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Kao’s 24-Year Growth

July 10, 2006

TOKYO: Kao Corp. announced that its consecutive streak of year-on-year group pretax profit growth has ended at 24 years, with fiscal 2005 figures falling short of fiscal 2004 on the weak performance of its mainstay home products division and the weight of its acquisition of Kanebo Cosmetics Inc. The manufacturer of household products also said that it expects group pretax profit for fiscal 2006 to decline 3%, but group net profit is expected to increase due to reduced tax liabilities stemming from the acquisition.
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