TOKYO -(Dow Jones)- Nintendo Co. (7974.OK) said Thursday said it swung to a net loss in the April-June period as the yen's strength hurt overseas operations, which accounted for 87% of the Japanese game console maker's group revenue in the quarter.
Nintendo's weak result is the latest sign that the stubbornly strong yen is weighing on Japanese exporters by cancelling out the benefits of cost cuts and recovering consumer demand.
Nintendo said it posted a group net loss of Y25.22 billion in the fiscal first quarter, compared with a net profit of Y42.32 billion in the same period a year earlier.
Operating profit fell to Y23.34 billion from Y40.40 billion, while revenue dropped to Y188.65 billion from Y253.50 billion.
The stronger yen eroded Nintendo's sales and operating profits overseas. The company said the yen's appreciation also caused an asset valuation loss of Y70.5 billion.
The company noted that the lower prices of its Nintendo DS series portable game machines in Japan and Europe weighed on profits.
For the full fiscal year through March, Nintendo continues to forecast a net profit of Y200 billion and an operating profit of Y320 billion on revenue of Y1.4 trillion.
Copyright © 2010 Dow Jones Newswires
