Fanuc Shares Slump After Robot Maker Posts Disappointing Results

By Kosaku Narioka

Fanuc Corp. shares fell sharply Friday morning after the industrial-robot maker posted disappointing second-quarter results and downgraded its full-year earnings guidance, citing slower demand in China.

The shares were recently 6.6% lower at 19,190 yen after falling as much as 8.3% earlier. The Topix subindex for electronics makers was recently 0.4% lower and the Nikkei Stock Average was down 0.5%.

Fanuc said Thursday after market close that net profit rose 9.7% from a year earlier to Y42.1 billion ($287.7 million) for the quarter ended Sept. 30. That missed the estimate of Y45.20 billion in a poll of analysts by FactSet. Revenue climbed 23% to Y204.6 billion.

Fanuc lowered its earnings forecasts for the fiscal year ending March, citing the prospects of demand slowing in China amid uncertainty over the economic outlook. The company projected fiscal-year net profit to increase 2.7% to Y159.50 billion, down from its previous forecast of Y166.90 billion, and for revenue to rise 9.9% to Y805.70 billion.

Orders for China were Y53.3 billion in its second quarter, down 6.8% from a year earlier and down 15% from the previous quarter.

Write to Kosaku Narioka at [e-mail]

(END) Dow Jones Newswires

10-27-22 2202ET