Fanuc Shares Slump After Guidance Cut on Weakness in China Business

By Kosaku Narioka

Fanuc Corp. shares fell sharply Monday morning after the Japanese industrial robot maker posted lower quarterly profit and cut its full-year guidance due partly to weakness in its China business.

Shares were recently 6.9% lower at 4,365 yen after falling as much as 9.2% earlier.

Fanuc said after Friday's market close that net profit fell 28% from a year earlier to Y30.32 billion ($214.8 million) for the quarter ended June. First-quarter revenue dropped 4.6% to Y201.77 billion, dragged by declines in China, Japan and the rest of Asia.

The company said that while the shortage of chips has eased, it expects clients to continue to control their inventories for a longer time as concerns about a global economic slowdown remain.

Fanuc said orders received for China in its first quarter dropped 41% to Y36.5 billion from the previous quarter.

The company lowered its revenue and net profit projections for the year ending March 2024. It now expects revenue to drop 12% to Y750.30 billion, down from Y819.50 billion forecast previously, and net profit to fall 34% to Y113.10 billion, down from Y137.10 billion projected earlier.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

July 30, 2023 22:26 ET (02:26 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.