April 15 (Bloomberg) -- Japanese stocks fell, with the main indexes completing their worst week in almost a year. Computer- related companies such as Fujitsu Ltd. led the drop after Samsung Electronics Co. and International Business Machines Corp. reported first-quarter profits that missed expectations.

Exporters including Canon Inc. and Kyocera Corp. declined after U.S. stock indexes slid to their lowest this year on concern that growth in the world's largest economy is slowing.

``Earnings from major technology companies such as Samsung Electronics confirm that the industry is struggling globally,'' said Hideaki Kurimoto, who helps oversee the equivalent of $2.8 billion at Meiji Dresdner Asset Management Co. in Tokyo. ``The biggest driver of the selling is concern that earnings growth as well as the global economy will slow.''

The Nikkei 225 Stock Average slumped 192.48, or 1.7 percent, to 11,370.69, erasing this year's gain, at the 3 p.m. close in Tokyo. The Topix index slid 17.75, or 1.5 percent, to 1150.67, with technology companies accounting for 19 percent of the loss.

Both the Nikkei and the Topix dropped 4.2 percent this week, their biggest weekly declines since the period ended May 14.

Nikkei 225 futures for June delivery plunged 2.1 percent to 11,320 in Osaka and dropped 2 percent to 11,335 in Singapore.

Meiji Dresdner's Kurimoto said he's avoiding semiconductor- related shares, without naming them.

Shares valued at 1.36 trillion yen ($12.6 billion) in the Topix traded, 6.6 percent more than the daily average for the past three months. Fifteen shares fell for every one that gained on the Tokyo Stock Exchange's first section.

IBM Earnings

Fujitsu, Japan's biggest maker of business computers, fell 21 yen, or 3.2 percent, to 634, its biggest slump since July 29.

Samsung Electronics, Asia's largest electronics maker by market value, posted a first-quarter profit drop of 52 percent on falling prices of chips and liquid crystal displays.

IBM, releasing results four days early, said profit from continuing operations was 85 cents a share, missing the 90-cent average of 17 estimates in a Thomson Financial survey. Sales trailed projections in each of the three biggest businesses: software, services and hardware, IBM said in a statement.

Shares of IBM, which released its earnings forecast after the close of regular trading in the U.S., slumped 3.8 percent in extended trading.

`Confirming Suspicions'

Sun Microsystems Inc., the world's No. 3 maker of servers that run corporate networks, also reported a decline in third- quarter sales. IBM and Sun's results come a day after Apple Computer Inc. said second-quarter results and third-quarter estimates may trail analysts' highest expectations.

``Earnings from U.S. technology companies are confirming our suspicions about a slowdown in the industry,'' said Koichi Seki, an equity manager at Chuo Securities Co. in Tokyo. ``You can see how bad the market sentiment is in the U.S. and that's weighing on the exporters and technology stocks at home.''

Sony Corp., which makes Vaio computers, lost 110 yen, or 2.7 percent, to 4,040. Toshiba Corp., Japan's second-biggest chipmaker, sank 13 yen, or 2.9 percent, to 436. Sony and Toshiba are developing technology for advanced chips with IBM.

Tokyo Electron Ltd., the world's second-largest maker of semiconductor production equipment, slid 180 yen, or 3 percent, to 5,880. Elpida Memory Inc., Japan's largest memory-chip maker, declined 120 yen, or 3 percent, to 3,900.

U.S. Demand

Canon, the world's largest maker of copiers, lost 110 yen, or 1.9 percent, to 5,620. The company generated 70 percent of its sales from overseas last year.

Kyocera, the world's largest maker of ceramic packaging used to protect finished microchips, dropped 260 yen, or 3.4 percent, to 7,460. The company generates about two-thirds of its revenue overseas.

U.S. stocks slumped as falling commodity prices and a government report on business inventories fueled concern economic growth is slowing. Both the Dow Jones Industrial Average and the Standard & Poor's 500 Index slumped to levels not seen since November, while Nasdaq Composite Index dropped to its lowest since Oct. 26.

Victor Co. of Japan, a unit of Matsushita Electric Industrial Co., slipped 32 yen, or 3.7 percent, to 845. The company after the market closed yesterday said it had a net loss of about 2.33 billion yen for the three months ended March 31 on lower prices for DVD recorders and flat-panel televisions.

Goldman, Sachs & Co. cut its rating on the stock to ``underperform'' from ``in-line,'' citing the earnings.

Olympus, Fast Retailing

Olympus Corp., which makes digital cameras, plunged 100 yen, or 4.2 percent, to 2,285. Eastman Kodak Co., the world's largest photography company, rose to third place in global digital camera sales last year, surpassing Olympus, according to a report by IDC, a market data company.

Elsewhere, Fast Retailing Co., the operator of Japan's Uniqlo-brand clothing chain, rose 150 yen, or 2.5 percent, to 6,120. The company said late yesterday that second-quarter profit jumped two thirds, helped by new store openings and an advertising campaign that attracted more customers.

Kanebo Ltd., a drug and food company being rescued by Japan's government, slid by the daily limit for a third day after the company said it inflated earnings by about 210 billion yen over five years to March 2004.

The stock plunged 200 yen, or 18 percent, to 891 yen, making it the worst performer on the first section.

Canon Inc. (7751 JT)
Elpida Memory Inc. (6665 JT)
Fast Retailing Co. (9983 JT)
Fujitsu Ltd. (6702 JT)
Kanebo Ltd. (3102 JT)
Kyocera Corp. (6971 JT)
Olympus Corp. (7733 JT)
Sony Corp. (6758 JT)
Tokyo Electron Ltd. (8035 JT)
Toshiba Corp. (6502 JT)
Victor Co. of Japan (6792 JT)

To contact the reporter on this story: Tomoko Yamazaki in Tokyo at tyamazaki@bloomberg.net.

Last Updated: April 15, 2005 02:31 EDT