Notice Concerning Valuation Loss on Investment Securities for the Second Quarter of Fiscal 2011
2011.09.30
- Sumitomo Metal Industries, Ltd.
In the second quarter of fiscal 2011, ending March 31, 2012, Sumitomo Metal Industries, Ltd. (Sumitomo Metals) will post losses on the impairment of investment securities for which market values have fallen significantly below book-value amounts. The details are summarized below.
1. Total amount of loss on valuation of investment securities for the first half of fiscal 2011, ending March 31, 2012
(Millions of yen) |
| Consolidated basis | ||
Total amount of loss on valuation of investment securities booked in the second half of fiscal 2011 (July 1 to September 30, 2011) (a-b) |
79,761 | |
(A) Total amount of loss on valuation of investment securities booked in the first half of fiscal 2011 (April 1 to September 30, 2011) |
79,761 | |
| (B) Total amount of loss on valuation of investment securities booked in the first quarter of fiscal 2011 (April 1 to June 30, 2011) | - | |
Notes:
･The Company reassesses losses on valuation of investment securities at the end of each fiscal quarter based on previous year-end book values.
･The Company’s fiscal year ends on March 31.
･The amount of loss on valuation of investment securities is expected to be recorded as an extraordinary loss.
(Reference)
The impact of the loss on valuation is estimated to reduce net assets by approximately 8 billion yen as described below.
(Billions of yen) |
| Approximate amounts Consolidated basis | ||
Extraordinary loss Corporate taxes and other |
-79.7 32.0 |
|
| (a) Impact on net income | -48.0 | |
| (b) Net unrealized valuation gain on other investment securities | 40.0 | |
| Impact on net assets (a+b) | -8.0 | |
2. Earnings forecasts for the first half and full year of fiscal 2011, ending March 31, 2012, are currently under examination. They will be disclosed when it becomes possible to do so.
Reference : Information on our press release of September 30 regarding valuation loss on investment securities for the second quarter of fiscal 2011
