Takefuji Corp. said Thursday its consolidated net profits in the first half of the 2001 business year rose 9.9 percent from a year earlier to 66.19 billion yen.
The Tokyo-based consumer credit firm said its trade expanded in spite of the economic gloom enveloping Japan.
Takefuji's group pretax profits edged up 2.7 percent to 123.53 billion yen during the six-month period through Sept. 30. These profits were generated on operating revenues of 211.62 billion yen, up 8.6 percent.
Although the economy deteriorated further during the first half, demand for collateral-free, small-lot loans remained strong in the domestic consumer credit market, the firm said.
Takefuji also announced plans to establish a new subsidiary at the end of this year that will take over its operations, excluding its main consumer-credit business.
The new Tokyo-based firm will be named TDS. Co.
Takefuji will transfer to TDS in late March some land lots in Kyoto measuring about 220,000 sq. meters that are now rented for parking.
The transfer will boost efficiency as it will allow Takefuji to concentrate on consumer credit, it said.
Because of the land transfer, Takefuji said it will book an extraordinary loss of 96 billion yen for the full year through March 31, undercutting its May earnings projections.
The company now expects to post group net profits of 75.2 billion yen and group pretax profits of 242.4 billion yen for the full year, down from previous estimates of 144.14 billion yen and 264.4 billion yen.
However, it is retaining its operating revenues estimate of 431.1 billion yen, up 7.2 percent from that logged in the previous year.
Takefuji said it will not change its dividend payment plan of 100 yen per share for the full year.