Japan Indexes Fall on Weak Earnings from Nintendo, Panasonic

Hiruki Nakamura
31 Jul, 2014
New York City

Topix index in Tokyo closed lower for the first time in five days after several companies missed earnings estimates. Sumitomo Mitsui Financial Group reported smaller than expected decline in earnings. Mitsubishi Heavy Industries said quarterly net soared 65%.

[R]4:30 PM Tokyo – Topix index in Tokyo closed lower for the first time in five days after several companies missed earnings estimates. Sumitomo Mitsui Financial Group reported smaller than expected decline in earnings. Mitsubishi Heavy Industries said quarterly net soared 65%.[/R]

Market indexes in Tokyo closed lower and the Topix closed down for the first time in five days and Nintendo plunged 7% after the game console maker missed sales target and Kansai Electric Power lowered its first-half revenue outlook.

The Nikkei 225 Stock Average fell 25.46 or 0.2% to 15,620.77 and the broader Topix index slid 2.82 to 1,289.42. For the month, Nikkei 225 climbed 1.9%.

The yen closed at 102.86 against one U.S. dollar.

Stocks in Review

Mitsubishi Heavy Industries, Ltd rose 0.4% to 678.10 yen after the diversified manufacturer reported net sales in the first-quarter ending in June soared 15% to 859.7 billion yen from 747.4 billion yen a year ago.

Net income in the quarter surged 65% to 22.5 billion yen compared to 13.6 billion yen and earnings per share climbed to 6.72 yen from 4.07 yen a year earlier.

Nintendo Co., Ltd plunged 6.5% to 11,525 yen after the gaming machines and software maker said sales in the first-quarter ending in June declined 8.4% to 74.70 billion yen from 81.55 billion yen a year ago period.

Net in the quarter swung to a loss of 9.92 billion yen compared to profit of 8.62 billion yen and diluted loss per share swing to 83.84 yen from profit of 67.44 yen a year earlier.

The company said in the quarter it sold a total 510,000 Wii U consoles compared to 160,000 and 3DS console sales declined to 820,000 compared to 1.4 million in a year ago period.

Nippon Steel & Sumitomo Metal Corp slipped 1.7% to 314.10 yen after the steel producer reported net sales in the first-quarter ending in June jumped 5.8% to 1.36 trillion yen from 1.29 trillion yen a year ago period.

Net income in the quarter tumbled 23.8% to 48.34 billion yen compared to 63.40 billion yen and earnings per share dropped 5.30 yen from 6.99 yen a year earlier.

Panasonic Corporation gained 0.6% to 1,257.50 yen after household products maker stated net sales in the first-quarter ending in June rose 2% to 1.85 trillion yen from 1.82 trillion yen a year ago period.

Net income in the quarter plunged 64.8% to 37.93 billion yen compared to 107.83 billion yen and earnings per share declined 16.41 yen from 46.65 yen a year earlier.

Sony Corporation fell 1% to 1,772 yen after the electronics products maker said sales in the first-quarter ending in June climbed 5.8% to 1.81 trillion yen from 1.71 trillion yen a year ago period.

Net income in the quarter surged 757.3% to 26.8 billion yen compared to 3.1 billion yen and diluted earnings per share jumped to 22.94 yen from 2.68 yen a year ago.

In the quarter, sales at its gaming console division soared 96% and 20.7 billion yen in operating loss largely related to PC business that the company has sold.

Sony said its games unit in the quarter generated an operating profit of 4.3 billion yen compared to an operating loss of 16.4 billion yen in the same period last year.