Hoya Corp. saw its net profit jump by 82.6 percent to 16,671 million yen (€151.6m-$162.6m) in the three months of its second quarter ended Sept. 30 as total revenues increased by 15.8 percent to 78.49 billion yen (€572.5m-$765.4m), boosted by strong world demand for home and digital appliances. The group's operating margin shot up to 31.1 percent, but the margin of its vision care segment increased to only 17.4 percent from the 17.0 percent level of a year ago. The health care segment, which includes contact lenses and intraocular devices, improved its quarterly operating margin from 23.2 to 24.6 percent.
Revenues declined by 4.1 percent to 23.8 million yen (€0.2m-$0.2m) in the vision care division, but Hoya confirms that the protracted slump in the Japanese market seems to have it the bottom, leading to a 3.7 percent increase in domestic sales for the quarter. While representing 61.1 percent of the business, foreign sales of vision care products fell by 8.8 percent, mainly due to the strength of the euro and to the weakness of the important German market. Sales of health care products rose by 11.1 percent to 8,084 million yen (€59.0m-$78.8m), with increases of 10 percent at home and 146.6 percent abroad.
For the first six months of the financial year, Hoya's sales of vision care products are down by 5.0 percent to 46.66 billion yen (€340.3m-$455.0m), but the operating margin is up sharply to 17.3 percent from 15.9 percent. Sales are up 2.9 percent at home and down 9.5 percent abroad. The company continues to promote heavily progressive lenses and other value-added products, partly to fend off strong domestic competition in the lower price ranges.