Mitsubishi Rayon Writes Down Assets

Mitsubishi Rayon will post hundreds of millions of dollars in losses in the third quarter of the fiscal year that ends March 31. The Japanese firm is in the process of acquiring Lucite, an acrylic plastics maker and the world's leading producer of methyl methacrylate, for $1.6 billion. It will post a charge of about $145 million related to a larger than 50% cut in acrylic fiber capacity in Japan and China. In addition, Mitsubishi Rayon is writing down the book value of its shareholding in other companies from $445 million at the end of the second quarter to about $115 million. The company's directors and executive officers have agreed to salary cuts of 10 to 20%.