Omron Shares Slump After Guidance Cut on Weaker Chip, EV Investments
By Kosaku Narioka
Omron shares fell sharply after the Japanese electronics maker cut its fiscal-year earnings guidance, citing weaker investment activities for chips and electric vehicles and China's economic slowdown.
Shares were recently 15% lower at 5,551 yen on Tuesday morning.
Omron said after Monday's market close that it expects net profit to fall 98% to Y1.50 billion ($10.1 million) for the year ending March, down from its previous projection of Y18.0 billion in net profit.
It projected fiscal-year revenue to drop 7.5% to Y810.00 billion, down from its previous forecast of Y850.00 billion.
Omron said weak demand for semiconductor-related investment is weighing on its industrial automation business, and demand for capital investment for EVs and rechargeable batteries would be lower than previously projected.
A slowdown in the Chinese economy would also weigh on demand for general-purpose equipment and other products, it said.
For the nine months ended Dec. 31, net profit dropped 84% to Y7.85 billion as revenue fell 4.7% to Y607.985 billion.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
February 05, 2024 22:30 ET (03:30 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s Happening in the Markets This Week
-
Worst-Performing Stock ETFs of the Quarter
-
Q3 in Review and Q4 2024 Market Outlook
-
Top-Performing Stock ETFs of the Quarter
-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue
-
Industrials: Many Stocks Overvalued After Q3 Outperformance
-
Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities
-
What the Election Could Mean for Big Tech Stocks
-
3 Lessons From Recent Stock Market Drama
-
Consumer Cyclicals: Even Amid Moderating Consumer Spending, We See Discounts
-
Healthcare: Valuations Look Fair Overall, With Select Industries Still Undervalued
-
Utilities: Falling Interest Rates, Growth Outlook Boosting Stocks