NOK Corp downgrades forecasts

ERJ staff report (DS)

Tokyo -- NOK Corp, long-time partner of Germany's Freudenberg Group, has revised downwards its forecasts for the year, based on global uncertainty, and the after-effects of Japan's Great Tohoku earthquake and tsunami. The announcement coincided with the release of NOK's results for the six months to 30 Sept 2011.

NOK now expects net income for the 12 months to 31 March 2012 to be roughly a third lower than it previously said. It expects full-year sales to be around yen 494 billion (euro 4678 million), down 3.2 perent on the previous forecast of yen 511 billion. Operating income is expected to be yesm 28.1 billion compared with a previous forecast of yen 35.2 billion.

In the three months to 30 Sept, NOK reported sales down 4.2 percent at yen 238.6 billion (euro 2260 million) and operating income of yen 13.3 billion.

The company said sales had been affected by a significant decline in demand from the automotive industry.

NOK said, the seals business saw a decline in sales in the first quarter, due to the after-effected of the earthquake. This bounced back in the second quarter. As a results, sales were down year-on-Year by only 1.3 percent at yen 126 billion. Operating income fell 2.7 percent to yen 11.98 billion.

In the roll covering business, NOK said sales fell following the earthquake, though repair work increased. Divisional sales fell 11.7 percent to yen 15.12 billion, which resulted in an operating loss of yen 345 million, compared with an operating loss of yen 197 million a year earlier

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Press release from NOK Corp.