February 2, 2009

Nippon Suisan Kaisha Ltd. operating profit for the year through March 31 will likely fall 3 percent from a year earlier to around 7 billion yen, well shy of the company's projection of a 24 percent increase to 9 billion yen.

The firm's domestic seafood operations are seen underperforming due to weak consumption and higher materials prices will likely weigh on its domestic food business; large extraordinary losses are expected.

As a result, the major seafood company will probably record its first net loss in seven years.

Sales appear to be on target, with a likely outcome of a 3 percent fall to about 520 billion yen.

Two affiliates no longer contribute to consolidated sales following a group reorganisation at the end of fiscal 2007, but the negative effects of this change are expected to be offset by product price hikes since autumn and strong sales of processed fish-based foods.

US$1 = JPY89.9 (Feb 1)