Japanese processor reports loss

- Last updated on GMT

Related tags: Generally accepted accounting principles

Japanese food processor Marudai Food Co. said this week that it is
likely to record a group net loss of 20.7 billion yen (US$ 165.8
million) for the 2000...

Japanese food processor Marudai Food Co. said this week that it is likely to record a group net loss of 20.7 billion yen (US$ 165.8 million) for the 2000 fiscal year, more than the 16.5 billion yen loss forecast earlier. Slack demand has led to price-cutting and a squeeze in gross margins that has affected the company's operating profitability. Marudai's pension obligations rose due to low returns on asset management. Marudai Food experienced a sudden rush of applicants for its early retirement program, raising its retirement payout costs to 1.4 billion yen, which was 1.1 billion yen more than earlier projected. The company also took a 750 million yen loss from investment in its restaurant operator subsidiary. Consolidated revenues have fallen 2 per cent to 234 billion yen due to weak sales of ham, sausage and prepared foods. The parent company's gross profit margin declined by 0.8 of a percentage point. Ham and sausage products accounted for 31 per cent of fiscal 2000 revenues; processed foods, 38 per cent and fresh meat & other, 31 per cent. Source: Nikkei

Related topics: Market Trends

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