NEC Posts $1.17 Billion 4Q Loss
Jan. 31, 2002
TOKYO (AP) _ Reeling from plunging global demand, NEC Corp. on Thursday became the latest Japanese electronics giant to post a huge loss for the latest quarter and warn of more losses for the full fiscal year.
NEC posted a group net loss of 155.07 billion yen ($1.17 billion) in the October-December period versus a profit of 8.31 billion yen a year ago. Sales sank 9.5 percent to 1.125 trillion yen ($8.47 billion).
Tokyo-based NEC said its electronics devices division recorded a group operating loss of 55.38 billion yen ($417 million) during the quarter _ reversing its profit of 11.42 billion yen last year.
It cited shrinking demand for mobile-phone handset displays, semiconductors and other electronics devices.
NEC follows rivals Fujitsu Ltd. and Toshiba Corp., which earlier this week announced losses of hundreds of millions of dollars in the latest quarter and widened their forecasts for full-year losses amid worsening demand in the United States, Europe and Asia.
NEC, the world's third-largest maker of semiconductors, on Thursday doubled its previous loss forecast for the full year ending in March to 300 billion yen ($2.26 billion).
Sales for the period are expected to total 5.07 trillion yen ($38.2 billion), down from the 5.3 trillion yen predicted earlier.
NEC also expects its first group operating loss for the full fiscal year. The company said it would lose 57 billion yen ($429.2 million) during the period versus a previous forecast for a profit of 30 billion yen.
NEC's shares fell 0.8 percent to close at 1,050 yen ($7.91) in Tokyo trading on Thursday.