Japan's NEC sees $1.36 billion net loss

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 financial assets it was holding.

The results come as many of Japan's technology companies have struggled under pressure from the stubbornly strong yen, global competition, 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 smart phones 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, operating profit of 100 billion yen and revenue of 3.15 trillion yen.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • What can void a new car warranty? James Deakin - Wheel Power
    What can void a new car warranty?

    "I was denied warranty once for changing my horn!" One very annoyed reader wrote. "I was told that placing a backup camera will void my warranty" said another. The others are best left in my private inbox as Yahoo! have a swear jar in the office that I do not feel like donating this week's pay to. Continue reading → …

  • Docu exposes destruction of PH marine resources VERA Files - The Inbox
    Docu exposes destruction of PH marine resources

    By Kiersnerr Gerwin B. Tacadena, VERA Files “Gutom (hunger),” Sen. Loren Legarda said is what’s in store for the Filipino people if destruction of the country's marine resources is not stopped. Legarda, chair of the Senate committee on Environment and Natural … Continue reading → …

  • ‘Yolanda’ fiberglass boats modern-day Noah’s ark VERA Files - The Inbox
    ‘Yolanda’ fiberglass boats modern-day Noah’s ark

    By Jane Dasal, VERA Files If you want to save the earth, build a boat. That's what a group of environmentalists is saying, especially if you want to save both the forests and fishermen affected by supertyphoon “Yolanda” (Haiyan). “Haiyan … Continue reading → …

POLL
Loading...
Poll Choice Options