TOKYO--(BUSINESS WIRE)--HOYA Corporation (TOKYO:7741) today announced financial results for the first quarter ended June 30, 2017. During the quarter, revenues increased 10.4% year on year, reaching 127,158 million yen. Pre-tax profit amounted to 30,548 million yen with 25,193 million yen in profit, representing increases of 37.1% and 40.1%, respectively. In addition to higher profits stemming from greater sales, the Company also recorded foreign exchange gains. Profit before tax ratio was 24.0%, representing a year-on-year improvement of 4.7 points.
In the Life Care segment, the eyeglass lens business captured a greater share of the market growth in Asia, while growth in the Americas combined with acquisition of the 3M prescription protective eyewear business resulted in a significant jump in sales in that region. Medical endoscopes experienced higher sales overall, mainly due to the contribution of new products and stronger sales capacity in Europe and Asia. Sales of intraocular lenses for cataracts continued to perform well by a significant margin. As a result, sales for the Life Care segment grew 8.4% year-on-year, reaching 82,814 million yen. Segment profit fell 1.2% to 14,082 million yen, mainly due to advanced costs incurred to secure higher growth.
In the Information Technology segment, sales of mask blanks for semiconductors grew by a significant margin, mainly due to capturing active research and development demand. Sales of photomasks for LCDs fell year-on-year due to an incomplete recovery in demand for 4K TV panels and large-screen panels. Negative impact of the Kumamoto earthquakes continued as well. Glass substrates for hard disk drives experienced significant growth due to general demand increase and market share increase. Sales of imaging-related products grew overall due to increasing sales for surveillance cameras, in-vehicle cameras, and other new applications. As a result, sales for the Information Technology segment rose 15.2% year-on-year, reaching 43,551 million yen. Segment profit amounted to 16,668 million yen, an increase of 48.8% year-on-year.
“For the second quarter, we forecast sales increase and profit decline due to M&A related expenses in the Life Care segment,” said Hiroshi Suzuki, chief executive officer of HOYA. “We expect improvement in profitability toward the second half of this fiscal year.”
HOYA also announced the forecast for the first six months ending September 30, 2017 as shown below.
| Revenue and Profit before tax | Three months ended | Variance | |||||
| (Millions of Yen: Rounded off to the nearest million.) | Jun. 30, 2016 | Jun. 30, 2017 | (%) | ||||
| Revenue | 115,165 | 127,158 | 10.4 | ||||
| Profit before tax | 22,274 | 30,548 | 37.1 | ||||
| Ratio of profit before tax(%) | 19.3% | 24.0% | |||||
| Profit for the quarter | 17,978 | 25,193 | 40.1 | ||||
| Ratio of profit for the quarter(%) | 15.6% | 19.8% | |||||
| Profit attributable to owners of the Company | 17,908 | 25,119 | 40.3 | ||||
| Ratio of profit attributable to owners of the Company(%) | 15.5% | 19.8% | |||||
| Basic earnings per share (yen) | 45.28 | 64.71 | |||||
| Diluted earnings per share (yen) | 45.20 | 64.56 | |||||
| Projected Results for the First Half | Six months ended/ending | Variance | ||||
| (Millions of Yen: Rounded off to the nearest million.) | Sep. 30, 2016 | Sep. 30, 2017 | (%) | |||
| Revenue | 230,030 | 258,000 | 12.2 | |||
| Profit before tax | 53,911 | 59,000 | 9.4 | |||
| Profit for the term | 42,797 | 47,500 | 11.0 | |||
| Profit attributable to owners of the Company | 42,762 | 47,500 | 11.1 | |||
| Profit for the term per share (Yen) | 108.62 | 122.35 | ||||
*Results are preliminary and unaudited.
The full reports are available at http://www.hoya.com
About HOYA
Founded in 1941 in Tokyo, Japan, Hoya is a global med-tech company and the leading supplier of innovative high-tech and medical products. Hoya is active in the fields of healthcare and information technology providing eyeglasses, medical endoscopes, intraocular lenses, optical lenses as well as key components for semiconductor devices, LCD panels and HDDs. With over 150 offices and subsidiaries worldwide, Hoya currently employs a multinational workforce of over 36,000 people. For more information, please visit http://www.hoya.com.
