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GCA lowers earnings forecast for FY'17 due to troubled US biz

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GCA lowers earnings forecast for FY'17 due to troubled US biz

GCA Corp. lowered its consolidated earnings forecast for the fiscal year ended Dec. 31, 2017, as its U.S. business saw a drop in the volume of transactions and revenue.

The company said Jan. 31 it now expects its net income to come in at ¥1.38 billion, down 42.5% from its previous forecast of ¥2.4 billion. The company expects revenues to come in at ¥19.75 billion, down 1.2% from its previous forecast of ¥20 billion, while its operating income is expected to clock in at ¥2.04 billion, down from the previous forecast of ¥3.6 billion.

The company said the decline was driven by a 50% drop in announced, negotiated technology M&A transactions for the entire market in the U.S. in 2017. Also contributing to the decline were a number of engaged transactions that were pushed into 2018. The company's Japan region also saw a drop in transaction volume and revenue.

As of Jan. 31, US$1 was equivalent to ¥109.27.