China's Economic Slump Hits Earnings at Japan Manufacturers

Economy

Tokyo, July 28 (Jiji Press)--Japanese manufacturers, semiconductor-manufacturing equipment makers and electronic parts producers in particular, have suffered drops in earnings due to a slowdown in the Chinese economy.

In China, consumer spending have weakened while corporate capital expenditures remain in the doldrums in the face of the protracted trade friction with the United States.

On Wednesday, Canon Inc. <7751> lowered its consolidated operating profit estimate for the year to December by 59 billion yen to 215 billion yen, citing weaker-than-expected sales in the Chinese market. In addition to its mainstay digital cameras, chipmaking equipment sales to corporate customers were sluggish.

Among chipmaking equipment makers, Advantest Corp. <6857> and Tokyo Electron Ltd. <8035> reported falls in both group sales and profit in April-June, as customers, mainly Chinese companies, curbed capital spending following a drop in the market prices of semiconductor memory chips.

At motor producer Nidec Corp. <6594>, group operating profit in April-June plunged about 40 pct year on year, hit by weakening profits from parts used for home electronics and industrial equipment in China.

[Copyright The Jiji Press, Ltd.]

Jiji Press