KDDI Corp., the nation's second-largest telecommunications carrier, on Friday downwardly revised its earnings projection for the year that ends March 31.

The revision reflects special losses stemming from restructuring operations involving its au brand mobile phone services, the company said.

KDDI expects to post a consolidated net profit of 6 billion yen, a sharp drop from the 63 billion yen net profit it projected in November.

Its consolidated pretax profit is estimated at 73 billion yen, up 3 billion yen, on revenues of 2.85 trillion yen, down from the initially projected 2.94 trillion yen.

The carrier attributed the expected rise in pretax profit to falls in sales promotion costs.

On an unconsolidated basis, the carrier expects to post a net loss of 20 billion yen, compared with the initial projection of 48 billion yen in net profit.

KDDI said it expects to log a parent-only special loss of 229 billion yen for carrying out drastic structural reforms of mobile phone services, including removal of Personal Digital Cellular network equipment and handset inventories.

The shrinking popularity of PDC, a proprietary standard used only in Japan, has been affecting the carrier's overall subscription figures.

Its unconsolidated pretax profit is expected to be 50 billion yen, up 9 billion yen, on revenues of 1.86 trillion yen, down 90 billion yen.

In another move, KDDI announced a mid-term business strategy that it hopes will allow it to post a consolidated pretax profit of 270 billion yen on revenues of 3.2 trillion yen in 2004.

Under the plan, the company also targets group capital investment of 310 billion yen in the year that ends March 2005, down from the estimated 408 billion yen for the current business year.