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JAPAN'S SHISEIDO EXPECTS US$318 MLN GROUP EXTRAORDINARY LOSS.

AsiaPulse News

| October 01, 2001 | COPYRIGHT 2001 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

TOKYO, Oct 1 Asia Pulse - Shiseido Co. (TSE:4911) said Friday it expects a consolidated extraordinary loss of 38 billion yen (US$318 million) for its fiscal year ending March 31, 2002.

Under a revamped labeling law, the company will be required to dispose of its products that do not have all the ingredients displayed on the label, which will cost the company 26.5 billion yen.

As a result, the original forecast of 10 billion yen in net profit was revised downward to an expected net loss of 9 billion yen, which will put the company in the red for the second consecutive year.

Enforcement of the new law has been postponed until September 2002, but the company received "nearly 150 inquiries from consumers, and Shiseido decided to make their interests a priority," according to Takeshi Ohori, a director at the firm.

Products without all the ingredients on the label account for about 20 per cent of all inventory.

...

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Source: HighBeam Research, JAPAN'S SHISEIDO EXPECTS US$318 MLN GROUP EXTRAORDINARY LOSS.

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