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Home > News Room > NEC Announces Revision of Financial Forecasts

NEC Announces Revision of Financial Forecasts

***For immediate use October 22, 2008


Tokyo, October 22, 2008 - NEC Corporation today announced revision to its financial forecasts for the first half and full fiscal year ending March 31, 2009.

1. Revision of consolidated financial forecasts for the fiscal year ending March 31, 2009


(1)Six months ended September 30, 2008 (April 2008 – September 2008)

(In billions of yen)

  Sales Operating
income
Ordinary
income
Net income
(loss)
Forecast as of July 31, 2008 (A) 2,150.0 30.0 12.0 (4.0)
Forecast as of October 22, 2008 (B) 2,128.0 13.5 7.0 2.0
Difference (B – A) -22.0 -16.5 -5.0 6.0
Change (%) -1.0 -55.0 -41.7 -

Results for the first half of the previous
fiscal year
(April 2007 – September 2007)
2,140.6 27.4 9.8 (4.7)


(2)Fiscal year ending March 31, 2009 (April 2008 – March 2009)

(In billions of yen)

  Sales Operating
income
Ordinary
income
Net income
Forecast as of July 31, 2008 (A) 4,800.0 170.0 135.0 35.0
Forecast as of October 22, 2008 (B) 4,600.0 120.0 95.0 15.0
Difference (B – A) -200.0 -50.0 -40.0 -20.0
Change (%) -4.2 -29.4 -29.6 -57.1

Results for the previous fiscal year
(April 2007 – March 2008)
4,617.2 156.8 112.2 22.7

2. About the financial forecasts’ revision

Although the business results in the area of IT related business in the IT/Network Solutions business have continued steady growth, sales and operating income for the first half and full fiscal year ending March 31, 2009 are expected to fall as compared with previous forecasts mainly due to continuing severe market conditions such as reduced capital expenditure by domestic telecommunication carriers in the area of Network Systems and worsening market conditions in the Mobile/Personal Solutions business and Electron Devices business.

Ordinary income for the first half and full fiscal year ending March 31, 2009 is expected to fall as compared with previous forecasts owing to the decrease in operating income, despite a decrease in non-operating expenses.

Although net income for the first half of the fiscal year ending March 31, 2009 is expected to improve as compared with previous forecasts mainly owing to gains from the sale of securities, net income for the full fiscal year ending March 31, 2009 is expected to fall as compared with previous forecasts owing to the decrease in operating income.

3. About dividends

As previously disclosed, NEC expects to pay an interim dividend of 4 yen per share of common stock for the fiscal year ending March 31, 2009 (which would result in an annual dividend of 8 yen per share, including the interim dividend).


***

CAUTIONARY STATEMENTS:

This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking statements, which reflect NEC’s analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NEC’s markets, (ii) fluctuating demand for, and competitive pricing pressure on, NEC’s products and services, (iii) NEC’s ability to continue to win acceptance of NEC’s products and services in highly competitive markets, (iv) NEC’s ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC’s business and operations, (vi) NEC’s ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, and (viii) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise.
The management targets included in this material are not projections, and do not represent management’s current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NEC’s business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the applicable securities laws is granted.

NEC Press Contacts:

Makoto Miyakawa
NEC Corporation
+81-3-3798-6511
E-Mail:m-miyakawa@bk.jp.nec.com

Joseph Jasper
NEC Corporation
+81-3-3798-6511
E-Mail:j-jasper@ax.jp.nec.com

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