Honda, Nomura Earnings Fall

123jump.com Staff
25 Apr, 2008
New York City

Nomura Holdings reported first quarter loss of 154 billion yen compared to a profit of 33 billion yen from a year ago. The largest brokerage firm in Japan set aside $1.5 billion to cover bond insurance losses. Nomura fell 12% and dragged Daiwa Securities 9% as well. Quarterly trading revenue declined 80%. For the year 2007 Nomura reported a loss of 68 billion yen compared to a gain of 176 billion yen in 2006.

[R]5:00AM New York, 7:00PM Tokyo - Japan core consumer prices advance 1.2% in March. NTT DoCoMo, Honda and Nomura reported declining earnings.[/R]

Stocks in Japan rose on a falling yen that helped boost exporters and on renewed investor confidence in financial stocks.

Market sentiment

In Tokyo trading Nikkei 225 rose 2.38% or 322.6 at 13,863.47, and the broader Topix Index increased 2.5% or 32.34 at 1,339.91.

In the first section of the Tokyo Stock Exchange 18 billion shares worth 2.4 trillion yen and in the second section 570 million shares valued at 1.1 billion yen changed hands.

Of the Nikkei 225 stocks 195 gained, 26 declined, and 4 were unchanged. Sumitomo Trust & Banking led advancers in the index shares with a rise of 7.81% on renewed confidence in financial stocks.

Japan’s core consumer prices rise 1.2% in March

The Statistics Bureau reported today that the core consumer price index for Japan rose 0.5% for the month and 1.2% for the year at 101 in March.

Food prices increased 0.7% for the month and 1.6% for the year, housing was unchanged for the month and rose 0.1% from the previous year, while fuel, light and water charges gained 0.1% in the month and 4.2% in the year.

Also clothes and footwear prices increased 4.1% for the month and rose 0.4% for the year. Transport and Communication increased 0.4% in the month, and gained 3.5% in the year, and education was unchanged for the month but rose 0.7% in the year.

According to the Statistics Bureau, consumer price index for Ku-area of Tokyo in April 2008 was up 0.3% from the previous month and up 0.6% over the previous year at 100.8.

Food prices rose 0.7% for the month and 1.6 for the year, while housing prices surged 0.1% and 0.2% for the month and the year respectively.

Fuel, light and water charges gained 1.9% for the previous month and 3.7% from March and furniture and household prices gained 0.2% in the month and slumped 1.5% in the year.

TCI rejects Japan’s recommendation

The Nikkei news reported today that the Children''s Investment Fund, a British hedge fund, today rejected the Japanese government''s recommendation that it retract its plan to acquire a larger stake in Electric Power Development Co.

Gainers & Losers

Sumitomo Trust & Banking led advancers in the Nikkei 225 index shares with a rise of 7.81% followed by increases in Aeon Co. Ltd of 7.45%, in Mizuho Financial Group of 7.33%, in T&D Holdings of 7.30%, and Shinsei Bank of 7.26%.

Financial stocks increased after investor confidence in financial stocks rose.

Exporters also gained as the yen dropped to 144.22 against the dollar. Canon Inc. gained 4.45%, Casio increased 2.99%, and Komatsu Ltd advanced 3.25%.

Kawasaki Kisen led decliners in the Nikkei 225 index shares with a drop of 4.59% followed by losses in Inpex Holdings of 4.03%, in Comsys Holdings of 3.07%, NGK Insulators of 2.72%, and Itochu Corp. of 2.40%.

Earnings News

Nomura Holdings reported first quarter loss of 154 billion yen compared to a profit of 33 billion yen from a year ago. The largest brokerage firm in Japan set aside $1.5 billion to cover bond insurance losses. Nomura fell 12% and dragged Daiwa Securities 9% as well. Quarterly trading revenue declined 80%. For the year 2007 Nomura reported a loss of 68 billion yen compared to a gain of 176 billion yen in 2006.

Honda reported revenue declined 1% in the second quarter to 3.06 trillion yen for the quarter ended in March. Earnings fell 86% to 25.4 billion yen from 176.2 billion yen and earnings per share declined to 14.01 yen from 96.70 yen a year ago.

Honda earnings plunged after the company set aside 80 billion yen to cover tax investigation involving income from its operations in China.

NTT DoCoMo after it forecasted smaller than expected rise in earnings for the current fiscal year. Earnings in the fiscal year are expected to rise 2% 503 billion yen compared to 491.2 billion yen. The current promotion running since November of 2007 is expected to lower revenue per subscriber and the company battles competition from KDDI and Softbank.

NTT DoCoMo for the year ended 2007 net income gained 7.4% to 491.2 billion yen and sales declined 1.6% to 4.71 trillion yen.