Tokyo Electron profits plummet as equipment sales dive
Lack of large-scale investment from semiconductor manufacturers yields disappointing results, reports Japanese equipment manufacturer
Japan-based semiconductor equipment manufacturer, Tokyo Electron, has posted a sharp profit drop and downgraded its financial forecasts.
Net sales in the first quarter of this fiscal year are down 12.4% to 134,179 million yen, from the same period last year. Meanwhile, net income for this first quarter, is down 5,720 million yen, a 65.6% drop from the same period, last year.
Net sales in semiconductor equipment "“ the company's largest segment - are down 10% to 108,703 million yen, compared to last year.
As the business highlighted in its financial statement: "Smartphones failed to drive the semiconductor market as a whole, and semiconductor prices were soft. In response, semiconductor manufacturers invested in equipment in some cutting-edge development fields, but investment in equipment for memory was limited and overall there was no large-scale investment."
The business also blamed its disappointing results on global stagnation leaving Japan with only a moderate economy.
"Financial instability in Europe has remained unresolved, feelings of uncertainty concerning China's economic growth rate appeared, and other signs of an overall slowing trend in the world economy were experienced," it stated.
Tokyo Electron now forecasts profits to fall by 61.95% to 14 billion yen, in next fiscal year.
