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Aflac 3Q profits suffer along with Japan's yen

The Associated Press

NEWS: Insurer Aflac Inc. says its net income fell 31 percent as it absorbed the impact of a weaker yen in Japan, where it does a substantial portion of its business.

DETAILS: Aflac said the yen has fallen by more than 20 percent against the dollar compared to a year ago. Because of that, Aflac Japan's premium income grew almost 7 percent in yen, but fell 15 percent in dollars, to $3.7 billion. U.S. premium income rose 3 percent to $1.3 billion.

NUMBERS: Net income was $702 million, or $1.50 per share, for the quarter that ended Sept. 30. That was down from $1.02 billion, or $2.16 per share, during the same period a year earlier. Revenue fell 14 percent to $5.89 billion, from $6.85 billion a year earlier. Its adjusted earnings amounted to $1.47 a share in the latest quarter. Analysts surveyed by FactSet had been expecting a profit of $1.48 per share on that basis on revenue of $5.9 billion.

FUTURE: "While the (U.S.) unemployment rate has shown some signs of improvement, hiring remains weak, especially at smaller employers" where Aflac gets 90 percent of its business, Chairman and CEO Daniel P. Amos said in a written statement. He predicted 2014 operating earnings of $6.28 to $6.52 a share. Analysts had been expecting $6.52 a share.

STOCK: Shares had risen 53 cents to close at $67 before the results were released. They fell $1.10 to $65.90 in after-hours trading.