By Kosaku Narioka
Nikon shares fell sharply Wednesday morning after it posted a 78% drop in its first-quarter net profit due to weaker demand for parts and devices used in display and chip production.
The shares were recently 13% lower at 1,602.0 yen after falling as much as 21% earlier.
Nikon said Tuesday after market close that net profit dropped to Y2.58 billion ($18.0 million) for the quarter ended June 30 from Y11.87 billion a year earlier.
First-quarter revenue increased 8.6% from a year earlier to Y158.15 billion thanks to strong sales of cameras and medical equipment as well as the acquisition earlier this year of German maker of 3D metal printers SLM Solutions Group.
But operating profit dropped 79% to Y3.29 billion owing to lower sales of flat-panel-display lithography equipment, weaker demand for optics parts used in semiconductor production and costs related to the SLM acquisition.
Nikon kept its net-profit forecast unchanged for the fiscal year ending in March, as it expects weaker services revenue from semiconductor lithography equipment despite stronger camera sales. It continues to project net profit will drop 22% to Y35.00 billion.
Write to Kosaku Narioka at [email protected]
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