Japan Tobacco Raises Projections

Source from:  Aug. 10, 2007 search.japantimes.co.jp Kyodo News 08/10/2007

Japan Tobacco Inc. raised its business 2007 group earnings projection Thursday to account for the acquisition of British tobacco company Gallaher Group PLC. JT now expects to post a group net profit of 256 billion yen and an operating profit of 419 billion yen for the year through March 31, compared with the 186 billion yen and 312 billion yen, respectively, projected in April. Sales are expected to jump 31.1 percent to 6.41 trillion yen. In April, JT turned Gallaher, maker of the Benson & Hedges and Silk Cut brands, into a wholly owned subsidiary for 2.25 trillion yen - the largest corporate acquisition ever made by a Japanese company. JT's initial earnings projections for 2007, released April 27, did not take into account the integration of Gallaher's business. JT, owned 50 percent by the government, said that about 8 1/2 months of the British company's operations are reflected in the latest earnings forecast. Enditem