Nikon shares experienced a significant decline on Wednesday morning following the announcement of a 78% drop in its first-quarter net profit. This decrease can be attributed to a weaker demand for parts and devices used in display and chip production.
As of now, the shares are 13% lower at 1,602.0 yen after a previous decrease of 21%.
In a recent statement issued after the market closed on Tuesday, Nikon revealed that its net profit for the quarter ended June 30 plummeted to Y2.58 billion ($18.0 million), a substantial decrease from Y11.87 billion reported during the same period last year.
While the company's first-quarter revenue increased by 8.6% from the previous year to Y158.15 billion, primarily due to strong sales of cameras and medical equipment, their operating profit experienced a significant decline of 79% to Y3.29 billion. This decline is mainly attributed to lower sales of flat-panel-display lithography equipment, weaker demand for optics parts used in semiconductor production, and costs associated with the acquisition of German maker of 3D metal printers SLM Solutions Group earlier this year.
Despite the decline in profit, Nikon has maintained its net-profit forecast for the fiscal year ending in March. The company expects weaker services revenue from semiconductor lithography equipment, despite stronger camera sales. They anticipate that the net profit will drop by 22% to Y35.00 billion.
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