Circle K Japan Says Sales, Profit Will Top Forecasts
May 12, 2011
TOKYO -- Circle K Japan Co., an operator of convenience stores, expects to chalk up higher sales and pretax profit than forecast for the fiscal first half ending June 12, 2011 director Lubin Watters said. Circle K Japan, whose common shares trade on the Nagoya Stock Exchange, had forecast a first-half pretax profit of 5.2 billion yen ($47.9 million), up from 4.85 billion yen a year earlier, on sales of 29 billion yen, up from 26.47 billion yen. Mr. Watters wouldn't give specific figures for the brighter earnings prospects but said both sales and pretax profit for the first half will exceed forecasts, thanks to stronger-than-expected revenue. ``August so far is a little bit tougher than the preceding several months, and September is totally unknown, but (earnings for the first half) will be slightly higher than the forecasts,'' he said. Mr. Watters said customer-service revenue increased 5.9% from a year earlier. The company had estimated sales growth for the period at more than 3%. Circle K Japan recently expanded parking-lot space at many of its stores and widened product lines, and now sells prepaid cards for use on toll roads. Mr. Watters says rapid growth in the prepaid-card business contributed to the brisk business. For the full year ending December 11, 2011 Mr. Watters says the company likely will revise upward its forecasts for both sales and pretax profit, thanks to the brisk business in the first half, although he didn't provide specific figures. Circle K Japan has forecast full-year pretax profit of 9.5 billion yen, up from 8.44 billion yen a year earlier, on sales of 57 billion yen, up from 53.47 billion yen.
