Seiko reports an increase of 62.1 percent to ¥287 million (€2.3m-$3.1m) in the operating losses of its optical products business for the third quarter ended last Dec. 31, as its sales declined by 10.4 percent to ¥18.2 billion (€144.6m-$195.0m). The higher losses were attributed to poor sales in Japan and the rising value of the yen.
In Europe, Seiko's sales to large chains increased steadily. In the U.S., sales to mass merchandisers were described as sluggish, but sales of low-priced items to specialty chains were robust. In the domestic Japanese market, sales volumes increased but average unit prices went down, reducing revenues and profits.
The Seiko group posted a sharply reduced operating profit of ¥26 million (€206,550-$278,550) on sales of ¥151.3 billion (€1.20bn-$1.62bn) for the quarter. It has forecast a net loss of ¥7.3 billion (€58.0m-$78.2m) and an operating profit of ¥1.1 billion (€8.7m-$11.8m) for the full financial year ended on March 31, with the optical products business keeping a steady operating loss of around ¥300 million (€2.4m-$3.2m) on 10.8 percent lower sales of ¥24.0 billion (€190.7m-$257.1m).