Jun 8, 2010
Shiseido cuts forecast by 5 percent on acquisition costs
Jun 8, 2010
TOKYO June 8 (Reuters) - Shiseido Co Ltd (4911.T), Japan's largest cosmetics firm, on Tuesday 8 June cut its annual operating profit forecast by about 5 percent to reflect costs related to its acquisition of U.S. firm Bare Escentuals.
Shiseido bought the U.S. cosmetics company in March for $1.7 billion as part of an effort to expand overseas, but the firm's forecast for this financial year issued in April did not factor in the acquisition.
The maker of "Tsubaki" shampoo and the "Maquillage" line of makeup now expects an operating profit of 50.5 billion yen ($552 million) for the year ending in March 2011, down from 53 billion yen in its previous forecast.
The figure is below a mean estimate of 57.1 billion yen in a poll of 11 analysts by Thomson Reuters I/B/E/S.
Shiseido said the downward revision came as it plans to book some costs in connection with the acquisition, including 4 billion yen in goodwill amortisation.
Shares of Shiseido were up 2.6 percent at 1,802 yen, outperforming a 0.4 percent gain in the Nikkei average .N225. ($1=91.47 Yen) (Reporting by Taiga Uranaka; Editing by Chris Gallagher)
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