NEC swings to annual net profit

April 26, 2013

Japan's NEC cast off two straight years of losses Friday, reporting it had returned to the black after a painful restructuring including layoffs and a business overhaul.

The information technology giant said it earned 30.4 billion yen ($308 million), reversing a loss of 110.3 billion yen a year earlier, as the firm chopped about 10,000 jobs and slashed production in its mobile phone division.

Operating profit was also strong at 114.6 billion yen, soaring 55.5 percent from the previous year, on sales of 3.07 trillion yen, up 1.1 percent on year, NEC said.

Once a chip-and-computer powerhouse of Japan's , NEC has tried to reinvent itself dramatically in recent years.

The company has reduced its exposure to volatile businesses such as semiconductors, while scaling back in the competitive personal computer and mobile phone segments where it struggles to compete globally.

It spun off its computer business into a joint venture with China's and its struggling chip affiliate Renesas Electronics is now owned by an investment fund backed by the Japanese government.

NEC is now heavily focused on providing technology services to Japanese firms, selling equipment to , and building up its automotive vehicle .

For the year to March 2014, NEC said it is forecasting a net profit of 20 billion yen on revenue of 3.0 trillion yen.

Explore further: Japan's NEC reports 3.05 bln dollar annual loss

Related Stories

NEC sees losses triple

January 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.

Japan's Fujitsu hit by third-quarter loss

January 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.

Japan's NEC sees $1.36 billion net loss

April 27, 2012

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.

Japan's NEC revises up profit forecast

October 19, 2012

Japanese information technology firm NEC said Friday it has revised its half year forecast from a loss to a healthy net profit, with reports saying demand for iPhones was helping the company.

NEC swings to quarterly net profit

January 31, 2013

Japanese information technology firm NEC said Thursday it had swung to a net profit in the October-December quarter, thanks in part to improved sales in defence systems and mobile networks.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.