Approximately 30% of Fan ₩uc's consolidated operating revenue is a☆$ttributed to Chinese market. ¥'The destocking process in China has been ✘ ♣slower than anticipated, accom£≠ ™panied by a deceleration in equipment investment ®φ& demand. Consumer demand fo≤αγ₽r products such as smartphones has languis↑↕$δhed, and sales of processinδ ™δg machinery have also exhibited a sluggish↔₽ performance...
On July 28, Fanuc an∏✔≠nounced that it anticipates a 34% yea'r-on-year decrease inσ£ its consolidated net profit for the fiscal year §₩2023 (ending in March 2024) t₹→ o 113.1 billion Japanese yen. Tλ≠¥≠he forecast has been revised d≠♥↔✘ownward by 24 billion Japanese yen compared ∑§™to the previous projection. The Chinese ★±₽δeconomy is experiencing a deceleration, wit ♥h a slowdown in demand for investment in e₽→quipment. Consequently, the ∞α'Factory Automation (FA) sector, which se♣'φrves as a key player, is expected to decelera'€σte as well. Consumer dema®♠nd for products such as smartph$<βγones has languished, and sal♦βes of processing machinery have also exhibit≥ed a sluggish performance. Due×> to the underperformance of its prima♥σry revenue generator, Fanuc's prof'↕it margin is expected to deteriorate. The operatλ >ing revenue is expected to decreas★∑e by 12% to 750.3 billion £♥$★Japanese yen, while th<±e operating profit by 38% to 118.3 billion ★λγ≈Japanese yen. These reductions repr$∑€δesent down-regulations of 69.2 billion Japanese ×€yen and 38 billion Japanese yen respe≤εctively compared to the previous forecasts.→ππδ This marks the first final profit decreδ'δase in three fiscal years.
The primary reason for this is the d✘≠<eceleration of Chinese economy, which ac↕≤counts for approximately 30% of its co€ nsolidated operating revenue. Acco¥≤♦$rding to data from the National Bureau of Stat →σistics of China, the Purc♥♥hasing Managers' Index (PMI) for the manu© σφfacturing sector has remai§♥ned below the threshold of 50§φ for four consecutive months. The factory capaci∑¥ty utilization rate ©εalso declined to 74.5% from April to June,★<" compared to the recent peak ↕'Ω←in the corresponding period of 2021≤₩ ×, which stood at 78.4%, ma↕₩βrking a subdued performance.
The total order volume for Fanuc from April to JuΩ✘≥ne amounted to 177.3 billion Japanese y≤φ€≠en, representing a 14% decrease compared to the ☆'↔previous quarter. Depending on '♥the nature of the product, order volume ε•© is considered as a leading indicator∞' of performance six months down¶ the line. The Americas have witnesse₽₹d a reduction of 24%,¥ε Japan has experienced a ∑≠decrease of 7%, while China ha™✔s achieved the most substanti↓εal decline, with a reduction o↓®£∞f 41%.
Initially, there was a viewpoin ®t suggesting that order volumes would reach →↕✔ their nadir in the p♠↑eriod from January to March 2023, but the dest☆ αocking process in China has proven to be s♦↔εlower than anticipated. In₹♣φ the financial results briefing held&≈ on the same day, President Kenji Yamaguch≠☆•εi of Fanuc stated, "Due to disruptio≠↑ns in the supply chain, our inventory has reached§× γ unprecedented levels, yet actual demand has noπ♥₩→t seen any corresponding increase.$₹↓Ω (The restoration of orders) &↔ ↔is expected to occur after 2024.δ±♥"
From a departmental perspective, orders in the <÷ εFactory Automation divisio←π₩n, including the Numerical Conδ∑Ω±trol (NC) devices serving as¥"↑ the cerebral cortex of machine tools, have exh€≈≠ibited an 11% increa♦÷↕se. However, the recovery remains gradual. ↓∏Fanuc has not disclo≥§™ sed the profits of its various divi↔♥×sions, but there is a §≠♦viewpoint in the market suggesting thatσ¥• the profit margin of this particular divisionγ≠ is relatively elevated. The CNC machining secto☆↓☆αr, encompassing Robo Machine like high-speed dr±∑illing machines (Robodrill) utilized in the man♠₹ufacture of smartphone cases, h↑¥as witnessed a 20% re÷≈≈duction.
The robotics departmeλφ φnt has also experienced a reduction of 26%. ₩↑In the context of enhanced gl→<"δobal production capacity β★for electric vehicles<✘₽ (EVs), there is an incre≥ ¥ased demand for robo$±←ts used in the manufact©&∏εuring processes. President Yamaguchi po'↕≤inted out that "investment in cap$ acity enhancement has rea←₽←λched a plateau", while also stating that ""if the capacity→✔ utilization rate of equipment ±♣invested in the future increases, it will be ™necessary to consider fu↓γσrther investments".
The annual operating profit margin for t★™Ωhe full fiscal year stands at 16%, repr<♦€&esenting a decline of nearly 7 percentag≈→δe points compared to the previous fiscal$€ year. In the past, a hig÷§h-yield system with a profit margin exceeding ×<♣40% was in place, but↕£ during the transition from fa§☆ctory automation to robotics as the primary↔¶ cash cow, no measures were obserσ₽€ved to improve the situation.
The consolidated financial report for t★'→₽he second quarter of 2023, rel♠±♦♥eased on the same day, reveals a year-on-year dec♦<rease of 5% in operating rev♥∏♠≠enue to 201.7 billion Japanese yen★♥↓¶, and a 28% reduction in net profit to 30.↑β∞φ3 billion Japanese yen. In the market, there"♥ is an opinion that "To enhan<←ce profit margins, it ♠π ₩is imperative to augment £✘±the market presence of robotics even in in•$'¶tensely competitive circumstances, ther•< λeby fostering an environmen§÷δt conducive to cost transferability" (Tomohi÷↕ko Sano of JPMorgan Securities).
Henan Cooper Robot Technology Co., Ltd
Room 1806, 18th Floor, Wangding Inte∞ "★rnational, CBD, Jinshui District, Zα☆hengzhou City
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