Nikon (NINOY) Q1 Earnings Fall Y/Y, Revenues Remain Soft
Zacks Investment Research | Aug 04, 2017 08:51AM ET
Nikon Corporation’s (OTC:NINOY) first-quarter fiscal 2018 earnings declined significantly over the comparable quarter last fiscal, as the company generated a net profit of ¥8.9 billion ($80.7 million) compared with profit of¥14.7 billion last year. Earnings per share came in at¥22.37, down 39.7% year over year.
Operating income too decreased 31.1% year over year to ¥12.4 billion ($65.1 million).
Inside the Headlines
In the quarter, Nikon’s net sales inched up 0.6% year over year to ¥170.3 billion ($1.5 billion). The top line was positively impacted by increase in unit sales from FPD and Semiconductor lithography, which was somewhat offset by soft digital camera sales, change in product mix of new DSLRs and delayed budget execution by governments.
Sales for the Precision Equipment Business climbed 6.6% year over year to ¥55.2 billion ($500.7 million).The unit enjoyed remarkable growth in the FPD Lithography System field, which benefited from the broad-based strength in capital investments. However, operating income at the segment fell to ¥13.1 billion compared to ¥14.8 billion in the prior-year quarter due to lower unit sales in the FPD Lithography System field.
However, the Imaging Products Business witnessed a steady decline in both sales and profits, as the top line edged down 0.8% over first-quarter fiscal 2017 to ¥90.9 billion ($824.6 million). The unit saw a turnaround in the shrinking digital camera market, as the compact digital camera market improved year over year. Operating income at the segment also fell to ¥7.6 billion, down 24.8% from ¥10.1 billion in the year-ago period, due to adverse product mix.
The Instruments Business displayed nearly flat growth, with the top line coming in at ¥13.5 billion ($122.5 million), up from sales of ¥13.4 billion recorded last quarter. The microscope-related field’s performance was weak due to delayed budget execution by the U.S. and China governments and other factors, and adverse foreign currency translation impact further hampered revenues. However, in the industrial metrology field, the company recorded improved sales in the U.S. and Asia. The segment recorded an operating loss of ¥2.4 billion compared with a loss of ¥1.2 billion in the prior fiscal quarter, due to higher upfront investments and expenses related to sales expansion initiatives.
The new Medical Business posted sales of ¥4.7 billion ($42.6 million) in the quarter, up from ¥4.2 billion recorded in the year-ago period. Optos Plc's retinal diagnostic imaging equipment exhibited solid performance in North America, which drove revenues.This segment also recorded an operating loss of ¥1.1 billion, slightly wider than the ¥0.6-billion loss in the prior-year quarter, hurt by upfront investments.
Lastly, the Other Businesses segment net sales grew 9.4% year over year at ¥5.8 billion ($52.6 million).
Liquidity & Cash Flow
As of Jun 30, 2017, Nikon’s cash and cash equivalents were ¥309.2 billion ($2.8 billion), down from ¥319.1 billion recorded on Mar 31, 2017.
Long-term liabilities (which include Bonds and Long-term loans) totaled ¥137.7 billion ($1.2 billion), marginally down from ¥138.3 billion a year ago.
Nikon Corp. Price, Consensus and EPS Surprise
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