Japan's NEC sees $1.36 billion net loss

Apr 27, 2012
A customer inspects laptops from Japanese electronics maker NEC at an electrics shop in Tokyo in January. Japanese IT firm NEC said Friday it lost $1.36 billion in the year to March as asset write-downs and tax payments hit its bottom line, even as operating profit rose.

Japanese IT firm NEC said Friday it lost $1.36 billion in the year to March as asset write-downs and tax payments hit its bottom line, even as operating profit rose.

NEC's net loss stood at 110.3 billion yen, multiples of the 12.5 billion yen lost in the previous year.

But operating profit rose 27.5 percent to 73.7 billion yen after the firm offloaded a loss-making entity, on sales of 3.0 trillion yen, down 2.5 percent from the previous year.

The net loss expanded as the company booked 117 billion yen in additional tax payments, saw a 40.5-billion-yen special loss for restructuring, and took a 11.7 billion yen hit from the loss in value of it was holding.

The results come as many of Japan's technology companies have struggled under pressure from the stubbornly strong yen, , increasing material costs and falling prices.

In January, NEC said it plans to axe 10,000 jobs globally.

The flooding in Thailand in autumn depressed sales of its electronics parts, with the natural disaster damaging its factories, while NEC's have failed to attract customers, the company said.

But operating profits rebounded, after the company in the previous fiscal year suffered a special loss from spinning off its loss-making semiconductor unit.

For the current fiscal year through March 2013, NEC forecasts a net profit of 20 billion yen, of 100 billion yen and revenue of 3.15 trillion yen.

Explore further: Netflix branches into films with 'Crouching Tiger' sequel

add to favorites email to friend print save as pdf

Related Stories

Japan's Fujitsu hit by third-quarter loss

Jan 31, 2012

Japanese high-tech giant Fujitsu plunged into a net loss for the three months to December, it said Tuesday, as it slashed its full-year sales and profit forecast.

NEC sees losses triple

Jan 27, 2011

Japan's NEC said Thursday its net loss in the October-December quarter almost tripled from a year earlier, blaming a delay in the recovery of IT-related capital investment in the country.

Toshiba returns to black on smartphone chip demand

Jan 31, 2011

(AP) -- Toshiba Corp. said Monday it returned to the black in the October-December quarter thanks to robust global demand for the flash memory chips used in digital cameras and smartphones.

Japan's Panasonic set for $10.2 billion loss

Feb 03, 2012

Japan's Panasonic on Friday warned it would see its worst-ever net loss of 780 billion yen ($10.2 billion) for the year to March, blaming the strong yen, flooding in Thailand, and acquisition costs.

Canon profit drops, cuts forecasts due to tsunami

Apr 26, 2011

(AP) -- Canon said its first quarter profit dropped slightly on costs from an acquisition and Tuesday warned that full year earnings would take a hit from disrupted production due to Japan's earthquake and tsunami.

Recommended for you

What's PayPal's first solo move?

16 hours ago

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

21 hours ago

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

User comments : 0