Asics Corp. reported robust gains in earnings in the fiscal second quarter ended Sept. 30 but results still fell short of prior forecasts due to lower-than-expected sales in Japan as well as changes in foreign exchange rates.
Net income for the Japanese footwear giant climbed 40.3% to ¥2.07 billion ($24 mm) from ¥1.47 billion in Q2 last year. Operating income was up 4.5% to ¥4.39 billion ($51 mm) from ¥4.20 billion in the year-ago period.
Overall global revenues rose 2.0% to ¥56.99 billion ($664 million) from ¥55.86 billion a year ago.
Revenues in the domestic Japan business was up 2.1% to ¥28.49 billion ($332 mm) versus ¥27.91 billion ($298 mm) in the year-ago quarter. Operating income in the region was down 4.6% to ¥545 million ($8 mm).
The Americas posted a 15.1% sales increase to ¥16.90 billion ($197 mm) from ¥14.68 billion ($157 mm) in the year-ago period. Operating profits in the region surged 25.1% to ¥1.32 billion ($15 mm) versus ¥1.05 billion
($11 mm) in fiscal Q2 last year. In U.S. dollar terms, revenues in the Americas region jumped 26% for the period and operating income increased 36% for the quarter.
In Europe, revenues declined 8.3% to ¥12.19 billion ($142 mm) and operating income slipped 7.5% to ¥1.49 billion ($17 mm). Asia Pacific revenues jumped 17.9% to ¥6.04 billion ($70 mm) and operating profit surged 47.0% to ¥1.04 billion ($12 mm).
In a statement concerning the six-month year-to-date period, Asics officials said the global economy “recovered at a moderate pace, but conditions remained difficult amid persistently high unemployment rates and concerns that economies such as those of Europe and North America could take a turn for the worse.’
Although the Japanese economy also picked up, owing to a recovery in corporate earnings and a pickup in capital investment, difficult conditions continued due to deflation, the strengthening yen and other factors.
Looking ahead, Asics sees revenues reaching ¥237 billion in the year ended March 31, 2011, representing a gain of 5.6% versus the prior fiscal year. Operating earnings are expected to climb 16.6% to ¥20.5 billion while net income is forecast to climb 20.1% to ¥10.0 billion. Compared to the forecast provided when releasing fiscal first quarter results on Aug. 4, sales were adjusted slightly higher versus ¥231 billion forecast previously, the operating income forecast was the same at ¥20.5 billion, and net income was adjusted downward from ¥11.5 billion.
