FANUC Corp., Japan’s leading industrial automation company, posted a 2.7% drop in first-half revenue as robot demand weakened in China, even as its factory automation business showed strength in emerging markets.
Sales fell to ¥387.9 billion ($2.7 billion) in the six months through September, while operating profit rose 14% to ¥75.6 billion, the Yamanashi-based company said Friday. The profit gain came mainly from cost controls and a more favorable product mix.
Robot sales plunged 15% as demand cooled in China’s electric vehicle sector. The division, which accounts for over 40% of revenue, saw particular weakness in infrastructure and electronics customers in the Chinese market.
The factory automation unit provided a bright spot, with sales climbing 7.2% on strong demand from India and China, where government incentives helped drive growth. Service revenue increased 8.7% as the company expanded its maintenance offerings.
FANUC maintained a cautious outlook, citing ongoing inventory adjustments in some segments and concerns about China’s economic trajectory. The company faces headwinds from sustained high interest rates in Western markets.
For the full year through March 2025, FANUC projects sales of ¥787.8 billion and operating profit of ¥150.8 billion, representing modest increases from its previous forecast.
The latest results underscore FANUC’s efforts to reduce its reliance on the volatile Chinese market by expanding in India and other emerging economies.
