NEC Corporation today announced revisions to the consolidated financial forecasts and dividend forecasts announced on October 27, 2011 for the fiscal year ending March 31, 2012 as well as the recording of business restructuring costs.
1. Revised consolidated financial forecasts for the fiscal year ending March 31, 2012
(April 1, 2011 to March 31, 2012)
(In billions of yen)
Sales Operating
income (loss) Ordinary
income (loss) Net income
(loss)
Previous Forecast (A)
(announced October 27, 2011) 3,250.0 90.0 55.0 15.0
Revised Forecast (B) 3,100.0 70.0 35.0 -100.0
Difference (B) – (A) -150.0 -20.0 -20.0 -115.0
Change (%) -4.6% -22.2% -36.4% –
(Reference)
FY ended March 31, 2011 3,115.4 57.8 0.0 -12.5
2. Reasons for Financial Forecast Revisions
As challenging business conditions continue, NEC forecasts sales of 3,100.0 billion yen, 150.0 billion yen less than the previous forecast, mainly due to a decrease in sales in the Carrier Network business as a result of investment restraint in international markets, a decrease in sales from a decline in mobile phone shipments in the Personal Solutions business and the impact of flooding in Thailand on the Platform business.
NEC forecasts operating income of 70.0 billion yen, 20.0 billion yen less than the previous forecast, mainly due to loss from decreased sales in the Personal Solutions business and Platform business. NEC also forecasts ordinary income of 35.0 billion yen, 20.0 billion yen less than the previous forecast, mainly due to worsening operating income (loss).
NEC forecasts net loss of 100.0 billion yen, 115.0 billion yen less than the previous forecast, mainly due to worsening ordinary income (loss), business restructuring costs for the reform of cost structure, and an increase in income taxes due to the review of deferred tax assets that reflect tax reform and financial forecasts for this fiscal year.
3. Extraordinary Loss from Business Restructuring Costs
NEC forecasts extraordinary loss of about 40.0 billion yen for the fiscal year ending March 31, 2012, mainly due to business restructuring costs centered on personnel reductions.
4. Dividend Forecast Revision
Interim Dividend Year-end Dividend Annual Dividend)
Forecast as of October 27, 2011 – Undetermined Undetermined
Revised forecast for FY
ending March 31, 2012 – 0 yen 0 yen
Actual 0 yen – –
(Reference)
FY ended March 31, 2011 0 yen 0 yen 0 yen
5. Reasons for Dividend Forecast Revision
Regrettably, NEC has revised its forecast for year-end dividends for the fiscal year ending March 31, 2012 from undetermined to none, in consideration of the forecast net loss for the fiscal year ending March 31, 2012, and others.
