TOKYO — Shiseido Group generated consolidated sales of $1.18 billion, the converted equivalent of 141.75 billion yen at current exchange, for the first quarter ended June 30. This is the first time that the Japanese cosmetics giant group has broken out results on a quarterly basis, and there are no comparisons available with the prior year.

“Business conditions surrounding the [Shiseido] company for the first quarter ended June 30 remained severe,” said the company in a statement. “Deflation-led recession continued in Japan, whereas the war in Iraq and the outbreak of SARS, in addition to the slowdown in the U.S. and European economies, affected the overseas business activities,” said Shiseido.

“Under these circumstances, the company has aimed to achieve sales volumes in the domestic cosmetics business by invigorating sales activities through acceleration of the structural reforms focusing on the sales counter and by concentrating investments on the core mainstay lines, defined in the reorganized brand portfolio,” said Shiseido. “In the toiletry business, value-oriented marketing activities were implemented in order to achieve the number one status in each category,” Shiseido added.

Overseas, Shiseido emphasized efforts in Asia, particularly in China with its remarkable growth. The sales effort included the introduction of new items.

For the fiscal year ended March 31, Shiseido generated consolidated sales of $5.17 billion, or 621.3 billion yen. For the present fiscal year, which will end onMarch 31, 2004, Shiseido projects sales of $5.3 billion, or 640 billion yen. All dollar figures have been converted from the yen at current exchange.

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