ID :
43425
Fri, 01/30/2009 - 21:33
Auther :
Shortlink :
https://oananews.org//node/43425
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NEC sees 290 bil. yen net loss for FY 2008, cuts over 20,000 jobs+
TOKYO, Jan. 30 Kyodo - NEC Corp. said Friday it will cut more than 20,000 jobs worldwide by the end of March 2010 as it is likely to incur 290 billion yen in group net losses for the current business year due to its struggling chip operations and flagging sales
of other products amid the global economic slowdown.
The extensive layoffs are more or less equally divided between temporary and
permanent workers and involve over 8,000 workers in Japan and more than 12,000
employees abroad.
The projected loss, its first red-ink in three years, compares with its October
estimate of a 15 billion yen net profit and a year-earlier profit of 22.68
billion yen.
The electronics maker attributed the dismal earnings outlook partly to a
stronger yen and slumping sales in key products such as semiconductors and
computers.
In its second downward revision of its earnings projections for fiscal 2008
through March, the Japanese electronics giant now expects to post 30 billion
yen in group operating loss, instead of a 120 billion yen profit estimated in
October and a year-before profit of 156.77 billion yen.
It also cut its sales estimate from 4.6 trillion yen to 4.2 trillion yen, down
9.0 percent from a year earlier.
NEC said it will not pay any dividend for the year. In fiscal 2007, the company
paid an annual dividend of 8 yen per share.
As part of its streamlining efforts to improve profitability, NEC also said it
will aim to trim procurement and subcontract costs and reduce the pay of senior
and executive officials.
In the April-December period, NEC chalked up a group net loss of 129.01 billion
yen, compared with a year-before loss of 9.98 billion yen, and an operating
loss of 11.36 billion yen, a reversal from a year-before profit of 43.45
billion yen, on sales of 3.08 trillion yen, down 3.8 percent.
On Thursday, NEC's chip-making subsidiary NEC Electronics Corp. said it expects
a group operating loss of 55 billion yen for fiscal 2008.
Major semiconductor makers worldwide have been struggling to ride out a severe
industry slump caused mainly by price erosion from a supply glut and falling
demand as a result of the deepening global economic troubles.
Sources have said Toshiba and NEC have begun talks on merging their
semiconductor operations in seeking to boost their profitability to stay
competitive.
==Kyodo
of other products amid the global economic slowdown.
The extensive layoffs are more or less equally divided between temporary and
permanent workers and involve over 8,000 workers in Japan and more than 12,000
employees abroad.
The projected loss, its first red-ink in three years, compares with its October
estimate of a 15 billion yen net profit and a year-earlier profit of 22.68
billion yen.
The electronics maker attributed the dismal earnings outlook partly to a
stronger yen and slumping sales in key products such as semiconductors and
computers.
In its second downward revision of its earnings projections for fiscal 2008
through March, the Japanese electronics giant now expects to post 30 billion
yen in group operating loss, instead of a 120 billion yen profit estimated in
October and a year-before profit of 156.77 billion yen.
It also cut its sales estimate from 4.6 trillion yen to 4.2 trillion yen, down
9.0 percent from a year earlier.
NEC said it will not pay any dividend for the year. In fiscal 2007, the company
paid an annual dividend of 8 yen per share.
As part of its streamlining efforts to improve profitability, NEC also said it
will aim to trim procurement and subcontract costs and reduce the pay of senior
and executive officials.
In the April-December period, NEC chalked up a group net loss of 129.01 billion
yen, compared with a year-before loss of 9.98 billion yen, and an operating
loss of 11.36 billion yen, a reversal from a year-before profit of 43.45
billion yen, on sales of 3.08 trillion yen, down 3.8 percent.
On Thursday, NEC's chip-making subsidiary NEC Electronics Corp. said it expects
a group operating loss of 55 billion yen for fiscal 2008.
Major semiconductor makers worldwide have been struggling to ride out a severe
industry slump caused mainly by price erosion from a supply glut and falling
demand as a result of the deepening global economic troubles.
Sources have said Toshiba and NEC have begun talks on merging their
semiconductor operations in seeking to boost their profitability to stay
competitive.
==Kyodo
