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

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


*** For immediate use April 28, 2010

Tokyo, April 28, 2010 - NEC Corporation (NEC; TSE: 6701), a leading network, communications and information technology company, announced today revisions to its full-year consolidated financial forecasts for the fiscal year ended March 31, 2010.

1) Forecast Revision for the Fiscal Year Ended March 31, 2010 (April 1, 2009 - March 31, 2010)

(In billions of yen)

  Sales Operating income(loss) Ordinary income(loss) Net income(loss)
Forecast as of January 28, 2010 (A) 3,660.0 60.0 40.0 10.0
Forecast as of April 28, 2010 (B) 3,580.0 51.0 49.0 11.0
Difference (B-A) -80.0 -9.0 9.0 1.0
Change (%) -2.2% -15.0% 22.5% 10.0%
(For reference)
Results for the previous fiscal year
(April 2008 - March 2009)
4,215.6 -6.2 -93.2 -296.6

2) Reasons for Revisions of Financial Forecasts

Among continuing strict business conditions, NEC forecasts sales of 3,580.0 billion yen, 80.0 billion yen less than the previous forecast, due to a decrease in sales in business areas that include the Network Systems business and IT Services business.

NEC forecasts operating income of 51.0 billion yen, 9.0 billion yen less than the previous forecast, due to a decrease in Network Systems sales. Despite a decrease in operating profit resulting from decreased sales, NEC expects ordinary income of 49.0 billion yen, 9.0 billion yen more than the previous forecast, due to improved income from the reversal of provision for contingent loss and improving equity in earnings of affiliates.

NEC expects net income of 11.0 billion yen, an increase of 1.0 billion yen as compared with the previous forecast, due to an improvement in ordinary income, despite an extraordinary loss from business structure improvement expenses and others.

3) Regarding Dividends

As previously announced, NEC expects to pay an annual dividend of 4 yen per share of common stock for the fiscal year ended March 31, 2010. The interim dividend was 0 yen per share.

***

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.

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (C)2010 NEC Corporation.

NEC Press Contact (Japan):

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

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