Thursday, 29th October 2009
In Business In Japan,
Japan NEC reports large losses
Japanese firm NEC Corp has revealed a net loss of 43.6 billion yen ($482 million) for the six months leading up to September this year.
This compares to a profit of 1.8 billion yen for the same period a year earlier.
The company, which is the biggest PC maker in Japan, also cut its full-year operating profit outlook by 40 per cent, from 100 billion yen to 60 billion yen, blaming the anaemic results on "reduced demand from the economic downturn, which resulted in sales declines throughout all business segments".
This makes NEC's estimate for the year ending March 2010 far below the 70.4 billion yen net profit which was predicted by 15 market analysts polled by Thomson Reuters earlier this year.
As part of cost-cutting measures, the firm is set to cut 20,000 jobs around the globe and is to pull out of the personal computer market in the US and Europe.
Written by Kimberley Homer.