Capcom Lowers End Of Year Expectations News
Chris Leyton
31/03/2006
Tax assessment and lower then expected sales leads to Japanese publisher cutting net income and profit forecast...
Capcom today revised its forecast for the fiscal year ending March 31st 2006, lowering expectations which were previously made on November 21st 2005.
The Japanese publisher now expects consolidated ordinary income to stand at 6.4 billion yen (£31.3 million) as opposed to earlier predictions of 7.4 billion yen (£36.2 million). As a result consolidated net income has been dropped from 8.9 billion yen (£43.5 million) to 6.5 billion yen (£31.8 million).
Capcom attributes the reason behind the revision as being a tax assessment based on transfer pricing adjustments from the Osaka Regional Tax Bureau, for the five year business from March 2000 through to March 2005. Due to the notice of the tax assessment, income taxes of the fiscal year ending March 2006 will increase, affecting the publisher's net income.
Capcom further addressed lower then expected profit projections due to poor performance of the North American videogame industry, along with weak sales of a number of titles throughout Europe.