Nippon Denko to Post Non-operating Expense and Extraordinary Loss

  • Sunday, February 14, 2016
  • Source:ferro-alloys.com

  • Keywords:ferroalloy
[Fellow]On February 2, Nippon Denko Co., Ltd. announced that it will post a non-operating expense and an extraordinary loss and make a downward adjustment on its anticipated business results before releasing its consolidated business results in the fiscal year 2015.
On February 2, Nippon Denko Co., Ltd. announced that it will post a non-operating expense and an extraordinary loss and make a downward adjustment on its anticipated business results before releasing its consolidated business results in the fiscal year 2015.

As to the non-operating expense, the Company will post JPY1.494 billion for an investment loss calculated by equity interest based on the investment ratio (25%) in Kudumane Manganese Resources Ltd. (KMR), South Africa, which is a booking of impairment loss on the debased mining license retained indirectly which stemmed from the review made on the future business plan for KMR in consideration of the current business results continuing to dip below the planned figure initially drawn up in addition to the slumping manganese ore market.

Such 3 extraordinary losses are posted as:

(1)The extraordinary loss of JPY1.058 billion is posted for business disposal because its consolidated subsidiary, Chuo Denki Kogyo Co., Ltd. (management was integrated in July 2014) divided the production and sales divisions for ferro alloy for neodymium permanent magnet at the Company's Wakayama Works, and assigned the shares to Santoku Corporation and Sojitz Corporation on February 1.

(2)Likewise, the extraordinary loss of JPY1.641 billion is posted as a business disposal loss for suspension of it consolidated subsidiary, Vietnam Rare Earth Company Limited.

(3)As a result of the review on the future business plan in consideration of the changes of the market and business environment, the extraordinary loss of JPY9.272 billion is posted for the tangible fixed assets related to the ferroalloy business at Tokushima Works and the battery materials business at Hokuriku Works.

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  • [Editor:Sophie]

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