By Kosaku Narioka
Mitsui High-Tec shares fell sharply Wednesday morning after the company downgraded its fiscal-year earnings forecasts, citing weaker demand for its products used in semiconductors.
The company’s shares were recently 16% lower at 7,720 yen, at the lower end of the day’s trading range.
Mitsui High-Tec said Tuesday after market close that it expects net profit to drop 33% to Y11.70 billion ($79.6 million) for the fiscal year ending January 2024, down from the Y16.60 billion it had previously forecast. The company projects that revenue will climb 10% to Y192.00 billion, down from the Y205.00 billion previously expected.
Mitsui High-Tec said that while demand for electric-vehicle motor parts is strong, demand for leadframes–thin metal layers used in semiconductors–is weaker than previously thought.
The company said its net profit dropped 30% to Y7.71 billion for its first half ended July 31, while revenue grew 9.5% to Y93.61 billion.
Write to Kosaku Narioka at [email protected]
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