Fanuc Lifts Dividend Payout Ratio; Canon, Honda Net Drop

Hiruki Nakamura
28 Apr, 2015
New York City

Nikkei stock average in Tokyo closed higher amid corporate earnings and Fanuc soared 6% after industrial robot maker said it plans to pay 60% of its consolidate income as dividend. Komatsu declined 6% after the company estimated operating profit to fall 8.7%.

[R]4:30 PM Tokyo – Nikkei stock average in Tokyo closed higher amid corporate earnings and Fanuc soared 6% after industrial robot maker said it plans to pay 60% of its consolidate income as dividend. Komatsu declined 6% after the company estimated operating profit to fall 8.7%.[/R]

Nikkei index in Tokyo closed higher and seasonally adjusted retail sales in March declined 1.9% and in the quarter slumped 4.8%.

Retail sales in March plunged 9.7% to 12.40 trillion yen from 10.73 trillion yen in February, the Ministry of Economy, Trade and Industry said today.

Commercial sales declined 8.5% to 42.27 trillion yen after losing 3.3% in the previous month and wholesale sales retreated 7.9% percent to 29.87 trillion yen compared to a fall of 4% in February.

On a seasonally adjusted basis, retail sales dropped 1.9% from the increase of 0.7% in a month earlier.

In the first-quarter to March, retail sales slumped 4.8% to 34.61 trillion yen compared to 0.6% rise in fourth-quarter of 2014.

Market trading is likely to be subdued ahead of Golden Week holidays starting on Wednesday.

The Nikkei 225 Stock Average gained 75.63 or 0.4% to 20,058.95 and the broader Topix index rose 8.36 to 1,627.43.

The yen closed at 119.02 against a dollar.

Stocks in Review

Canon Inc declined 3.3% to 4,358.50 yen after the inkjet printers and digital camera maker reported revenues in the first-quarter ending in March jumped 1.3% to 857.45 billion yen from 868.31 billion yen in a year ago period.

Net income in the quarter plunged 28.7% to 33.93 billion yen compared to 47.61 billion yen and diluted earnings per share dropped to 31.07 yen from 42.11 yen in the same period a year ago.

The company revised net sales forecast for the year to fall 1% to 3.86 trillion yen from earlier estimate of 3.90 trillion yen and net income to decrease 1% to 255 billion yen compared to previous guidance of 260 billion yen.

Daiwa Securities Group Inc slid 0.1% to 1,032.50 yen after the second largest securities brokerage firm said revenues in the year ending in March jumped 2.6% to 659.40 billion yen from 642.83 billion yen in a year ago period.

Net income in the year declined 12.4% to 148.49 billion yen compared to 169.48 billion yen and diluted earnings per share decreased to 86.28 yen from 98.71 yen in the same period a year ago.

Honda Motor Co Ltd rose 0.3% to 4,330.50 yen after the vehicles maker said net sales in the year ending in March climbed 6.8% to 12.65 trillion yen from 11.84 trillion yen in a year ago period.

Net income in the year slumped 8.9% to 522.76 billion yen compared to 574.11 billion yen and diluted earnings per share dropped to 290.06 yen from 318.54 yen in the same period a year ago.

The company forecasted revenues in fiscal 2016 to climb 9.5% to 14.50 trillion yen and net income edged up 0.5% to 525 billion from fiscal 2015.

Mitsubishi UFJ Financial Group Inc rose 0.5% to 855.70 yen after the Nikkei business daily reported financial services provider’s net profit in fiscal 2014 of about 1 trillion yen on the back of gains in profit in Asia and in the U.S.

Mitsubishi Electric Corporation increased 0.5% to 1,582 yen after the electrical and electronic equipments maker stated net sales in the year ending in March climbed 7% to 4.32 trillion yen from 4.05 trillion yen a year ago period.

Net income in the year surged 53% to 234.6 billion yen compared to 153.4 billion yen and earnings per share jumped to 109.32 yen from 71.49 yen in the same period a year ago.

For fiscal 2016, the company forecasted net sales for the year to increase 1% to 4.370 trillion yen and net income to decline 6% to 220.0 billion yen.

NTT Docomo Inc edged up 0.7% to 2,263.50 yen after the mobile communication company reported net sales in the year ending in March slipped 1.7% to 4.38 trillion yen from 4.46 trillion yen in a year ago period.

Net income in the year plummeted 11.8% to 410.09 billion yen compared to 464.73 billion yen and earnings per share slumped to 101.55 yen from 112.07 yen in the same period a year ago.

The company forecasted revenues for the fiscal 2016 to jump 2.9% to 4.51 trillion yen and net income to soar 14.6% to 470 billion from fiscal 2015.

Panasonic Corporation gained 1% to 1,716 yen after the home appliances maker reported net sales in the year ending in March fell 0.3% to 7.72 trillion yen from 7.74 trillion yen in a year ago period.

Net income in the year surged 49% to 179.49 billion yen compared to 120.44 billion yen and diluted earnings per share jumped to 77.64 yen from 52.10 yen in the same period a year ago.

The company forecasted revenues in the fiscal 2016 to jump 4% to 8 trillion yen and flat net income of 180 billion from fiscal 2015.