TOKYO: Nikon Corp had its biggest intraday drop on record after the camera and chip equipment maker reported a steep fall in profit and cut its outlook on precision equipment.
The Japanese company’s stock price tumbled as much as 21% in Tokyo yesterday, a day after it said net income fell 78% in the quarter ending in June, hurt by lower utilisation rates by customers of its lithography systems, used to make legacy chips.
It also slashed by 20% its full-year profit outlook on its precision equipment segment.
Nikon shipped a total of four lithography machines in the June quarter, compared with a total eight last year.
The company lifted its full-year sales forecast above consensus and stuck to its profit forecast, however, on solid demand for its mirrorless cameras, coupled with easing of supply chain issues and a weak yen.
“The precision equipment and components segments were much weaker than expected due to North American clients delaying investments and other factors,” Mitsubishi UFJ Morgan Stanley analyst Tetsuya Wadaki said in a note to investors.
Nikon supplies major chipmakers including Intel Corp and Taiwan Semiconductor Manufacturing Co, although it’s overshadowed by ASML Holding NV in lithography machines, particularly in the cutting-edge segment.
The global chip industry is grappling with sluggish consumer spending on personal electronics including smartphones and PCs.
TSMC, the world’s largest contract chipmaker, cut its full-year sales outlook in July, while its smaller US-based rival GlobalFoundries Inc also provided tepid sales guidance for the current quarter. — Bloomberg
