Koyo Seiko Company (Osaka, Japan) is now advising it expects only to break
even in the current fiscal year, ending March 31, 2002.
The company had originally forecast profits of ¥4.5 billion
($37.8 million) on slightly improved sales of ¥406 billion
($3.4 billion). In the past fiscal year, Koyo lost ¥12.1 billion
($101.6 million)
Koyo estimates sales for the first half, through September 30, 2001, were
¥204 billion ($1.6 million), producing profits of ¥3 billion
($25.2 million).
A number of factors are being blamed for the profit slump: sharp drops in the
sale of ball bearings
for computer disk drives and cooling fans, continued softening in the automotive
OEM and aftermarket, lower plant capacity utilization, and increased
price competition in the electric power steering market.
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