Quantum Materials Corp. (fka QTMM)

[chessmite]

Nitto Denko profit seen rising 19% on smartphone film sales


(Nitto Denko makes polarized film for LCD TV screens.)



OSAKA -- Nitto Denko is expected to report group operating profit of around 23 billion yen ($184 million) for the April-June quarter, up 19% from a year ago.

Direct comparisons cannot be made because the electronic parts manufacturer has switched to international accounting standards. But the first-quarter figure is the highest since a 24.7 billion yen operating profit in 2010 based on Japanese accounting standards. Growing sales of its films for smartphones and other mainstay components lifted profit.



Sales likely rose 7% to roughly 200 billion yen, with the weak yen contributing. The yen traded around 121 per dollar on average during the quarter, 19 yen weaker than a year ago. The company originally predicted the dollar would average 118 yen for the entire fiscal year. Each time Japan's currency softens by 1 yen against the greenback, Nitto Denko's profit rises by about 2 billion yen.

The optronics business earned 80% of the operating profit. The company commands a large share in polarizers for displaying images and conductive film placed on touch panels. Sales grew as screens on smartphones and other devices became larger. New films allowing those devices to be thinner and lighter also did well.

Robust earnings by major clients like Apple also lifted Nitto Denko, as sales of the iPhone 6 and other products remained strong.

Earnings from Nitto Denko's industrial tape for car electrical components absorbed increased development costs. The company's medical operation expanded orders from U.S. biopharmaceutical firms.

Nitto Denko is to release its April-June report Friday. The company foresees 5% year-on-year sales growth to 870 billion yen and a 12% increase in operating profit to 120 billion yen for the year ending March 2016.

However, Samsung's sales of its newest smartphone are falling short of expectations, and weaker demand from China is feared. "We are monitoring the impact of China's consumer spending slowdown," Nitto Denko said.

But Nitto Denko is expected to retain its fiscal 2015 forecasts based on the weaker-than-expected yen and because the company manufactures much of its optical films domestically.

http://asia.nikkei.com/Markets/Tokyo-Market/Nitto-Denko-profit-seen-rising-19-on-smartphone-film-sales

.....it will be interesting to see what comes out of the FDA between QMC & Nitto Denko


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