By Kōsaku Narioka
Shares of TDK fell sharply Thursday morning after the Japanese electronics maker reported a 53% drop in first-quarter web revenue and lower full-year steerage attributable to weak demand for elements utilized in knowledge facilities and vehicles.
Shares not too long ago fell 9.8% to 4,913 yen, after falling 11% earlier.
TDK mentioned after the market closed on Wednesday that web revenue fell to 14.725 billion yen ($102.7 million) for the quarter ending in June, from 31.41 billion yen in the identical interval a yr earlier.
First-quarter income fell 1.4% to 503.40 billion yen as demand for electronics elements for smartphones, tablets, laptops and knowledge middle laborious drives weakened.
TDK lowered its income and web revenue forecasts for the fiscal yr ending March 2024. The corporate mentioned laborious drive elements gross sales are more likely to be weaker than beforehand thought, as knowledge middle laborious drive manufacturing is predicted to say no sharply, and laborious drive manufacturing for knowledge facilities is more likely to decline. Automotive electronics elements gross sales are decrease as some prospects management their stock.
It expects income to say no 9.7% to 1.970 trillion yen, down from 2.020 trillion yen beforehand forecast, and web revenue to say no 8.0% to 105.00 billion yen, down from 147.00 billion yen beforehand forecast.
Write to Kosaku Narioka at firstname.lastname@example.org