TOKYO—Hoya Corp. (Nikkei: 7741.T) announced net sales of 128.3 billion yen for the second quarter ended Sept. 30, 2008, up 27.1 percent from the second quarter of 2007. The increase mainly reflects the additional results of Pentax included in the scope of consolidation during the previous fiscal year, according to Hoya.

Operating income was 20.6 billion yen, a 23.2 percent decrease compared with 26.8 billion yen in the second quarter of 2007, due mainly to order decrease and the drop in the product price in global economic downturn. Net income for the second quarter was 19.1 billion yen, a 9.0 percent decrease compared with 21.0 billion yen in the same period of 2007.

For the first six months ending Sept. 30, 2008, net sales were 258.5 billion yen, a 30.1 percent growth compared with 198.7 billion yen in the same period of 2007. Operating income was 42.4 billion yen, a 14.2 decrease compared with 49.4 billion yen in the first half of 2007, while net income was 40.3 billion yen, a 5.8 increase compared with 38.1 billion yen in the same period of 2007.

“Shrinkage of the semiconductor market and severe price competition in overall business fields continues to have a negative impact on our second quarter 2008,” said Hiroshi Hamada, chief operating officer of Hoya. “The market will continue to be weak, however, we will promote expansion of our growth areas including eyeglass business, endoscopic system and contact lens retail business.”

Hoya’s vision care business, which consists of eyeglass lenses, generated net sales of 30,316 million yen, down 3.4 percent from year-ago. Sales of eyeglass lenses in the Japanese domestic market have continuously been in a slump due to price decline in the market. In overseas market, in addition to the economic slowdown, competition with lower price lenses has gradually increased. However, Hoya reported an increase in operating income for this segment resulting from a decline of production costs through foreign exchange effect and efficient production of special orders.

In the health care segment, which consists of contact lenses, Hoya’s net sales increased 8.4 percent from year-ago, to 12,914 million yen. According to Hoya, the increase resulted from consulting sales and pricing strategies at its directly-owned stores. ■