- Wednesday, October 16, 2024
By Kosaku Narioka
Fujitsu General, a Japanese manufacturer of air-conditioners and electronics equipment, saw a sharp decline in its shares after revising its fiscal-year earnings forecasts. The company cited weaker sales in North America and Europe as the main cause for this downward revision.
At present, shares are 4.0% lower, trading at 2,123.0 yen. Earlier in the day, they had fallen as much as 7.1%.
In a statement released after trading closed on Thursday, Fujitsu General explained that the market recovery for air-conditioners in North America, Europe, and the Middle East has been slower than expected. Additionally, it stated that it is taking longer for the high levels of inventory in the distribution channel to decrease.
The negative impact of weaker sales is outweighing any positive effects resulting from lower material costs, according to the company.
Fujitsu General now predicts a 42% drop in net profit to 5.00 billion yen ($33.9 million) for the fiscal year ending in March. This is significantly lower than the previous forecast of Y12.00 billion. The company also expects revenue to decrease by 16% to Y310.00 billion, down from the previously projected Y340.00 billion.
For the nine-month period ending on December 31, net profit rose slightly by 0.7% to Y2.23 billion, while revenue decreased by 16% to Y214.50 billion.
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