TOKYO — FANUC upgraded its earnings projection for the year ending in March on Wednesday, reflecting an unexpected influx of large Chinese orders for numerical control systems for machine tools as well as brisk robot sales to the auto industry.
The Japanese manufacturer now expects group net profit to fall 35% to 103.3 billion yen ($977 million), up from the previous forecast of 93.7 billion yen. The sales estimate was raised by 3.1 billion yen but is still seen dropping 18% to 508.8 billion yen. Operating profit is projected to sink 38% to 134.1 billion yen, but that figure is 16.8 billion yen higher than initial estimates. Though FANUC’s earnings have suffered from the absence of the year-earlier spike in demand for compact machining tools used to make metal smartphone cases, the year-on-year gap will narrow later.
The upgrade reflects only an overshoot in the April-June quarter, since the large orders from China are a one-off factor and overall Chinese demand is expected to remain soft. Profit should receive a boost from higher-than-expected demand for robots, which has improved factory utilization. Fanuc revised its assumed exchange rates for July through March from 105 yen to the dollar to 100 yen, and 115 yen to the euro to 110 yen.
April-June earnings released alongside the forecasts showed sales falling 35% year on year to 127.5 billion yen and net profit dropping 40% to 30.2 billion yen.
This information was obtained from the Bing News automatically for the informational purposes. All copyrights belongs to their respective owners.