Isuzu Lifs Profit Views, Mitsubishi Motors Down

Darlington Musarurwa
20 Apr, 2010
New York City

The broader Topix index closed higher on the earnings expectations. Isuzu estimated a return to profit after two-years of losses and estimated net of 13 billion yen. Mitsubishi Motors cuts 2009 profit estimate. Japan is set to make revised money lending rule to be effective as of June 18.

[R]5:00 AM New York, 7:00 PM Tokyo – The broader Topix index closed higher on the earnings expectations. Isuzu estimated a return to profit after two-years of losses and estimated net of 13 billion yen. Mitsubishi Motors cuts 2009 profit estimate. Japan is set to make revised money lending rule to be effective as of June 18.[/R]

The benchmark index in Tokyo was nearly unchanged as commodities prices declined. The broader Topix index closed higher on the earnings expectations.

Isuzu Motor Corporation upgraded its profit forecast for the year ending March 30 on rising demand from both the domestic market and Asian countries.

In Tokyo trading Nikkei 225 Stock Average fell 0.1% or 8.09 to 10,900.68, and the broader Topix Index rose 0.1% to 972.11.

In the first section of the Tokyo Stock Exchange 9.1 billion shares worth 614 billion yen were traded and in the second section 329 million shares valued at 3.9 billion yen changed hands.

Of the Nikkei 225 index stocks, 123 rose, 86 fell, and 16 were unchanged. Sumitomo Osaka led gainers in the index shares with a rise of 5.4% followed by Dai Nippon Printing climbing 4.7%.

Isuzu Lifts Profit Estimate

Isuzu Motors lifted its profit forecast for the fiscal year ending March 30 to 13 billion yen compared to a loss of 5 billion yen estimated on February 5.

Sales in the period are expected to jump 1.9% to 1.08 trillion yen, while operating income is estimated to rise to 13 billion yen from a loss of 5 billion yen projected earlier.

The company notes that the unexpected review has been prompted by increasing demand both on the domestic market and shipments to ASEAN markets.

Isuzu has not decided whether it plans to pay a dividend and the amount.

Mitsubishi Motors Lowers Annual Outlook

Mitsubishi Motors yesterday cut its operating profit forecast to 13.8 billion yen from an earlier projection of 30 billion yen on falling sales and the delayed effects of cost-cutting measures.

Sales are estimated to slow to 1.4 trillion yen from 1.5 trillion yen, while the net profit projection was lowered to 4.7 billion yen from an estimate of 5 billion yen.

Japan to Effect Lending Laws in June

Nikkei News reported that Financial Services Minister Shizuka Kamei said today the cabinet has endorsed an order that will effectively bring the revised Moneylending Control Law into force on June 18.

The new regulations cap loans to individual at a third of the borrower’s annual income.

Nikkei Movers

Credit Saison Co., Ltd led the decliners in the Nikkei 225 Stock Average with a loss of 4.9% followed by losses in CSK Holdings Corporation of 3.7%, in Hitachi Construction Machinery Co., Ltd of 3.1%, in Sumco Corp 3.1% and in Softbank Corp 2.7%.

Sumitomo Osaka Cement Co., Ltd led gainers in the Nikkei 225 Stock Average with a rise of 4.8% followed by gains in Dai Nippon Printing Co., Ltd 4.1%, in Toho Co Ltd of 4.0% and in Isuzu Motors Ltd 3.8%.

Other Movers

Isuzu Motors Ltd added 4.5% to 274.00 yen after the maker of light-duty trucks on Tuesday revised its estimate of annual income and returned to the profit for the first time in two years.

Mitsubishi Corporation the commodities trader fell 1.8% to 2,331.00 yen after commodities prices declined in international markets.

Mitsubishi UFJ Financial Group, Inc rose 0.2% to 499.00 yen.

Sumitomo Mitsui Financial Group, Inc rose 0.7% to 3,200.00 yen.