Nu Skin Enterprises Inc. said the disaster sparked by Japan’s March 11 earthquake would depress first-quarter earnings by 1 to 2 cents a share and shave $3 million to $5 million off its revenues.
The beauty firm, which specializes in anti-aging products, previously projected first-quarter profits of 50 to 53 cents a share on revenues of $380 million to $390 million.
“We believe this first-quarter impact will largely be offset by strength from our other markets and favorable foreign currency moves,” said Truman Hunt, president and chief executive officer. “We will continue to provide transparency by issuing a high-level update on the company’s first-quarter results by April 6.”
The firm also said the Tokyo District Court upheld a Japan Customs assessment that showed the company owed about $33 million in duties for the 2002 to 2005 period.
“We strongly disagree with the court’s decision and are likely to appeal,” said Ritch Wood, chief financial officer. “As a result of this decision, however, we plan to take a charge of approximately $33 million this quarter. The charge is a non-cash item as the company was previously required to pay the assessments.”