Taiheiyo Cement Corp said that it will suffer a ¥28bn group net loss for the year ending March 31, deeper than the ¥7bn loss it had previously projected and a far cry from its ¥20.4bn profit in fiscal 2007.
Its core cement business has been struggling amid the economic downturn. In addition, earnings have been slumping at a South Korean affiliate, whose performance is reflected in Taiheiyo Cement’s consolidated results based on the proportion of ownership. Sales are expected to fall five per cent to ¥880bn, undershooting its earlier forecast by ¥30bn.
Taiheiyo Cement has lowered its fiscal 2008 domestic cement demand outlook from 52Mt to 50.5Mt, down 10 per cent on the year, mainly due to fewer construction projects.
The firm expects operating profit to plunge 83 per cent to ¥9bn, falling short of its prior target by ¥9bn. Earnings are falling at the largest South Korean cement firm, Ssangyong Cement Industrial Co, which is 32.3 per cent owned by Taiheiyo Cement, causing the Japanese firm to lose nearly ¥6bn.