Oki Electric Industry Co., the Japanese maker of cash dispensers and communications equipment, plunged in Tokyo trading after forecasting a loss on retirement costs and currency fluctuations.
Oki Electric forecast a net loss of 28 billion yen ($342 million) for the year ending March 31, compared with a previous estimate of a 4.5 billion yen profit and net income of 3.62 billion yen a year earlier. The company, in a statement to the exchange on Oct. 8, maintained its full-year operating profit forecast and revenue target of 450 billion yen.
The Tokyo-based company also plans to sell 30 billion yen of preferred shares to Mizuho Corporate Bank Ltd. and 13 other companies, according to a filing to Japan’s finance ministry.
Oki Electric will book a 22 billion yen charge to pay for retirement benefits and 7 billion yen for job cuts. The company also cut its current profit forecast by 2.5 billion yen to reflect costs to issue preferred shares and for currency fluctuations.
Mitsubishi UFJ Morgan Stanley analyst Masahiko Ishino today lowered his rating on Oki Electric to “underperform” from “neutral,” a rating he had maintained since Sept. 21. Ishino also cut the company’s 12-month share price estimate to 53 yen from 70 yen.
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