June 14 (Bloomberg) -- Tsugami Corp. fell the most in almost five years in Tokyo trading on concern orders for the company’s machine tools are slowing since peaking in March.
Tsugami shares dropped as much as 12 percent, the most since Aug. 17, 2007, to 479 yen on the Tokyo Stock Exchange. The stock fell 11 percent to 485 yen at the trading break in Tokyo, the most in the Topix among 1,674 companies. The Topix Machinery Index declined 0.9 percent.
“The company expects orders will likely fall in the second half of this year,” Miwako Miki, a Tsugami spokeswoman, said on the phone. “Demand will likely drop from a decline in customers’ willingness for capital investment.”
Demand has slowed from most customers, including suppliers to Apple Inc., Graeme McDonald, a Tokyo-based analyst at Citigroup Global Markets Japan Inc., wrote in a report dated yesterday. Orders for machinery tools used in the car industry have slowed, while demand for machines used to make hard-disk drive components have yet to materialize, McDonald wrote, citing Tsugami’s chief executive officer.
Orders have been declining after it peaked in March at 6.5 billion yen ($82 million), Miki said. Tsugami, which gets almost a quarter of its sales from China, has plunged 40 percent for the past three months, while Topix’s Machinery Index fell 17 percent for the period. The Topix has fallen 17 percent from this year’s high on March 27 as China’s economic growth slowed and on growing concern Europe’s debt crisis is spreading.
To contact the editor responsible for this story: Teo Chian Wei at firstname.lastname@example.org