Nikkei Rises 1.1%; Nintendo Surges on Profit, Sony Net Triples

Hiruki Nakamura
30 Jul, 2015
New York City

Nikkei average increased 1.1% and industrial output jumped 0.8% in June. However, auto sales in the month declined 5.3% on 5.1% decline in sales. Nintendo soared after posting profit in the latest quarter. Sony Corp quarterly net tripled.

[R]4:30 PM Tokyo – Nikkei average increased 1.1% and industrial output jumped 0.8% in June. However, auto sales in the month declined 5.3% on 5.1% decline in sales. Nintendo soared after posting profit in the latest quarter. Sony Corp quarterly net tripled.[/R]

Stocks and market indexes in Tokyo jumped after industrial output increased in June and auto sales struggled.

The seasonally adjusted industrial output in June jumped 0.8% followed by 2.1% drop in May, the Ministry of Economy, Trade and Industry said.

For the twelve months to June, industrial output increased 2% from the decline of 3.9% in last twelve months to May.

Automobile production in June declined 5.3% to 811,864 units from 857,415 units in a year ago month, the Japan Automobile Manufactures Association said today.

Total passenger cars sales in June plunged 6.1% to 683,472 units and total truck sales fell 1.8% to 115,485 compared to the same month a year ago.

The association added, in the first-half, production of passenger cars tumbled 9.5% to 3,910,535 and total truck production decreased 1.1% to 670,049 while total buses production jumped 2.3% to 70,256. Motorcycle production in June plummeted 21.6% to 34,973 units.

Total domestic passenger car sales in the first-half declined 12.3% to 2,251,753 units and truck sales dropped 3.5% to 418,070 units but sales of buses soared 12.1% to 6,811 units.

Total vehicles exports in June jumped 3.3% to 403,730 units after declining in the previous month.

The Nikkei 225 Stock Average jumped 219.92 or 1.1% to 20,522.83 and the broader Topix index increased 13.27 to 1,647.21.

The yen declined to 124.19 against a dollar.

Stocks in Review

Fujifilm Holdings Corp gained 0.9% to 4,561.50 yen after the films, digital cameras and optical devices maker reported net sales in the first-quarter ending in June jumped 5.8% to 590.92 billion yen from 558.36 billion yen in a year ago period.

Net income in the quarter soared 58.2% to 24.31 billion yen compared to 15.37 billion yen and earnings per share climbed to 50.43 yen from 31.79 yen the same period a year ago.

Fujifilm forecasted net sales for the year ending in March 2016 to increase 3.5% to 2.58 trillion yen and net income to edge up 1.2% to 120 billion yen.

The company plans to buy back 6.4% of its own shares or as many as 30 million shares worth up to 100 billion yen between August 3 and March 31, 2016.

Japan Airlines Co Ltd increased 1.7% to 4,595 yen after the airline company said net revenues in the first-quarter ending in June rose 1.6% to 312.04 billion yen from 307.08 billion yen in a year ago period.

Net income in the quarter climbed 120.7% to 32.61 billion yen compared to 14.78 billion yen and earnings per share jumped to 89.96 yen from 40.75 yen the same period a year ago.

Nintendo Co., Ltd surged 8.3% to 22,195 yen after the portable and console game machines and software developer said net sales in the first-quarter ending in June soared 20.8% to 90.22 billion yen from 74.70 billion yen in a year ago period.

Net in the quarter swung to profit 8.28 billion yen compared to a loss of 9.92 billion yen and diluted earnings per share swung to 68.97 yen from diluted loss per share of 83.84 yen the same period a year ago.

The game developer said it sold 1.62 million copies of new shooting game Splatoon for the Wii U console and expects its first games for smartphone devices to be released by the end of this year.

For the year ending in March 2016, Nintendo forecasted net sales to jump 3.7% to 570 billion yen but net income to decline 16.4% to 35 billion yen.

Sony Corporation dropped 2.1% to 3,585 yen after the electronic products maker reported net sales in the first-quarter ending in June edged down 0.1% to 1.808 trillion yen from 1.810 trillion yen in a year ago period.

Net income in the quarter surged 207.5% to 82.4 billion yen compared to 26.8 billion yen and earnings per share jumped to 70.36 yen from 22.94 yen the same period a year ago.

Sony said revenues in mobile communication segment declined 16.3% to 280.5 billion yen while revenues in game and network services business soared 12.1% to 288.6 billion yen and revenues in music segment climbed 8.5% to 130.2 billion yen.

Financial services revenue jumped 13.1% to 279.4 billion yen.

Sony added sales in image products and solution rose 3.5% to 170.4 billion yen and revenues in devices segment surged 35.1% to 237.9 billion yen but revenues in home entertainment and sound segment plunged 13.8% to 253.1 billion yen and revenues in Sony pictures business tumbled 11.9% to 171.5 billion yen.

For the year, Sony forecasted net sales to decline 3.8% to 7.90 trillion yen and net income swung to about 140 billion yen from estimated net loss of 126 billion yen as announced on April 30.

Takeda Pharmaceutical Co Ltd rose 0.3% to 6,102 yen after the diabetes and anticancer drugs maker reported net sales in the first-quarter ending in June climbed 8.5% to 446.30 billion yen from 411.15 billion yen in a year ago period.

Net income in the quarter tumbled 25.9% to 26.58 billion yen compared to 33.40 billion yen and diluted earnings per share declined to 31.12 yen from 42.36 yen the same period a year ago.

For the year, the company forecasted net sales to increase 2.4% to 1.82 trillion yen and net income of about 68 billion yen.

Mazda Motor Corporation soared 4.2% to 2,414 yen after the auto maker said net sales in the first-quarter ending in June climbed 14.2% to 806.01 billion yen from 705.64 billion yen in a year ago period.

Net income in the quarter declined 24.8% to 36.75 billion yen compared to 48.89 billion yen and earnings per share dropped to 61.48 yen from 81.78 yen the same period a year ago.

For the first-half, the company forecasted net sales to soar 10.1% to 1.60 trillion yen and net income to tumble 35.7% to 60 billion yen.

Mazda estimated revenues for the year to climb 7.1% to 3.25 trillion yen and net income to decline 11.8% to 140 billion yen.