Nichirei is one of may companies suffering from the effects of the earthquake, tsunami and subsequent nuclear disaster. (Photo: GPLv3)

Nichirei posts losses of USD 38.6 mln due to quake

Marine products and processed foods company Nichirei Corporation this week issued a statement announcing extraordinary losses of JPY 3,196 million (USD 38.6 million) posted in association with the 11 March earthquake and tsunami.

The company has also revised its full-year consolidated results forecast for the fiscal year ended 31 March 2011 previously revealed on 21 December 2010. 

The company communicated that its losses consist of certain fixed assets at JPY 2,007 million (USD 24.2 million), inventories at JPY 523 million (USD 6.3 million) and other assets at JPY 665 million (USD 8 million). The posted damages include estimates.

Nichirei’s revision of the full-year consolidated results forecast dated 1 April 2010 through 31 March 2011 showed a previous forecast of net sales of JPY 435,200 million (USD 5.25 billion) and a revised forecast of JPY 437,800 million (USD 5.29 million) - a change of JPY 2,600 million (USD 31.4 million) or 0.6 per cent. Results for the previous fiscal year ended 31 March 2010 were net sales of JPY 438,111 million (USD 5.29 billion).

Its net income shifted from a previous forecast of JPY 6,300 million (USD 76.1 million) to a revised forecast of JPY 4,000 million (USD 48.3 million), a change of JPY 2,300 million (USD 27.8 million) or 36.5 per cent. Results for the previous fiscal year ended 31 March 2010 consisted of a net income of JPY 9,064 million (USD 109.4 million).

The company’s processed foods division, made up of Nichirei Foods Inc and Chiba Chikusan Kogyo Inc, saw damages at its factories in Shiroishi, Yamagata and Funabashi. 

At its Shiroishi production plants for frozen foods in Shiroishi-shi, Miyagi Prefecture, the machinery was “partially damaged;” a test run resumed on 4 April and production resumed on 11 April. In the Yamagata plant in Tendoushi, Yamagata Prefecture, the water receiving and water storage tanks were hit and its piping cracked, but operations have since resumed.

In terms of its marine products division, made up of Maruichikakou Corporation, its Kesennuma and Onahama factories were harmed by last month’s natural disaster. 

At the Kesennuma factory, located in Kesennuma-shi, Miyagi Prefecture, there was “water immersion at the office and factory” and the company believes “a recovery is likely to take a considerable period of time,” Nichirei said earlier this month.

Its Onahama production plant for marine products in Iwaki-shi, Fukushima Prefecture, suffered the same consequences; the firm said its “restoration process continues” and recovery is expected to take a long time as well.

Its meat and poultry products division as well as distribution centres were also devastated by the quake and tsunami.

Nichirei Foods was established in 1945 and employs 6,577 workers. It develops, manufactures and sells frozen food products and other processed foods.

By Natalia Real
editorial@seafood.media
www.seafood.media

Address:	6-19-20 Tsukiji, Chuo-ku
City:	Tokyo
State/ZIP:	(104-8402)
Country:	Japan
Phone:	+81 3 3248 2235
Fax:	+81 3 3248 2159
E-Mail:	info@nichirei.co.jp
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