Dentsu Cuts Earnings Outlook for 2019

Economy

Tokyo, Dec. 16 (Jiji Press)--Japanese advertising giant Dentsu Inc. <4324> lowered Monday its consolidated sales, operating profit and net profit forecasts for the fiscal year ending this month, citing adverse business conditions for its overseas operations.

The company set its revised sales outlook at 1,034,800 million yen, down from 1,054,400 million yen announced in August. It lowered its operating profit estimate from 98,500 million yen to 60,900 million yen, and its net profit forecast from 35,800 million yen to 6,200 million yen.

The downward revision was accompanied by a major restructuring plan, including a workforce reductions for operations located in Australia, Brazil, China, France, Germany, Singapore and Britain, totaling some 11 pct, or roughly 1,400 people. Dentsu will also rationalize assets such as real estate.

The restructuring plan is expected to cost about 24.8 billion yen, of which 19.8 billion yen will be booked in the fiscal 2019 accounts.

More than 100 million pounds, or 13.8 billion yen, in staff-related costs is expected to be saved on an annual basis, the company said.

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Jiji Press