NOK earnings rise 24% despite pressure on sales

Tokyo – Japan’s NOK Group posted net sales  for its fiscal first quarter (1 Apr – 30 June) down 8.7% to Yen171,866 million but operating income up 23.9% to Yen7,002 million.

At NOK’s Seal business, net sales came in 1.8% higher at Yen89,301 million, while operating income rose 40.0% year-on-year to total Yen6,293 million.

While a stronger yen had a negative impact, sales increased overall due to higher automotive vehicle production in Japan, and increased demand for general industrial machinery, particularly construction machinery.

Operating income increased mainly due to the increase in sales as well as the promotion of price revision activities such as passing on selling prices, the group added.

NOK’s Electronic product business reported first quarter net sales of Yen74,493 million, down 19.0% year on year, and operating income  down 39.2% at Yen263 million.

The sales decline reflected the negative forex impact as well as a decline of component costs included in sales, continued the 5 Aug results statement.

Segment sales for automobile applications decreased, sales for smartphones increased slightly, while sales for hard disk drives decreased slightly.

Operating income decreased mainly due to the decrease in net sales to the electronics sector and an increase in fixed costs, the group commented.

NOK’s ‘Other businesses’ recorded net sales of Yen8,071 million, down 5.7% year-on-year, and operating income at Yen446 million, 37.8% lower than the same period last year.