Deeper Decline in Industrial Output in Japan

Hiruki Nakamura
30 Jul, 2014
New York City

Japan indexes advanced and investors focused on corporate earnings. Industrial production decreased for the second month in a row and the monthly decline was the largest since the earthquake and tsunami in 2011. Japan Tobacco first quarter sales increased 1.6%. Konica Minolta quarterly net plunged.

[R]4:30 PM Tokyo – Stocks in Tokyo traded higher and investors focused on corporate earnings. Industrial production decreased for the second month in a row and the monthly decline was the largest since the earthquake and tsunami in 2011. Japan Tobacco first quarter sales increased 1.6%. Konica Minolta quarterly net plunged.[/R]

Stocks in Japan advanced and industrial production in June decreased for the second month in a row.

The Ministry of Economy, Trade and Industry said industrial output in June declined 3.3% following the 0.7% in May. On a yearly basis, industrial production climbed 3.2% from a year ago month.

Shipments decreased 1.9% on a monthly basis in June, sixth monthly decline in a row and inventories in the month increased 1.9%, an increase for the second month in a row.

Businesses and households are adjusting to the latest sales tax increase in April to 8% from 5% and monthly decline in industrial production was the largest since the 2011 earthquake and tsunami.

The Nikkei 225 Stock Average rose 28.16 or 0.2% to 15,646.23 and the broader Topix index edged up 1.83 to 1,292.24.

The yen closed at 102.22 against one U.S. dollar.

Stocks in Review

ANA Holdings Inc slid 0.7% to 250.70 after the airline company reported revenue in the first-quarter ending in June climbed 10% to 386.83 billion yen from 351.55 billion yen a year ago period.

Net in the quarter swung to profit 3.49 billion yen compared to a loss of 6.64 billion yen and earnings per share swung to 1 yen from a loss of 1.89 yen a year earlier.

FUJIFILM Holdings Corporation fell 0.5% to 2,991 yen after the films and digital camera maker stated revenue in the first-quarter ending in June slipped 1.8% to 558.36 billion yen from 568.74 billion yen a year ago period.

Net income in the quarter increased 2.8% to 15.36 billion yen compared to 14.95 billion yen and diluted earnings per share rose to 31.79 yen from 30.95 yen a year earlier.

Japan Tobacco Inc gained 1.5% to 3.759 yen after the tobacco producer said revenue in the first-quarter ending in June increased 1.6% to 556.45 billion yen from 547.94 billion yen a year ago period.

Profit in the quarter soared 7.9% to 107.80 billion yen compared to 99.91 billion yen and diluted earnings per share jumped to 58.39 yen from 53.95 yen a year earlier.

Konica Minolta, Inc climbed 3.7% to 1,108 yen after the printer, camera and medical instruments maker reported revenue in the first-quarter ending in June jumped 4.5% to 228.28 billion yen from 218.54 billion yen a year ago period.

Net income in the quarter plunged 42.7% to 5.60 billion yen compared to 9.77 billion yen and diluted earnings per share dropped to 10.95 yen from 18.39 yen a year earlier.

Nippon Gas Co Ltd rose 0.3% to 2,420 yen after the natural gas company said net sales in the first-quarter ending in June increased 4.4% to 30.93 billion yen from 29.62 billion yen a year ago period.

Net income in the quarter declined 21.2% to 1.24 billion yen compared to 1.57 billion yen and earnings per share slumped to 28.15 yen from 33.09 yen a year earlier.