Telecommunications
ò Softbank Corp is to form a joint venture with Alibaba.com that links Japanese small businesses to trading partners in China. Alibaba.com. said the new company will take over the operation of Alibaba.com's existing Japanese language site. Alibaba Group has built a global community of close to 30 million members from over 240 countries and regions. Japan has more than 4 million small and medium enterprises, which account for 25% of the country's export value and 63% of its import value.
ò Nippon Telegraph and Telephone Corp is expected to post operating profit of 1.15 trillion yen ($11 billion) to 1.20 trillion yen ($11 billion) in the current year to March 2009, down 100 billion yen ($955 million) from the previous year. The decline is due to special factors that boosted its profit by 190 billion yen ($2 billion) in the past year to March, including capital gains from the return of pension funds which it managed on behalf of the government. The company's operating profit for the year ended March 31 likely jumped 17% to about 1.3 trillion yen ($12 billion), topping its previous projection of 1.26 trillion ($12 billion).
ò Nippon Telegraph & Telephone CorpÆs shares rose the most in 9 1/2 years in Tokyo trading after the company said it will increase its dividend payment and share buybacks this year. NTT climbed 11% to close at 498,000 yen on the Tokyo Stock Exchange, its biggest gain since October 1998. UBS AG raised its rating on the company to ôbuyö from ôneutral,ö citing the ôsurpriseö dividend increase. Nomura Holdings Inc upgraded the stock to ôstrong buyö from ôbuy.ö The company raised its annual dividend payment to 11,000 yen ($105) a share, from 9,000 yen ($86) a year earlier. NTT plans to buy back up to 3.3% of its outstanding shares for as much as 200 billion yen ($1.9 billion), or double the previous year's plan.
Hardware
ò Fujitsu Ltd reported its operating profit rose 12.6% in the past year to March, helped by brisk sales of personal computers. The company expects the momentum to continue this year despite a stronger yen. Operating profit grew to 204.99 billion yen ($2 billion) from 182.09 billion yen ($2 billion) in the year earlier. Revenue increased 4.5% to 5.33 trillion yen ($51 billion) . The company booked a one-time cost of about 22 billion yen ($210 million) to restructure its large scale integrated (LSI) circuit operation and write down the segment's impaired assets.
ò Japanese precision equipment maker Nikon Corp said its annual profit rose 32.5%, boosted by sales of its advanced cameras and chip-making equipment, but its outlook missed forecasts. Operating profit was 135.2 billion yen ($1.3 billion) in the year ended March 31, up from 102 billion yen ($974 million) a year earlier. That compares with a mean market estimate of 135.7 billion yen ($1.3 billion) based on 17 brokerages surveyed by Reuters Estimates. While hit by a stronger yen, Nikon is coasting on solid sales of its digital single-lens reflex (DSLR) cameras, while focusing on raising profits from its compact cameras rather than seeking market share.
ò Kenwood Corp and Victor of Japan forecast their operating profit will quadruple in three years after combining their operations this October. Operating profit will climb to 39 billion yen ($376 million) in the 12 months to March 2011. Total operating profit of the two companies was 9.6 billion yen in the year ended March 31. Kenwood and Victor plan to achieve annual sales of 830 billion yen ($8 billion) in the year to March 2011.
ò Sony Corp reported profit rose more than it projected after selling buildings, chip-making assets and shares of its financial unit. Net income in the 12 months ended March 31 almost tripled to a record 369.4 billion yen ($3.5 billion), beating its 340 billion yen forecast. Sony predicted profit will fall 22% to 290 billion yen ($3 billion) this fiscal year. Lower earnings this year may increase the pressure on Chairman Howard Stringer, 66, to deliver products that can outsell Nintendo Co's Wii and Apple Inc's iPod.
ò NEC Electronics Corp forecast a half-year net loss of 2 billion yen ($19 million) for next year, after improving net loss from 41.5 billion yen ($396 million) to 16 billion yen ($153 million) for the year to March 31, 2008. Revenue was down 0.7% to 687.7 billion yen ($6.6 billion). Operating loss improved from 28.6 billion yen ($272.9 million) to a profit of 5.1 billion yen ($48.7 million) and pre-tax loss improved from 35.4 billion yen ($337.8 million) to 3.3 billion yen ($31.5 million). A half-year revenue of 335 billion yen ($3.2 billion) is forecast, with a full-year breakeven net profit projected on revenue of 685 billion yen ($6.5 billion) to March 31, 2009.
Media, Entertainment and Gaming
ò Konami Corp said its net profit grew 13% in the year to March 2008, boosted by stronger sales of its video games. Net profit rose to 18.3 billion yen ($175 million) from 16.2 billion yen ($155 million) the year before, which develops software for computer games. Operating profit jumped 20.2% to 33.8 billion yen ($323 million). Revenue rose 6.1% to 297.4 billion yen ($2.8 billion). Profit at its work-out facility management business and in its gaming machine segment also improved.
Korea
Telecommunications
ò SK Telecom will invest $7.8 million in a 30% stake in the Hong Kong unit of Shanghai-based online gaming company Magicgrids Networks. Established in 2006, Magicgrids Networks has been developing and publishing advanced online games. Recently, the company successfully built a distribution and marketing network for nationwide publishing service in China. SK Telecom plans to participate in the management of the target company and said the move is aimed at actively tapping China's fast growing online gaming market.
Hardware
ò Shares of Samsung Electronics Co Ltd set a fresh record with investors being positive about the company's new management line-up following the resignation of its scandal-tainted chairman Lee Kun-Hee. Samsung Electronics stock was last up 1.8% at 751,000 won ($722.3), after climbing to an all-time high of 753,000 won ($724.2). The stock has soared about 51% since its October low of 500,000 won ($480.9). The company appointed Lee Yoon-woo to replace Yun Jong-yong as vice chairman and chief executive officer.
ò Samsung Electronics Co ranked first in March in terms of sales of liquid crystal display (LCD) panels worldwide. Samsung Electronics sold a total of $1.92 billion worth of LCD panels during the month, followed by its Taiwanese rival AU Optronics with $1.54 billion. Samsung explained that the company's strong performance in March was due to its aggressive investment aimed at preempting fast-growing large LCD panel markets.
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