Rohm upgraded its earnings forecast for the April-September half, raising guidance for net profit to 19 billion yen ($178 million), up 55% on the year and some 9 billion yen higher than previously predicted.
Sales of the Japanese electronic parts maker’s mainstay system chips for cars and smartphones grew more than expected. The depreciating yen also gave a boost to profit.
Rohm now expects sales to rise 8% to 182 billion yen, exceeding the earlier forecast by 5 billion yen. Sales of the company’s power supply system chip and LED products climbed amid a solid business climate for carmakers and exporters. Smartphone- and tablet-geared products fared well in Asia.
In April, Rohm assumed an exchange rate of 100 yen to the dollar. But the yen depreciated through late September to the 109-yen range against the dollar. The resulting valuation increase in foreign-currency-denominated claims added just over 5 billion yen in nonoperating income.
The company sees pretax profit soaring 61% to 27 billion yen, much better than the previous guidance of a 24% drop to 12.8 billion yen.
Rohm went through a period of turbulent earnings in the past, ending fiscal 2012 with a net loss of 52.4 billion yen, after facing a drop in demand for personal computers. It restructured through last fiscal year, downsizing personnel and factories, and has shifted more resources to its promising products for cars.
The company will announce updated forecasts for the fiscal year ending in March on Nov. 6, when it announces first-half results. Rohm will likely upgrade its forecast of a 35% net profit decrease to 21 billion yen.
