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Home > News Room > NEC Announces Revision of Financial Forecasts for the Fiscal Year Ending March 31, 2011

NEC Announces Revision of Financial Forecasts for the Fiscal Year Ending March 31, 2011


*** For immediate use February 25, 2011

Tokyo, February 25, 2011 - NEC Corporation (NEC; TSE: 6701) announced today revisions to its full-year consolidated financial forecasts for the fiscal year ending March 31, 2011.

1) Forecast Revision for the Fiscal Year Ending March 31, 2011 (April 1, 2010 - March 31, 2011)

(In billions of yen)

  Sales Operating income Ordinary income Net income
Forecast as of January 27, 2011 (A) 3,300.0 100.0 55.0 15.0
Forecast as of February 25, 2011 (B) 3,200.0 60.0 10.0 0
Difference (B-A) -100.0 -40.0 -45.0 -15.0
Change (%) -3.0% -40.0% -81.8% -

(For reference)
Results for the previous fiscal year
(April 2009 - March 2010)
3,583.1 50.9 49.4 11.4

2) Reasons for Revisions of Financial Forecasts

Among continuing strict business conditions, NEC forecasts sales of 3,200.0 billion yen, 100.0 billion yen less than the previous forecast, due to a decrease in sales in business areas that include the IT Services business and Personal Solutions business.

NEC forecasts operating income of 60.0 billion yen, 40.0 billion yen less than the previous forecast, due to a decrease in sales in the IT Services business and Personal Solutions business and worsening profitability due to intensified competition. NEC expects ordinary income of 10.0 billion yen, 45.0 billion yen less than the previous forecast, due to worsening operating income. NEC expects net income of 0.0 yen, 15.0 billion yen less than the previous forecast, due to worsening ordinary income.

3) Regarding Dividends

No decision has been made regarding an annual 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, (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 Contact (Japan)

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

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