For Immediate Release
Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Takashi Shoda, President and Representative Director
(Code no.: 4568, First Section, Tokyo, Osaka and Nagoya Stock Exchanges)
Please address inquiries to Toshio Takahashi, Corporate Officer in Charge,
Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.co.jp/
Revisions of earnings forecasts for 1H FY 2006
Tokyo, October 27, 2006 - DAIICHI SANKYO COMPANY, LIMITED, in light of recent earnings trends and other factors, has made the following revisions to its consolidated earnings forecasts for 1H FY 2006 announced with 1Q results on July 31, 2006 and its non-consolidated earnings forecasts for 1H FY 2006 announced with FY 2005 results on May 12, 2006.
| 1. Revised consolidated forecasts for 1H FY 2006 (April 1, 2006-September 30, 2006) |
| (¥ million, %) |
| |
Net sales
|
Operating income
|
Ordinary income
|
Net income
|
Previous forecasts (A)
(Announced July 31, 2006) |
480,000
|
65,000
|
72,000
|
46,000
|
| Revised forecasts (B) |
485,500
|
78,000
|
88,000
|
66,500
|
| Change (B -A) |
5,500
|
13,000
|
16,000
|
20,500
|
| Percent change |
1.1
|
20.0
|
22.2
|
44.6
|
| Results in 1H FY 2005 |
451,808
|
80,345
|
82,642
|
49,450
|
| 2. Revised non-consolidated forecasts for 1H FY 2006 (April 1, 2006-September 30, 2006) |
| (¥ million, %) |
| |
Net sales
|
Ordinary income
|
Net income
|
Previous forecasts (A)
(Announced May 12, 2006) |
3,000
|
100
|
100
|
| Revised forecasts (B) |
2,750
|
120
|
60
|
| Change (B - A) |
-250
|
20
|
-40
|
| Percent change |
-8.3
|
20.0
|
-40.0
|
| Results in 1H FY 2005 |
816
|
39
|
23
|
3. Main reasons for revising earnings forecasts
We are raising our forecast of consolidated net sales by ¥5.5 billion as a result of firm sales of mainstay products in the domestic market and strong sales of the antihypertensive drug Benicar ® in the US market. We are raising our forecasts of consolidated operating income by ¥13 billion and consolidated ordinary income by ¥16 billion as a result of progress in streamlining selling, general and administrative expenses. Additionally, we are raising our forecast of consolidated net income by ¥20.5 billion due to a reduction in the corporate tax rate resulting from tax effects derived from the anticipated elimination of accumulated losses at overseas subsidiaries.
The revisions of our non-consolidated earnings forecasts will be eliminated in consolidation due to the pure holding company and will have virtually no impact on consolidated earnings.
We are currently reviewing our consolidated and non-consolidated earnings forecasts for FY 2006 and plan to announce any revisions along with 1H FY 2006 results on November 6, 2006.
Note: The foregoing forecasts are based on information available at the time of this announcement. Actual results may differ due to a variety of factors.
End