Nikon doubles April-Dec profit on strong sales of high-end digital cameras

Nikon doubles April-Dec profit on strong sales of high-end digital cameras

	Published : Mon, 05 Feb 2007 10:27 By : Agencies Print this Story

TOKYO (XFN-ASIA) - Nikon Corp said it nearly doubled its net profit in the nine months to December compared with a year ago, as sales expanded, mostly in high-end digital cameras and value-added testing equipment for semiconductors.

Net profit in the nine-month period shot up 93.7 pct year-on-year to 46.2 bln yen.

A weaker yen, as well as successful efforts to concentrate on the higher-margin products, helped buoy profits at the Japanese maker of digital cameras and precision equipment, it said.

To reflect the robust footing, Nikon lifted its earnings projections for the full year to March, highlighting the likelihood of achieving its year to March 2009 profit targets two years early.

'Some of our revised earnings estimates for this fiscal year already exceed our medium-term goals. We will review them and will announce any possible change in May when we report results for the full year,' Nikon chief financial officer Ichiro Terato told a news conference.

Nikon, which makes single-lens reflex (SLR) digital cameras and testers for integrated circuits, said its net profit surged 93.7 pct to 46.20 bln yen in the nine months to December.

Its April-December revenue increased 14.1 pct on the year to 611.60 bln yen, while operating profit jumped 67.4 pct to 80.60 bln yen.

The sales of SLR digital cameras expanded to 1.43 mln units in the nine months to December from 1.03 mln units a year ago. Those of the compact digital cameras, on which profit margins have been thinned by fierce competition, fell to 4.66 mln units from 5.45 mln units similarly.

'We feel that the base of SLR camera users has broadened,' Terato said.

Nikon sold 64 liquid crystal display testers in the nine months, down from 49 the year before, while the sales of IC chip testers dropped to 124 from 132.

'We adopt the policy of not pursuing volume at the expense of profits,' Terato said.

For the full year to March 31, Nikon now forecasts net profit of 51 bln yen, up from 45 bln forecast previously, and revenue of 800 bln yen, up from 797 bln.

It also lifted its operating profit estimate to 95.0 bln yen from 87.0 bln and current profit estimate to 82 bln yen from 74 bln for the fiscal year. These new projections exceed the company's year to March 2009 targets of 90 bln yen in operating profit and 80 bln yen in current profit. Revenue target for the year to March 2009 is still higher at 900 bln yen.

Nikon, which generates most of its revenue in foreign currencies, now expects the dollar to average 115 yen and the euro 150 in the current year ending March, compared with the dollar at 110 yen and the euro at 135 yen projected earlier, it said.

(1 usd = 120.80 yen)

yumiko.nishitani@xfn.com