By Kosaku Narioka


TDK shares fell sharply Thursday morning after the Japanese electronics maker posted a 53% drop in its first-quarter net profit and cut its full-year guidance due to weaker demand for parts used for data centers and cars.

Shares were recently 9.8% lower at 4,913 yen after falling as much as 11% earlier.

TDK said after Wednesday's market close that net profit dropped to Y14.725 billion ($102.7 million) for the quarter ended June from Y31.41 billion in the year-earlier period.

First-quarter revenue fell 1.4% to Y503.40 billion as demand for electronics parts weakened for smartphones, tablets and laptops, and hard-disk drives for data centers.

TDK cut its revenue and net profit forecasts for the fiscal year ending March 2024. The company said sales of hard-disk-drive parts are likely weaker than previously thought, as production of hard-disk drives for data centers is expected to drop sharply, and sales of electronics parts for cars are probably lower as some clients control their inventories.

It expects revenue to drop 9.7% to Y1.970 trillion, down from Y2.020 trillion projected previously, and net profit to fall 8.0% to Y105.00 billion, down from Y147.00 billion forecast earlier.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

08-02-23 2230ET