Insurance Income Boosts Hoya’s 1Q 2012 Profits

TOKYO—Despite heavy losses suffered by the flooding of its spectacle lens manufacturing operations in Thailand, Hoya Corp. (TOKYO: 7741) still generated significant profits in the first quarter ended June 30, 2012.

Hoya reported revenue of 92,615 million yen for the first quarter, a 0.6 percent decrease compared with the same period last year. Profit before tax increased 47.0 percent to 25,816 million yen, and profit for the term increased 51.0 percent to 23,197 million yen. The significant increase of the profits is due to the insurance income of 11,308 million yen to compensate for losses in the lens production facilities caused by the flooding in Thailand, according to Hoya.

“The eyeglass lens factories in Thailand are now operating at about 70 percent of its capacity recovering from the flood damage, and will be fully operational by the end of September,” said Hiroshi Suzuki, chief executive officer of Hoya. “There is growing uncertainty in the world economy, and in response to this, we are reforming resources in targeting region and business to maintain our competitiveness.”

Hoya reported that sales in its Life Care segment, which produces eyeglass lenses, contact lenses and intraocular lenses, stood at 47,357 million yen, down 9.4 percent year on year. Segment income amounted to 19,526 million yen, up 87.4 percent year on year, given the recording of insurance income for the plant in Thailand and gains related to the phased acquisition of shares of a subsidiary.