Otsuka Kagu Braced for 3rd Annual Net Loss

Economy

Tokyo, Aug. 8 (Jiji Press)--Japanese furniture retailer Otsuka Kagu Ltd. <8186> has said it is braced for a third straight annual net loss this year.

Otsuka Kagu now expects a net loss of 3,426 million yen, a sharp deterioration from the previous estimate of 1.39 billion yen in profit, according to its new earnings projections released Tuesday.

The sales estimate was slashed to 37.6 billion yen from 45.6 billion yen. The operating balance is projected at 5.1 billion yen in loss, against the previous estimate of 200 million yen in profit.

The bleak outlooks may affect the course of business reconstruction at the beleaguered company. It is considering some options, including capital reinforcement and a boost to its business and capital alliance with meeting room rental service company TKP Corp. <3479>.

Otsuka Kagu suffers from sluggish sales particularly at large outlets.

[Copyright The Jiji Press, Ltd.]

Jiji Press