16,500 ¥35.49
New forecasts (B) 247,500 30,300 28,900 18,500 ¥46,56
(B) -(A) 2,500 3,000 3,500 2000
Change (%) 1.0 11.0 15.7 15.2
(Reference) Results for the year ended March 31, 2009 248,433 30,582 30,893 19,729 ¥49.65

3. Reason for revision

The Company's U.S. subsidiaries including Sepracor Inc who became a wholly-owned subsidiary of the Company's U.S. Holding Company on October 15, 2009 are newly added to the list of the consolidated subsidiaries. For this reason, their October-December performance figures are to be consolidated in the 4th quarter records.
At first, the yearly financial forecasts on a previous basis which does not include the financial impacts by new consolidation of U.S. subsidiaries indicate increases both in sales and profit compared to the previous forecasts in the net sales by 2,500 million yen, in the operating income by 3,000 million yen, in the ordinary income by 3,500 million yen, in the net income by 2,000 million yen owing to sales increase in pharmaceutical business and curtailment of selling, general and administrative expenses.
Financial forecasts of U.S. subsidiaries before accounting for business combinations associated with the acquisition of Sepracor Inc are expected in the net sales to be 28,500 million yen, in the operating income to be 10,000 million yen, in the ordinary income to be 9,500 million yen, and in the net income to be 6,000 million yen.
Meanwhile, financial impacts largely pertaining to the amortizations of patent rights and goodwill resulting from the acquisition of Sepracor Inc are expected to be in the operating income as well as the ordinary income by 11,000 million yen and in the net income by 7,000 million yen.
Consequently, in the revised consolidated financial forecasts for the year ending March 31, 2010, the Company anticipates that the sales increase 31,000 million yen to 295,000 million yen, the operating income increases 2,000 million yen to 31,000 million yen, the ordinary income increases 2,000 million yen to 29,000 million yen and the net income increases 1,000 million yen to 19,000 million yen compared to the previous forecasts dated October 29, 2009.
Non-Consolidated financial forecasts for the year ending March 31, 2010 are expected to increase both in sales and profit compared to the previous forecasts in the net sales by 2,500 million yen, in the operating income by 3,000 million yen, in the ordinary income by 3,500 million yen, in the net income by 2,000 million yen owing to sales increase in pharmaceutical business and curtailment of selling, general and administrative expenses.

U.S. subsidiaries:
Dainippon Sumitomo Pharma America Holdings, Inc.
Dainippon Sumitomo Pharma America, Inc.
Sepracor Inc. and its consolidated subsidiary

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.