TOYKO—Hoya Corp. [Nikkei: 7741.T] posted gains in the first quarter ended June 30, despite softness in its eyeglass lens business both domestically and overseas. Hoya reported net sales of 130.1 billion yen for the quarter, an increase of 33.1 percent over the first quarter of 2007.

Net income for the first quarter was 21.1 billion yen, a 24 percent increase compared with the first quarter of 2007, primarily due to profits on sale of NH Techno Glass stocks, Hoya’s equity method affiliate, an announcement said.

In Hoya’s vision care section, the company said sales of eyeglass lenses in the domestic market have continuously been in a slump due to price decline in the market. In overseas markets, in addition to the economic slowdown, competition with lower price lenses has gradually increased. Net sales totaled 30,899 yen, down 4.8 percent from first quarter 2007.

In Hoya’s health care section, sales of contact lenses have increased through the consulting sales and pricing strategies at its directly-owned stores. IOL (intraocular lens) showed a favorable trend for the soft lens. Sales increased for both businesses in comparison to the same period of the previous year. Net sales totaled 12,369 yen, up 10.2 percent from year ago.

"Shrinkage of the semiconductor market and severe price competition of optical lens business had a negative impact on our first quarter 2008,” said Hiroshi Suzuki, chief executive officer of Hoya. “The market will continue to be weak, however, our business tends to be better in the second half. We will focus on endoscopic system as well as eyeglasses and contact lenses to achieve further growth."