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Japan NEC tumbles into red, cuts earnings forecast

Japan NEC tumbles into red, cuts earnings forecast

Japan's NEC Corp. fell deep into the red in the July-September quarter as a weak global economy sapped business throughout the information technology company, forcing it to cut full-year forecasts.
The Tokyo-based company booked a net loss of 9.75 billion yen ($110 million) for the quarter, compared with 1.28 billion yen profit a year earlier, it said Thursday.
The company _ which provides IT services, network systems and personal electronics _ said economic declines had bottomed out in North America, Europe and China but the overall business environment remained harsh.
"The Japanese economy also continued to exhibit severe conditions through excesses in employment and production capacity, in addition to low consumer spending," said Hitachi.
It posted operating income of 2.34 billion yen on revenue of 875.23 billion yen ($9.8 billion) for the quarter.
For the April-September half, NEC incurred a 43.59 billion yen net loss, deteriorating sharply from a 1.76 billion yen profit a year earlier. Operating losses came to 37.7 billion yen while revenue declined 22 percent to 1.65 trillion yen.
As a result, NEC cut its earnings forecasts for the fiscal year through March 2010.
It expects to book an operating profit of 60 billion yen on sales of 3.66 trillion yen. It had previously projected a 100 billion yen operating profit and revenue of 3.73 trillion yen.
The company kept its forecast for 10 billion yen in net profit.


Updated : 2020-12-02 11:52 GMT+08:00