Aug. 2 (Bloomberg) -- Tokyo Electron Ltd., the world’s second-largest maker of semiconductor equipment, fell the most in more than four months after the company cut its profit forecast.
The company dropped as much as 6.6 percent to 3,925 yen as of 9:27 a.m. on the Tokyo Stock Exchange, the biggest intraday decline since March 17. The benchmark Nikkei 225 Stock Average slipped 1.2 percent.
Asia’s biggest chip-equipment maker forecast net income in the year ending in March will be 34 billion yen ($440 million), 49 percent lower than its previous forecast, because sales will be lower than expected. A recovery in demand may be muted, Tetsuya Wadaki, a Tokyo-based analyst at Nomura Holdings Inc.
Wadaki cut his rating on the stock to “neutral” from “buy” and the target price to 4,017 yen from 5,271 yen.
The reduced forecasts follow weaker-than-estimated earnings at chipmakers such as Taiwan Semiconductor Manufacturing Co., the world’s largest contract manufacturer of chips. Slowing demand for computers and concerns about Europe’s debt crisis are forcing clients such as Qualcomm Inc. to reduce their sales expectations.
--Editors: Anand Krishnamoorthy, Young-Sam Cho.
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