OMRON Announces Adjustment to Fiscal 2008 Consolidated Performance Forecast


Company Name: OMRON Corporation
Representative: President & CEO
Hisao Sakuta
Stock ticker number: 6645
Stock exchanges: Tokyo, Osaka, Nagoya
(First Sections)
Contact: Hideo Higuchi, Senior General Manager
Corporate Strategic Planning Headquarters
Phone: +81-75-344-7175

Tokyo, Japan - OMRON Corporation (TSE: 6645; ADR: OMRNY) today announced an adjustment to its consolidated performance forecast for fiscal 2008 (April 1, 2008 - March 31, 2009), which was announced on January 29, 2009. Details are as follows.

  1. Adjustment to FY08 Consolidated Results Forecast (April 1, 2008 - March 31, 2009)
    (Millions of yen)
      Sales Operating income Net income
    before income taxes
    Net income
    Previous forecast (A)
    (Announced on January 29, 2009)
    635,000 7,000 2,000 1,000
    Revised forecast (B) 627,000 5,000 (39,000) (29,000)
    Difference (B-A) (8,000) (2,000) (41,000) (30,000)
    Difference (%) (1.3%) (28.6%) - -
    FY07 actual
    (ended March 31, 2008)
    762,985 65,253 64,166 42,383
    Year-on-year difference (%) (17.8%) (92.3%) - -

  2. Reasons for Adjustment

    The business environment surrounding the OMRON Group has further worsened since our previous forecast announcement due to the effects of the global financial crisis and ensuing recession. Conditions in the control equipment and electronic components businesses (including automotive electronics) were even worse than expected as market conditions deteriorated.

    In addition, OMRON accounted for the impairment of goodwill and fixed assets in order to accelerate the business structure reform it began in February 2009 with the aim of strengthening its revenue base while at the same time working to ensure sound management and fair valuation of assets. As a result, the Company now predicts additional non-operating losses of approximately 39.0 billion yen and has adjusted its consolidated performance forecast for fiscal 2008 accordingly.

    Going forward, the OMRON Group will continue to implement emergency (crisis response) measures and business structure reform, with employees working together as one to ensure swift improvement in business performance.

    Breakdown of Newly Anticipated Non-Operating Losses
    1) Impairment of goodwill 16.6 billion yen
    2) Impairment of fixed assets 20.9 billion yen
    3) Additional impairment of investment securities 2.2 billion yen

Note: The above forecast is based on information available to the Company at the time of this announcement. Actual results may differ materially from the forecast due to various factors.


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