Hoya Corp. said that it expects to report about JPY 15 billion in group operating profit for the July-September period, an increase of 60% compared to the April-June quarter, thanks to strong sales of…
Hoya Corp. said that it expects to report about JPY 15 billion in group operating profit for the July-September period, an increase of 60% compared to the April-June quarter, thanks to strong sales of hard-disk drive materials, and that revenue is also increasing 10%, reaching JPY 103 billion. Glass substrates for hard-disk drives are continuing at full production thanks to higher demand, while yields are improving. Sales of other key products, such as semiconductor manufacturing materials and digital camera lenses, are also expected to be higher than earlier forecasts. Hoya“s Pentax division, which makes digital cameras and endoscopes, looks as if it has moved into the black on an operating basis for the first time in seven quarters, mainly due to a restructuring of the digital camera business, including paring fixed expenses by reducing the work force. Group revenue for the April-September half is foreseen at about 80% of the amount in the same period in 2008, with operating profit only 60% of the 2008 figure. However, free cash flow is expected to remain positive thanks to cutbacks in expenditures and capital spending. Hoy“s midyear dividend is expected to be about JPY 30 per share, on a par with the year-earlier period.