Freak of Kane
04-01-2004, 05:19 AM
Yen's rise worsens Nintendo earnings outlook
Nintendo, the Japanese video-game maker, on Thursday revised down its earnings guidance for the year ending March 31, citing higher-than-expected foreign exchange losses due to the yen's continued strength against the dollar.
The maker of the GameCube console and Game Boy handheld players said a one-time loss of Y69bn due to adverse currency fluctuations would push full-year earnings down to Y33bn from the previously announced Y60bn, compared with net profits of Y67.3bn for fiscal 2002.
Nintendo had an assumed the yen would stay at Y114 against the dollar in the last fiscal quarter of 2003. The dollar dropped to Y104.15 on Thursday.
Although the rising yen was blamed for Nintendo's cut in its earnings forecast, the company had warned in January that sluggish sales of its video-game consoles in Japan would make it difficult to achieve its full-year sales and profits targets.
It forecast sales of GameCube to fall short of its original forecast of 6m units by as much as 1m, while sales of Game Boy Advance were expected to fall 2m units short of the forecast 20m.
At that time Nintendo lowered its sales forecast to Y510bn from Y550bn and its operating profit forecast to Y105bn from Y115bn.
The company on Thursday kept those targets unchanged. It also forecast earnings would rise to Y530bn and operating profits would increase to Y110bn in the current fiscal year if the yen stayed at Y105 to the dollar.
Nintendo reported its first ever interim loss of Y2.9bn in November, which it attributed to the strengthening of the yen against the dollar and sagging GameCube sales.
Bad news. I hope the Yen gets weaker...REAL QUICK. BTW, no, this isn't an April Fool's joke...it's real (would be stupid to do one like this?) - it's from http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079420081962 (Financial Times)
If you check out http://www.totalvideogames.com/pages/articles/index.php?article_id=5520 - be prepared to see a badly pulled off April Fool's joke ;) Also, even worse is the one at http://itvibe.com/default.aspx?NewsID=2442 - not to mention a very crap one at http://www.gcadvanced.com :p
Nintendo, the Japanese video-game maker, on Thursday revised down its earnings guidance for the year ending March 31, citing higher-than-expected foreign exchange losses due to the yen's continued strength against the dollar.
The maker of the GameCube console and Game Boy handheld players said a one-time loss of Y69bn due to adverse currency fluctuations would push full-year earnings down to Y33bn from the previously announced Y60bn, compared with net profits of Y67.3bn for fiscal 2002.
Nintendo had an assumed the yen would stay at Y114 against the dollar in the last fiscal quarter of 2003. The dollar dropped to Y104.15 on Thursday.
Although the rising yen was blamed for Nintendo's cut in its earnings forecast, the company had warned in January that sluggish sales of its video-game consoles in Japan would make it difficult to achieve its full-year sales and profits targets.
It forecast sales of GameCube to fall short of its original forecast of 6m units by as much as 1m, while sales of Game Boy Advance were expected to fall 2m units short of the forecast 20m.
At that time Nintendo lowered its sales forecast to Y510bn from Y550bn and its operating profit forecast to Y105bn from Y115bn.
The company on Thursday kept those targets unchanged. It also forecast earnings would rise to Y530bn and operating profits would increase to Y110bn in the current fiscal year if the yen stayed at Y105 to the dollar.
Nintendo reported its first ever interim loss of Y2.9bn in November, which it attributed to the strengthening of the yen against the dollar and sagging GameCube sales.
Bad news. I hope the Yen gets weaker...REAL QUICK. BTW, no, this isn't an April Fool's joke...it's real (would be stupid to do one like this?) - it's from http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079420081962 (Financial Times)
If you check out http://www.totalvideogames.com/pages/articles/index.php?article_id=5520 - be prepared to see a badly pulled off April Fool's joke ;) Also, even worse is the one at http://itvibe.com/default.aspx?NewsID=2442 - not to mention a very crap one at http://www.gcadvanced.com :p