Japan's Murata, Keyence face falling profits on China slowdown

9-month earnings take hit at companies with most exposure to country's economy

Both Murata Manufacturing and Keyence reported smaller profits for the nine months ended December. (Nikkei montage/Source photos by Atsushi Ooka, Toshiki Sasazu)

KENTARO TSUTSUMI, Nikkei staff writer

February 3, 2024 02:34 JST

TOKYO -- The slowing Chinese economy is undercutting earnings at Japanese companies like electronic component makers Murata Manufacturing and Keyence, with most firms heavily exposed to China reporting a decline in profit.

Out of 21 Japanese companies with strong links to China, net profit declined at 18 companies during the nine months ended December compared with a year earlier, according to earnings reports released through Friday.