By Kosaku Narioka
Yamaha Corp. shares dropped sharply after the Japanese maker of musical instruments posted a drop in first-half net profit and lowered full-year guidance, partly due to a slow recovery in the Chinese market.
The shares were recently 7.8% lower at 3,763 yen on Thursday morning.
Yamaha said Wednesday after market close that net profit dropped 28% from a year earlier to Y14.945 billion ($99.0 million) for the six months ended Sept. 30.
The company said weaker sales of musical instruments and lower production weighed on earnings.
First-half revenue rose 0.7% to Y219.63 billion as stronger sales of audio equipment for commercial use and the impact of a weaker yen helped offset weak demand for digital pianos and a delay in the recovery of the Chinese market.
Yamaha lowered its earnings forecast for the fiscal year ending March 2024, citing a slow Chinese market recovery and production cutbacks. It now projects fiscal-year net profit to drop 9.6% to Y34.5 billion, down from its previous forecast of Y38.5 billion.
Write to Kosaku Narioka at [email protected]
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