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Home > News Room > NEC Announces Revision of Financial Forecasts for the Fiscal Year Ending March 31, 2010

NEC Announces Revision of Financial Forecasts for the Fiscal Year Ending March 31, 2010


*** For immediate use Oct. 29, 2009

Tokyo, October 29, 2009 - NEC Corporation today announced the revisions of its full-year financial forecasts for the fiscal year ending March 31, 2010.

1. Forecast Revision for the Fiscal Year Ending March 31, 2010

1) Revision of consolidated financial forecasts for the fiscal year ending March 31, 2010
(April 1, 2009 to March 31, 2010)

(In billions of yen)

  Sales Operating income
(loss)
Ordinary income
(loss)
Net income
(loss)
Previous Forecast (A)
(announced as of July 30, 2009)
3,730.0 100.0 60.0 10.0
Revised Forecast (B) 3,660.0 60.0 40.0 10.0
Difference (B) - (A) -70.0 -40.0 -20.0 -
Change (%) -1.9% -40.0% -33.3% -
Results for the fiscal year ended March 31, 2009 4,215.6 -6.2 -93.2 -296.6

2) Revision of non-consolidated financial forecasts for the fiscal year ending March 31, 2010
(April 1, 2009 to March 31, 2010)

(In billions of yen)

  Sales Operating income
(loss)
Ordinary income
(loss)
Net income
(loss)
Previous Forecast (A)
(announced as of July 30, 2009)
2,020.0 33.0 35.0 20.0
Revised Forecast (B) 2,020.0 33.0 49.0 30.0
Difference (B) - (A) - - 14.0 10.0
Change (%) - - 40.0% 50.0%
Results for the fiscal year ended March 31, 2009 2,241.4 -1.2 -21.6 -474.8

2. Reasons for Revision of Financial Forecast

1) Consolidated financial forecast

NEC forecasts sales of 3,660.0 billion yen, 70.0 billion yen less than the previous forecast due to a sales decline in nearly all business segments, mainly in the Personal Solutions business, the Network Systems business and the Electron Devices business as the severe business environment continues.

NEC forecasts an operating income of 60.0 billion yen, a decrease of 40.0 billion yen from the previous forecast due to the worsening performance in the field of semiconductors within the Electron Devices business. NEC forecasts an ordinary income of 40.0 billion yen, a decrease of 20.0 billion yen due to worsening operating income, despite the improvement in non-operating income (loss) due to a decrease in interest expenses, losses on abandonment of noncurrent assets and other non-operating losses.

NEC expects net income to remain 10.0 billion yen due to extraordinary income from asset reorganization and reduction in extraordinary loss and others, despite a decrease in ordinary income.

2)Non-consolidated financial forecast

NEC expects net income of 30.0 billion yen, a 10.0 billion yen improvement as compared with the previous forecast, mainly due to an improvement in non-operating income (loss) and extraordinary income from asset reorganization. Sales and operating income will remain the same as the previous forecast.

3. About Dividends

As previously announced, NEC expects to pay an annual dividend of 4 yen per share of common stock for the fiscal year ending March 31, 2010.

***

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, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (ix) 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 not granted.


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NEC Press Contacts (Japan):

Kosuke Yamauchi
NEC Corporation
+81-3-3798-6511
E-Mail:k-yamauchi@ce.jp.nec.com

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