Taiheiyo Cement seen missing FY08 profit target

Analysts’ net profit projection for Taiheiyo Cement Corp for the current fiscal year is 64% lower than the firm’s own projection, the largest discrepancy among firms in a Nikkei study.

Taiheiyo Cement predicts that net profit will fall 51% on the year to 10 billion yen in fiscal 2008. But analysts project a drop of more than 80% to 3.6 billion yen on a continued slump in demand for condominiums in Japan due to tougher building standards and an economic slowdown. Weak housing demand in North America was also seen as a factor.

The study covered firms listed on the first section of the Tokyo Stock Exchange for which at least five analysts made earnings forecasts for fiscal 2008. The firms were ranked based on the discrepancy between the analyst forecast and the company’s own projection, excluding those for which comparisons were not possible, such as for companies expected to record a loss.