Japan Earnings:Mitsui Net and Sales Fall, Softbank Net Surges

Hiruki Nakamura
06 Aug, 2015
New York City

Nikkei average closed higher and more companies announce earnings. Mitsui & Company, one of the largest trading companies in Japan reported declining profit and earnings. Softbank said quarterly revenues rose 10% and said estimating earnings outlook is difficult on several uncertainties.

[R]4:30 PM Tokyo – Nikkei average closed higher and more companies announce earnings. Mitsui & Company, one of the largest trading companies in Japan reported declining profit and earnings. Softbank said quarterly revenues rose 10% and said estimating earnings outlook is difficult on several uncertainties.[/R]

In quiet trading, stocks in Tokyo closed higher and the yen eased as investors focused on earnings from Softbank, Dai Nippon, Mitsui and Suntory.

The Nikkei 225 Stock Average increased 50.38 or 0.2% to 20,664.44 and the broader Topix index gained 7.73 to 1,673.58.

The yen eased to 124.87 against a dollar.

Stocks in Review

Dai Nippon Printing Co., Ltd rose 0.9% to 1,396 yen after the books and periodicals printer reported net sales in the first-quarter ending in June added 1.1% to 358.98 billion yen from 355.19 billion yen in a year ago period.

Net income in the quarter jumped 7.7% to 8.11 billion yen compared to 7.53 billion yen and diluted earnings per share increased to 12.51 yen from 11.53 yen in the same period a year ago.

For the year, Dai Nippon forecasted net sales to jump 3.3% to 1.51 trillion yen and net income to soar 11.4% to 30 billion yen.

Ebara Corporation declined 6.8% to 505 yen after the pumps, compressors, turbines maker said net sales in the first-quarter ending in June jumped 4.7% to 89.58 billion yen from 85.57 billion yen in a year ago period.

Net loss in the quarter widened to 2.25 billion yen compared to 1.87 billion yen and loss per share increased to 5.22 yen from 4.02 yen in the same period a year ago.

For the year, the pump maker forecasted net sales to climb 5% to 507 billion yen and net income to gain 1.8% to 24 billion yen.

Mitsui & Co Ltd jumped 3.9% to 1,645 yen after the trading company reported revenues in the first-quarter ending in June declined 6.3% to 1.28 trillion yen from 1.37 trillion yen in a year ago period.

Net profit in the quarter plunged 24.2% to 96.94 billion yen compared to 127.81 billion yen and diluted earnings per share dropped to 54.07 yen from 71.30 yen in the same period a year ago.

For the year the, Mitsui estimated net income of about 240 billion yen and earnings per share of about 133.89 yen.

Meiji Holdings Co. Ltd surged 17% to 20,720 yen after the dairy products maker reported net sales in the first-quarter ending in June climbed 7.1% to 293.19 billion yen from 273.68 billion yen in a year ago period.

Net income in the quarter surged 201.3% to 22.24 billion yen compared to 7.38 billion yen and earnings per share jumped to 302.11 yen from 100.25 yen in the same period a year ago.

The dairy products maker forecasted net sales for the first-half to advance 5.5% to 590 billion yen and net income to soar 134.2% to 29.50 billion yen.

For the year, Meiji estimated net sales to increase 3.9% to 1.21 trillion yen and net income to climb 61.9% to 50 billion yen.

Softbank Group Corp gained 1.9% to 7,140 yen after the mobile and internet services provider reported net sales in the first-quarter ending in June climbed 9.8% to 2.14 trillion yen from 1.95 trillion yen in a year ago period.

Net income in the quarter soared 175.1% to 213.38 billion yen compared to 77.57 billion yen and diluted earnings per share jumped to 176.70 yen from 65.14 yen in the same period a year ago.

SoftBank said it is difficult to provide forecasts at present due to number of “uncertain factors affecting the earnings.”

Separately, the largest telecoms group plans to buyback as much as 1.68% or 20 million of its own shares worth about 120 billion yen between August 7 and the end of fiscal year in March.

Suntory Beverage & Food Ltd closed unchanged at 5,400 yen after the beverages and foods maker reported stated net sales in the first-quarter ending in June increased 4.1% to 622.34 billion yen from 598.10 billion yen in a year ago period.

Net income in the quarter climbed 26.4% to 18.77 billion yen compared to 14.85 billion yen and earnings per share rose to 60.75 yen from 48.06 yen in the same period a year ago.

The dairy products maker forecasted net sales for the first-half to advance 5.5% to 590 billion yen and net income to soar 134.2% to 29.50 billion yen.

For the year, the beverage company forecasted net sales to gain 3.4% to 1.30 trillion yen and net income to surge 15.9% to 42 billion yen.