TDK lowers earnings forecast downwards Sales decline in China due to new corona March 25 18:30
TDK, a major electronic component, has revised down its earnings forecast for the fiscal year ending March 31, 2015, mainly due to a decrease in sales in China due to the spread of the new coronavirus.
TDK has reduced its annual sales for the fiscal year ended March 31 by ¥ 30 billion to ¥ 1,360 billion from the previously expected ¥ 1,390 billion.
Net income was reduced by ¥ 26 billion from ¥ 84 billion to ¥ 58 billion.
The Company had previously forecasted sales and profits to increase for the fiscal year ending March 31, but with downward revisions on the 25th, sales and profits are expected to decrease.
Sales of coils and batteries used in smartphones and other products in the mainstay Chinese market declined due to the spread of the new coronavirus.
The decline in the asset value of production equipment, such as automobile parts, for which the sluggish sales have been prolonged, has a negative impact of 17.5 billion yen.
The TDK states, "We have reflected the impact we can see at this time. We will continue to examine the impact of the spread of the new coronavirus on our business in the United States and Europe."