Nintendo Raises Earnings Forecasts

Officials from Nintendo have announced that the company is raising its earnings outlook for the first half of the year, and now expects a profit of ¥46 billion ($414.4m) on sales of ¥185 billion ($1.67bn) for the six months from April to September 2004. Previous estimates had been for profits of ¥25 billion ($226m) on sales of ¥200 billion ($1.8bn). The company now expects ¥84 billion ($756.7m) in net profits for the current fiscal year, which is up 14% from the previous estimate. The sales forecast, though, remains static for the full year at ¥530 billion ($4.77bn). As is often the case with the company, the currency market has had a marked effect on final profit calculations - with the stronger dollar and euro, and weaker yen, accounting for the majority of the rise. The company’s considerable overseas holdings regularly see profits halving or doubling, from one period to the next, despite relatively even sales. Such results are often misconstrued as evidence of radically changing fortunes for the company, despite other evidence to the contrary.