By Kosaku Narioka
Sumitomo Electric Industries shares rose sharply after it raised fiscal-year earnings guidance, citing a recovery in auto production and a weaker yen.
The company’s shares were recently 11% higher at 1,800.0 yen after rising as much as 12% earlier Monday morning.
Sumitomo Electric Industries said Thursday after market close that it projects net profit will decline 2.4% to Y110.00 billion ($735.6 million) in the fiscal year ending March 2024, up from its previous forecast of Y100.00 billion. Japanese market were closed Friday for a national holiday.
The Japanese company said the first-half results were stronger than previously expected as car production increased, boosting demand for parts, thanks to an easing of chip shortages. A weaker yen also supported earnings, it said.
Net profit dropped 24% to Y26.70 billion for the six months ended Sept. 30 as borrowing costs rose and gains from assets sales declined from a year earlier.
First-half revenue grew 9.6% to Y2,072 trillion thanks to increased sales of wire harnesses, anti-vibration rubber and power cables, it said.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
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