Oct. 29 (Bloomberg) -- Nikon Corp., the second-biggest maker of cameras used by professionals, narrowed its forecast for a full-year loss by 25 percent after its photography unit projected better than estimated earnings on rising exports.

Net loss will probably total 21 billion yen ($232 million) in the year to March 31, less than the 28 billion yen projected earlier and compared with a profit of 28.1 billion yen a year earlier, the Tokyo-based company said today.

Revenue was forecast at 760 billion yen, 7 percent more than the earlier estimate of 710 billion yen. That compares with sales of 879.7 billion yen in the year ended March. Operating loss, or sales minus the cost of goods sold and administrative expenses, will probably reach 18 billion yen, narrower than the previous 30 billion yen deficit projection. Operating profit totaled 48.2 billion yen a year earlier.

Sales and profit at Nikon’s imaging operations will probably outperform the company’s estimates for the first and second halves, Makoto Kimura, president of the division that contributed 68 percent of revenue in the previous fiscal year, said last month. Stronger demand in China and the accelerating recovery in U.S. and European sales are helping earnings, the 61-year-old executive said at the time.

Nikon shares fell 1.1 percent before the announcement to close at 1,671 yen on the Tokyo Stock Exchange. The stock has climbed 58 percent this year compared with a 12 percent advance by the benchmark Nikkei 225 Stock Average.

To contact the reporter on this story: Suresh Seshadri in Mumbai at Sseshadri1@bloomberg.net.

Last Updated: October 29, 2009 03:33 EDT