FANUC (TSE:6954), based in Japan, is a leading global producer of robots and the servo -motors used in robots. Its stock lost ground after it announced conservative earnings guidance. The company has a history of conservative guidance, and we don’t see any struc-tural negatives in its business. We do, however, keep our eye on possible changes in the company’s competitive environment. A Chinese competitor intends to expand robot production, and another competitor may be further ahead in the development of robots that can collaborate with humans. Nonetheless, we still believe FANUC’s market position is very strong.
From First Eagle Global Value Fund's second quarter 2018 shareholder letter.
