Seiko Epson Drops by Record After Cutting Forecast
Seiko Epson Corp. (6724), a Japanese printer maker, plunged by its daily limit to a record low in Tokyo trading after cutting its profit forecast 64 percent because of costs to settle a lawsuit by Motorola Mobility LLC.
The stock dropped by its trading limit of 100 yen, or 16 percent, to 529 yen, as of 2:41 p.m. on Tokyo’s stock exchange, heading for its biggest decline and lowest closing level since its June 2003 initial public offering. The benchmark Nikkei 225 Stock Average slipped 0.6 percent.
Seiko Epson’s image-device unit will pay $150 million to Motorola Mobility to settle a lawsuit filed in 2009 seeking damages from price fixing of liquid-crystal displays, the Nagano, Japan-based maker of watches and printers said in a statement yesterday. The company decided to settle after considering factors such as the cost of continued litigation, it said.
Net income may total 5 billion yen ($64 million) for the year ending March 31, compared with its previous estimate of 14 billion yen, Seiko Epson said in the statement. The company also cut its operating profit forecast 20 percent to 28 billion yen because of a slowing recovery in overseas markets including the U.S. and Europe.
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