Shares of Fanuc Corp., a Japanese maker of robots and other machinery, slid by the most since April after the firm cut its profit outlook on part-supply difficulties and a weak outlook for Chinese business.
(Bloomberg) — Shares of Fanuc Corp., a Japanese maker of robots and other machinery, slid by the most since April after the firm cut its profit outlook on part-supply difficulties and a weak outlook for Chinese business.
The stock dropped as much as 8.3%, weighing down peers such as Keyence Corp., which reports earnings later Friday, and Yaskawa Electric Corp. The trio, keenly watched by foreign investors, are all down more than 20% this year as rising US interest rates and recession fears batter the global tech sector.
Fanuc warned that demand for factory-automation equipment and its “robomachines” — which are used in making Apple Inc.’s iPhone and other products — is likely to slow “for the foreseeable future”. While orders for its robots remain strong, it’s having trouble getting necessary components.
The company lowered its operating profit forecast for the year ending March 2023 by 8.4% to ¥181.7 billion ($1.2 billion) on Thursday.
“Factory automation and robomachine segment demand and sales slowed more than expected, due to economic slowdown in China and a slump in the smartphone market,” Mitsubishi UFJ Morgan Stanley analyst Tsubasa Sasaki wrote in a note. The company is also still struggling with rising parts and logistics costs, he added.
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