May 13, 2014 12:33 am JST

Nichii Gakkan's fiscal 2013 profit seen down 28%

TOKYO -- Nichii Gakkan's operating profit apparently tumbled 28% last fiscal year to around 6.3 billion yen ($61.1 million), falling short of the 6.6 billion yen guidance.

     Sales likely edged up 2% to a little more than 270 billion yen. The Japanese company's core long-term care segment enjoyed an increase in users thanks to new residential facilities such as nursing homes. The home care business was brisk as well. Major contracts in the medical support segment, which includes administrative outsourcing at hospitals, also contributed to earnings.

     But losses widened in the education business. The Coco Juku chain of English schools probably did not meet its goal of 6,000 students by the end of March. The popularity of training courses for caregivers also flagged after a prior surge in demand sparked by a regulatory change.

     The company will likely secure an operating profit increase this fiscal year thanks to customer growth in the education business.

(Nikkei)