Sumitomo Corp. To Report Huge Loss
Apr. 02, 1999
TOKYO (AP) _ Japan's Sumitomo Corp., a major trading company, expects to report a loss of 23 billion yen, or $192 million, for its recently-completed fiscal year due to 125 billion yen in one-time charges.
The revised forecast was a big change from the company's previous estimate that it would earn 16 billion yen, or $133 million, for the year that ended Wednesday.
Sumitomo, an importer and exporter of steel, chemicals and a wide range of other goods, is stepping up its efforts to get rid of risky assets and focus only on its most profitable businesses, the company said.
Sumitomo will set aside 70 billion yen, or $583 million, to cover losses it expects to incur from shutting or selling unprofitable operations.
The company will also set aside 25 billion yen, or $208 million, for bad loans to Southeast Asia, and 7 billion yen, or $58 million, for early-retirement packages for about 150 employees.
Sumitomo also said it would post a one-time loss of 23 billion yen, or $192 million, for bad securities investments.
To cover some of the charges, Sumitomo will sell real estate in Osaka to Sumitomo Life Insurance Co. for 20 billion yen, or $167 million.