Nitto Denko Shares Gain on 9-Month Profit, Forecast Increase

Feb. 1 (Bloomberg) -- Nitto Denko Corp. rose the most in five months after it posted a higher nine-month profit and raised its full-year forecast on demand for film used in liquid-crystal displays panels and a weaker yen.

The stock rose 5.5 percent to 4,315 yen as of 10:28 a.m. on the Tokyo Stock Exchange, the biggest increase since Sept. 2. Osaka-based Nitto Denko has risen 13 percent this year, while the benchmark Topix index has increased 1.7 percent.

Net income is expected to be 58 billion yen ($707 million) in the year ending March, compared with a previous forecast of 50 billion yen, on increasing demand for touch panels used in smart phones and tablet PCs, Nitto Denko said yesterday in a statement after markets closed. The company also cited a weaker-than-expected yen for the increased forecast.

In the nine months ended Dec. 31, profit rose 44 percent from a year earlier to 45.2 billion yen. Sales increased 7.2 percent.

To contact the reporter on this story: Masatsugu Horie in Osaka at mhorie3@bloomberg.net

To contact the editor responsible for this story: Drew Gibson at dgibson2@bloomberg.net