NEC Corp. shares rose sharply Monday morning after it posted a 29% increase in fiscal-year operating profit on strong demand for information-technology services and projected further earnings growth.
The shares 6701, +13.82% closed the morning session 14% higher at 5,940 yen after rising as much as 16% earlier.
The Japanese information-technology and electronics company said Friday after market close that operating profit increased to Y170.45 billion ($1.25 billion) for the fiscal year ended March 31, from Y132.525 billion the previous fiscal year.
Revenue rose 9.9% to Y3.313 trillion, thanks to greater demand for information-technology services across various industries. Net profit dropped 19% to Y114.50 billion due to higher tax expenses.
Adjusted operating profit from NEC’s enterprise segment climbed 28% to Y73.4 billion owing to higher sales to financial, manufacturing, retail and services clients. Adjusted operating profit from its global segment jumped 63% to Y42.9 billion due partly to the software and submarine businesses.
For the fiscal year that started in April, NEC projected revenue to rise 2.0% to Y3.380 trillion and adjusted operating profit to increase 7.0% to Y220.00 billion.
This article was originally published by Marketwatch.com. Read the original article here.