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Yaskawa Electric cuts sales outlook on China slowdown
October 20, 2015 / 8:28 AM / 2 years ago

Yaskawa Electric cuts sales outlook on China slowdown

TOKYO, Oct 20 (Reuters) - Japanese factory automation company Yaskawa Electric Corp trimmed its annual revenue outlook, citing uncertainty over the extent of China’s economic slowdown and weaker growth in sales of servo motors.

Yaskawa, which specialises in robotics and motion control technologies, now expects 420 billion yen ($3.5 billion) in sales for the year ending March 20, below an earlier forecast of 435 billion yen. That is also less than an average Thomson Reuters I/B/E/S estimate of 430 billion yen drawn from 19 analysts.

Yaskawa and Nidec Corp, which reports on Wednesday, are among the first Japanese technology companies to disclose their numbers for the past quarter. Investors have said weak results by the two could herald poor earnings performances across the country’s tech sector.

Its first-half net profit was in line with market expectations at 12 billion yen, while its full-year profit outlook was unchanged at 24 billion yen.

Yasuo Sakuma, portfolio manager at Bayview Asset Management, said the numbers were not as bad as feared but showed caution was still in order.

“We already knew the environment hasn’t been good for manufacturing equipment orders, and not just at Yaskawa Electric,” he said. “But we still need to be cautious, considering we’re not seeing a bottoming out in orders.” ($1 = 119.6100 yen) (Reporting by Ritsuko Ando and Hirotoshi Sugiyama; Editing by Edwina Gibbs)

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