In Japan Fujitsu Lifts Outlook; Lixil and Chubu Lower Estimates

Hiruki Nakamura
02 Feb, 2015
New York City

Tokyo indexes declined after weaker than expected economic growth in the U.S. and China reported manufacturing index shrank in December. Chubu Electric Power lowered its net income outlook by 26%. Fujitsu soared after the conglomerate lifted its outlook by 5.6%.Lixil Group lowered its sales outlook.

[R]4:30 PM Tokyo – Tokyo indexes declined after weaker than expected economic growth in the U.S. and China reported manufacturing index shrank in December. Chubu Electric Power lowered its net income outlook by 26%. Fujitsu soared after the conglomerate lifted its outlook by 5.6%. Lixil Group lowered its sales outlook.[/R]

Stocks in Tokyo traded lower following weaker than expected economic data from the U.S. and China.

U.S. economic growth in the December quarter was less than expected 2.6% annual rate and for all of 2014 rate was 2.4%.

Separately, China reported manufacturing activities in December shrank for the first time in more than two years. A private report published by HSBC and Markit Economics also was lower than expected.

The Nikkei 225 Stock Average dropped 116.35 or 0.7% to 17,558.04 and the broader Topix index fell 6.32 to 1,408.75.

The yen closed lowered at 117.58 against one dollar.

Stocks in Review

Chubu Electric Power plunged 4.1% to 1,498.50 yen after the electricity supplier said revenues in the nine-month period ending in December climbed 4.8% to 2.26 trillion yen from 2.05 trillion yen a year ago period.

Net in the period swung to profit 29.28 billion yen compared to a loss of 31.58 billion yen and earnings per share swung to 38.65 yen from a loss of 41.68 yen per share in the same period a year ago.

The utility company forecasted revenues for the year to soared 9.8% to 3.12 trillion yen and net income will be flat at 28 billion yen.

Calbee Inc declined 3.8% to 4,450 yen after the bakery and cereal food maker said net sales in the nine-month period ending in December surged 10.6% to 164.64 billion yen from 148.92 billion yen a year ago period.

Net income in the period climbed 14% to 11.79 billion yen compared to 10.34 billion yen and earnings per share advanced to 88.14 yen from 77.35 yen in the same period a year ago.

The bakery said it plans to launch a subsidiary in Spain with an estimated cost of €12 million or 1.75 billion yen in the next financial year from April.

East Japan Railway Company climbed 2.7% to 9,373 yen after the bullet train operator reported net sales in the nine-month period ending in December increased 1.7% to 2.07 trillion yen from 2.03 trillion yen a year ago period.

Net income in the period rose 0.7% to 195.87 billion yen compared to 194.52 billion yen and earnings per share gained to 498.23 yen from 492.98 yen in the same period a year ago.

The railway company forecasted operating revenues for the year to increase 1.5% to 2.74 trillion yen and flat net income at 200 billion yen.

Japan Airlines Co Ltd dropped 2.1% to 3,925 yen after the airline said revenues in the nine-month period ending in December jumped 3.3% to 1.02 trillion yen from 989.92 billion yen a year ago period.

Net income in the period slipped 3.1% to 119.68 billion yen compared to 123.50 billion yen and earnings per share fell to 330.06 yen from 340.56 yen in the same period a year ago.

The airline forecasted revenues for the year to increase less than expected 2.5% to 1.34 trillion yen but net income to plunge 16.4% to 139 billion yen.

Lixil Group Corporation jumped 2.4% to 2,367 yen after the sanitary equipment provider stated net sales in the nine-month period ending in December climbed 5.1% to 1.22 trillion yen from 1.16 trillion yen a year ago period.

Net income in the period tumbled 39.4% to 34 billion yen compared to 56.07 billion yen and diluted earnings per share declined to 67.47 yen from 126.33 yen in the same period a year ago.

The company forecasted net sales for the year to drop 1.9% to 1.66 trillion yen and net income to plunge 45.3% to 24.50 billion yen.

Seiko Epson Corporation plunged 10% to 4,340 yen after the printer and scanner maker reported revenues in the nine-month period ending in December soared 7.9% to 814.80 billion yen from 755.19 billion yen a year ago period.

Net income in the period surged 112% to 90.62 billion yen compared to 42.74 billion yen and earnings per share jumped to 505.77 yen from 237.93 yen in the same period a year ago.

Seiko forecasted revenues for the year to increase 2.8% to 1.09 trillion yen from the earlier estimate of 1.06 trillion yen but left its profit estimated unchanged at 111 billion yen from previous estimate and still higher than 84.2 billion yen in fiscal 2013.