Shares of Casio Computer Co. fell the most in 32 years after the company missed its profit target and unveiled plans to expand in the crowded mobile-phone market. The stock tumbled by the 400-yen daily limit, or 16 percent, to 2,025 yen in Tokyo, erasing $931 million from its market value. Brokerages including HSBC Holdings Plc downgraded the stock after the company reported annual profit of 25.1 billion yen ($209 million), missing its own estimate by 9 percent.
The mobile-phone business was Casio’s second-biggest sales contributor last year, behind electronics such as digital cameras. Revenue from handsets gained 23 percent to 171.3 billion yen in the 12 months ended March 31, compared with a 7.3 percent increase for consumer electronics to 229.4 billion yen.
Casio already makes mobile phones using the CDMA2000 standard for the Japanese, Korean and U.S. markets, and is considering a “broad range of possibilities” to expand the overseas handset business, spokeswoman Mai Kimura said. She declined to provide more details. Full article Here.