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Reports: Nomura to post record 3Q net loss
AP - 52 minutes ago
TOKYO - Third-quarter losses at Nomura Holdings Inc. were likely far worse than expected as the global financial turmoil took a brutal toll on Japan's biggest brokerage, news reports said Sunday.
The company, which bought failed U.S. investment bank Lehman Brothers' operations in Asia, Europe and the Middle East, is projected to post a net loss of 300 billion yen ($3.4 billion) for the October-December period, the Nikkei financial daily and Kyodo news agency said without naming sources.
The result would mark Nomura's fourth straight quarterly loss and its most dismal performance since it began reporting quarterly figures under U.S. accounting standards in 2001.
A Thompson Financial survey of analysts predicts an average net loss of 117.7 billion yen for the third quarter and a loss of 464.3 billion yen for the full fiscal year through March.
The Tokyo-based company is scheduled to report third-quarter earnings on Tuesday. It does not release its own earnings forecasts and was unavailable for comment Sunday.
In the previous July-September period, the brokerage reported a net loss of 72.9 billion yen just as it embarked on its major overseas offensive. The company blamed the poor results on deteriorating market conditions that cooled trading activity and kept companies from issuing stocks and bonds.
Slumping stock markets have also sharply reduced the value of Nomura's securities holdings.
Nomura has said it will book about 200 billion yen in costs related to its Lehman purchases.
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