Fanuc Shares Slump After Guidance Cut on Weakness in China Business
By Kosaku Narioka
Fanuc Corp. shares fell sharply Monday morning after the Japanese industrial robot maker posted lower quarterly profit and cut its full-year guidance due partly to weakness in its China business.
Shares were recently 6.9% lower at 4,365 yen after falling as much as 9.2% earlier.
Fanuc said after Friday's market close that net profit fell 28% from a year earlier to Y30.32 billion ($214.8 million) for the quarter ended June. First-quarter revenue dropped 4.6% to Y201.77 billion, dragged by declines in China, Japan and the rest of Asia.
The company said that while the shortage of chips has eased, it expects clients to continue to control their inventories for a longer time as concerns about a global economic slowdown remain.
Fanuc said orders received for China in its first quarter dropped 41% to Y36.5 billion from the previous quarter.
The company lowered its revenue and net profit projections for the year ending March 2024. It now expects revenue to drop 12% to Y750.30 billion, down from Y819.50 billion forecast previously, and net profit to fall 34% to Y113.10 billion, down from Y137.10 billion projected earlier.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
July 30, 2023 22:26 ET (02:26 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations