These write-downs served to reduce fourth quarter diluted earnings per share by $8.21. Including these write-downs the company reported a loss for the fourth quarter ended November 30, 2007 of $6.90 per share compared to profit of $4.00.

The net loss for the fourth quarter of 2007 was $854 million as compared with net income of $563 million for the fourth quarter of 2006. Net revenues for the 2007 fourth quarter were a loss of $379 million down from revenues of $2.4 billion for the 2006 fourth quarter.

For the fiscal year the company reported $1.52 diluted earnings per share, compared with $14.27 for fiscal 2006. Net income for the fiscal year was $233 million compared with $2.1 billion earned in fiscal year ended November 30, 2006.

Net revenues for the 2007 fiscal year were $5.9 billion, compared with $9.2 billion in the prior fiscal year. The after-tax return on common stockholders’ equity was 1.8% for fiscal 2007.


[R]5:00AM New York, 7:00PM Tokyo - Japan’s exports falls to 9.7% in November. Bank of Japan keeps borrowing rate at 0.5%.[/R]

Stock averages in Japan rose for the first time in seven days as financial stocks edged higher on reports that the country’s three biggest lenders would reject a request to contribute about $15 billion to the subprime asset bailout fund.

In Tokyo trading Nikkei 225 declined from the peak of 0.7% gain by mid-day to close up 0.01% or 1.09 to 15,031.60, while the broader Topix Index firmed 0.77 to 1,457.56.

In the first section of the Tokyo Stock Exchange 7.9 billion shares valued at 927 billion yen were traded and 367 million shares worth 11 billion yen were traded in the second section.

Of the Nikkei 225 stocks 93 gained, 123 declined, and 9 were unchanged.

Sumitomo Metal Industries led risers with a gain of 4.68% on reports that the company and its competitors will increase their shareholding in each other.

Japan’s Ministry of Finance reported today that exports rose 9.7% in November below the 10.5% forecasted by economists. Imports also rose 13.2% in November compared to 8.6% in October, prompting surplus to decline 12.2% to 797.4 billion yen.

Shipments to the U.S. fell for the third month to 6% compared to 1.5% in October, while exports to China grew at the slowest pace since February to 13.7%. Similarly, shipments to the EU rose the slowest since April 2006 to record a 8.2% gain.

Separately, the Ministry of Finance said that Japan’s expenditure will increase 0.2% to 83.1 trillion yen in them fiscal year starting in April. About 25.3 trillion yen of new debt would be sold to fund the widening deficit.

However the proposed general account budget is 0.2% bigger than the fiscal 2007 budget due to increases in social security tax and local tax grants.

Japan plans to cut public works spending by 3.1% to 6.7 trillion yen, defense by 0.5% to 4.8 trillion yen and foreign aid by 4% to 700.2 billion yen. But social security costs would increase by 3% to 27.8 trillion yen.

It is estimated that debt at central and local governments would reach 776 trillion yen by March 2009, which translates to 147.2% of GDP. Furthermore tax gains and subsidies to local government would also increase by 4.6% next year.

According to the finance ministry, tax revenue is projected to slow by 0.2% to 53.6 trillion yen next year compared to the gain of 16.5% realised in the current fiscal year.

A supplementary 895.4 billion yen is proposed for the current fiscal year. The budget would be approved by Cabinet on December 24th and submitted to parliament in January.

The Bank of Japan today unanimously elected to keep the key interest rate at 0.5% as the Atsushi Mizuno, the lone dissenter in the previous meetings, also joined in to support to hold the rate as business conditions continue to deteriorate.