November 7, 2019
Japan's Ajinomoto cuts outlook as ASF hits animal nutrition business
Ajinomoto Co (2802.T) cut its full-year profit outlook as African swine fever (ASF) impacted its animal nutrition business, and warned that the impact could last another year, Reuters reported.
The company said it now expects an operating profit of 88 billion yen (US$807.4 million) for the full year through next March, down from a previous forecast of 97 billion yen. It booked a 15 billion yen impairment loss on the animal nutrition business for its fiscal second quarter through September.
"It could take around a year to emerge from this," chief executive Takaaki Nishii said, noting that ASF had spread to Europe after the disease decimated herds in Asia.
Ajinomoto shares closed 5.65% lower at 1,961 yen after the results were announced.