- Wednesday, October 16, 2024
Shares of Fanuc Corp., a leading Japanese industrial robot maker, took a sharp downturn on Monday as the company reported lower quarterly profit and adjusted its full-year guidance. The primary reason cited for the decline in performance was the weakness observed in its China business.
As of Monday morning, Fanuc Corp.'s shares had dropped by 6.9%, reaching 4,365 yen. At one point, the decrease was as much as 9.2% before slightly recovering.
According to the company, its net profit for the quarter ending in June fell by 28% compared to the previous year, amounting to Y30.32 billion ($214.8 million). Additionally, first-quarter revenue experienced a decline of 4.6%, reaching Y201.77 billion. This decrease was primarily driven by deteriorating conditions in China, Japan, and the rest of Asia.
Fanuc Corp. acknowledged that although the chip shortage has eased to some extent, it anticipates clients to continue inventory control measures due to concerns about a potential global economic slowdown.
The company revealed that its first-quarter orders received for China plummeted by 41%, amounting to Y36.5 billion in comparison to the preceding quarter.
As a result of these challenging circumstances, Fanuc Corp. has revised its revenue and net profit projections for the fiscal year ending in March 2024. The company now predicts a 12% decrease in revenue to Y750.30 billion, down from its previous forecast of Y819.50 billion. Correspondingly, net profit is projected to fall by 34% to Y113.10 billion, down from Y137.10 billion predicted earlier.
Fanuc Corp. recognizes the obstacles ahead but remains committed to adapting to changing market conditions and striving for continued success in the industrial robot manufacturing sector.
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