Toyota Reaffirms Global Production Outlook, Marubeni Net Rises 7%

Hiruki Nakamura
05 Aug, 2015
New York City

Investors shifted focus to domestic earnings. Toyota said quarterly net rose 10% and reaffirmed its annual global production outlook with a slight change in production mix. Marubeni said quarterly net rose 7% but sales declined 10%.

[R]4:30 PM Tokyo – Investors shifted focus to domestic earnings. Toyota said quarterly net rose 10% and reaffirmed its annual global production outlook with a slight change in production mix. Marubeni said quarterly net rose 7% but sales declined 10%.[/R]

Investors shifted focus to domestic earnings after Toyota revised its annual production outlook and Marubeni said sales in the quarter declined on lower price of imported crude oil related products.

The Nikkei 225 Stock Average gained 93.70 or 0.5% to 20,614.06 and the broader Topix index edged up 6.02 to 1,665.85.

The yen eased to 124.41 against a dollar.

Stocks in Review

Fast Retailing Co Ltd declined 4.7% to 58,480 yen after the casual clothing retailer said total sales in July at Uniqlo clothing outlets decreased 1.2% from a year ago and same-store sales fell 1.5%, a second month in a row of declines and sales at directly-run stores slipped 1.4%.

Terumo Corporation surged 12.9% to 3,535 yen after the medical equipment maker said net sales in the first-quarter ending in June climbed 11.9% to 128.66 billion yen from 114.95 billion yen in a year ago period.

Net income in the quarter surged 72.8% to 14.50 million yen compared to 8.39 billion yen and diluted earnings per share jumped to 35.83 yen from 22.10 yen in the same period a year ago.

For the first-half, the company forecasted net sales to soar 7.2% to 250 billion yen but net income to decline 20% to 17.50 billion yen.

For the year, the medical equipment maker estimated net sales to climb 6.2% to 520 billion yen and net income to increase 2.7% to 39.50 billion yen.

Separately, the company plans to buyback up to 3,746 thousand shares valued for as much as 11 billion yen between August 5 and August 31.

Mitsubishi Chemical Holdings Corporation gained 0.7% to 775.90 yen after the diversified company stated net sales in the first-quarter ending in June soared 16% to 941.03 billion yen from 810.91 billion yen in a year ago period.

Net income in the quarter surged 493.86% to 34.80 million yen compared to 5.86 billion yen and diluted earnings per share climbed to 23.74 yen from 3.97 yen in the same period a year ago.

For the first-half, the company forecasted revenues to edge up 0.5% to 1.93 trillion yen and net income to jump 33.3% to 48 billion yen.

Marubeni Corporation jumped 3.1% to 703.10 yen after the diversified conglomerate reported net sales in the first-quarter ending in June declined 9.5% to 3.34 trillion yen from 3.69 trillion yen in a year ago period.

Net income in the quarter jumped 7.2% to 72.70 billion yen compared to 70.81 billion yen and diluted earnings per share increased to 40.93 yen from 39.81 yen in the same period a year ago.

For the year, the company forecasted net sales to edge up 0.5% to 14 trillion yen but net income to soar 70.4% to 180 billion yen.

Nippon Telegraph and Telephone Corporation slipped 1.5% to 4,794 yen after the fixed-line phone company reported net sales in the first-quarter ending in June jumped 2.5% to 2.71 trillion yen from 2.64 trillion yen in a year ago period.

Net income in the quarter climbed 29.7% to 193.17 billion yen compared to 148.97 billion yen and earnings per share soared to 91.24 yen from 67.11 yen in the same period a year ago.

For the year, the NTT forecasted net sales to jump 2.3% to 11.35 trillion yen but net income to surge 21.6% to 630 billion yen.

The company also plans to buyback as much as 0.99% of its shares worth about 100 billion yen between August 6 and October 30.

Toyota Motor Corp dropped 2.4% to 7,930 yen after the auto maker reported net sales in the first-quarter ending in June climbed 9.3% to 6.99 trillion yen from 6.39 trillion yen in a year ago period.

Net income in the quarter soared 10% to 646.39 billion yen compared to 587.77 billion yen and diluted earnings per share jumped to 205.30 yen from 185.34 yen in the same period a year ago.

For the year, Toyota forecasted net sales to increase 2.1% to 27.80 trillion yen and net income to jump 3.5% to 2.25 trillion yen.

Separately, the auto maker revised its production and sales plan for the year.

Domestic production at Toyota unit to increase by 80,000 units to 3,210,000 units while reduce production by the same amount outside of Japan to 5,800,000 units.

Total worldwide production will remain at 9,010,000 units as estimated in January 2015.

Toyota forecasted domestic sales in fiscal 2015 to jump 30,000 units to 1,480,000 units while sales outside Japan to decline 60,000 units to 7,670,000 units.

The auto maker estimated overall sales for the year to drop by 30,000 units to 9,150,000 units, excluding sales at Daihatsu and Hino.