TOKYO—NEC, a leading communications vender in Japan, announced that the firm is expecting its revenues for fiscal year (FY) 2001 ending March 2002 to decline by 2 percent, and the firm will have a 150 billion yen (US$1.2 billion) net loss for the period. To revitalize the business, NEC is promoting a restructuring program.
To promote the program, the firm reported 25 billion yen (US$203 million) in special losses for the first half of this fiscal year and is going to report 150 billion yen in special loss for the second half.
NEC also announced that the firm’s revenues for the first half of FY 2001 ending September 2001 dropped by 0.4 percent and ran a 29.8 billion yen (US$242 million) net loss due to a bad semiconductor business. The semiconductor business unit ran a 55.3 billion yen (US$449 million) operational loss for the same period.
Although the company’s whole business was gloomy, NEC’s communications business unit achieved a good result. Sales of NEC’s communications infrastructure business for the first half of FY 2001 was up by 39 percent to 633 billion yen (US$5.1 billion), and its mobile business for the same period was up 61.8 percent to 335 billion yen (US$2.7 billion). The firm is expecting the growth rate for these two communications business units will drop for the second half of this fiscal year, but the strong sales will continue over the period.
