Ajinomoto reports major sales decrease

11/11/05 Ajinomoto Co., Inc. has announced results for the interim period ended September 30, 2005. Net sales were 542.3 billion yen (a 1% decrease from the same period in the previous year), operating income was 21.7 billion yen (a 40% decrease), ordinary income was 22.8 billion yen (a 39% decrease) and net income was 12.9 billion yen (a 41% decrease).　

Sales in the Domestic Food Products business increased slightly compared with the same period of the previous year due to the effects of the “AjiPanda” campaign and other factors for umami seasoning AJI-NO-MOTO, strong sales of Pure Select Saralear mayonnaise-type dressing, and solid sales of soups and Cook Do. Operating income was firm, despite the impact of higher prices for certain raw materials, due to progress in cost reduction.　

In the Overseas Food Products business, sales increased compared with the same period of the previous year, with growth in both AJI-NO-MOTO and flavor seasonings, but income decreased significantly due to higher raw material costs for AJI-NO-MOTO and other factors.　

In the Amino Acids business, although specialty chemical products sold well, lower selling prices for Lysine, a feed-use amino acid, had a substantial impact. As a result, sales fell and income decreased significantly compared with the same period of the previous year.　

In the Pharmaceuticals business, LIVACT Granules and infusions faced difficult conditions, but the contribution of drugs for lifestyle-related diseases helped to secure sales equivalent to the same period in the previous year, while operating income decreased slightly.　

For the fiscal year ending March 31, 2006, Ajinomoto forecasts consolidated net sales of 1,100 billion yen, operating income of 61 billion yen, ordinary income of 61 billion yen, and net income of 36 billion yen. These forecasts assume a U.S. dollar/yen exchange rate of 110 yen. Ajinomoto plans to pay a year-end dividend of 7 yen per share, an increase of 1 yen from the previous fiscal year. Together with the interim dividend, a total dividend payment for the full fiscal year will amount to 14 yen per share.