TOKYO—Japanese industrial rubber parts maker Nitta Corp. is sticking to its full-year sales and earnings forecasts following a mixed set of first quarter results.
For the three-month period to June 30, Nitta posted a 2.3-percent drop in operating income, to $10.7 million (Yen 1.466 billion) on net sales 2.3-percent higher year-on-year at $153.7 million.
The higher revenues included increased sales in Europe, as Nitta's overseas sales ratio grew to 31.7 percent, from 30.8 percent in the prior-year first quarter.
Belt and rubber product sales rose 28.4 percent in Europe and the U.S., helped by higher demand for belts from the logistics, textile machinery and paper converting industries.
By contrast, sales of hose and tube products fell 18.9 percent across the same two regions, largely due to reduced demand for tubes for automobiles in North America.
Nitta said first quarter operating income was impacted by soaring raw material prices and SG&A expenses. It also noted an "allowance for doubtful accounts for selling agency in Russia."