Integrated financial services group Orix Corp. (IX) Monday reported a loss for the third quarter largely due to equity losses in its affiliates, valuation losses on its securities portfolio, and write-downs.
Net loss for the three months was 41.9 billion yen or US$461 million, compared to profit of 28.9 billion yen in the prior year period. Operating loss for the period was 4.7 billion yen or US$52 million, versus last year's profit of 41.7 billion yen.
Total revenues for the quarter fell to 247.4 billion yen or USD 2.72 billion, from 272 billion yen a year ago.
For the first nine months, net income was 13.3 billion yen or 146.59 yen per share, down 89% year-on-year from last year's 120.9 billion yen. Total revenues were down 4% to 800 billion yen from 835.1 billion yen. In USD, net income was $146 million on revenues of $8.8 million.
The Tokyo based company noted that with its equity-method affiliates, Daikyo, Fuji Fire and Marine, now experiencing deterioration in their operating results along with write-down recognitions due to the negative trends in the stock prices, it has cut its full-year 2008 outlook.
For the fiscal year, Orix now anticipates earnings of 15 billion yen, down from its November forecast of 105 billion yen. Consolidated revenues for the year is now expected to be 1.075 trillion yen, also down from its prior guidance of 1.12 trillion yen.
In addition, the group said it intends to undertake cost reduction programs, and aim for an organic recovery with a
targeted "income before income tax" in the range of 50 billion yen - 60 billion yen for the coming fiscal year.
Currently, the stock is down $1.53, trading at $19.91 on the NYQ.
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