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NEC Announces Differences between Financial Forecasts and Results for the Fiscal Year Ended March 31, 2013 and Extraordinary Loss
*** For immediate use April 26, 2013
Tokyo, April 26, 2013 - NEC Corporation today announced differences between the consolidated financial forecasts announced on January 31, 2013 and results for the fiscal year ended March 31, 2013 as well as the recording of extraordinary loss.
1. Differences between the consolidated financial forecasts and results for the fiscal year ended March 31, 2013
(April 1, 2012 to March 31, 2013)
| Net Sales | Operating income | Ordinary income | Net income | |
|---|---|---|---|---|
| Previous Forecast (A) (announced January 31, 2013) |
3,150.0 | 100.0 | 70.0 | 20.0 |
| Results (B) | 3,071.6 | 114.6 | 92.0 | 30.4 |
| Difference (B) - (A) | -78.4 | 14.6 | 22.0 | 10.4 |
| Change (%) | -2.5% | 14.6% | 31.5% | 52.2% |
| (Reference) FY ended March 31, 2012 |
3,036.8 | 73.7 | 42.1 | -110.3 |
2. Reasons for Differences in Forecasts and Results
NEC recorded net sales of 3,071.6 billion yen, 78.4 billion yen less than the previous forecast, mainly due to a decrease in sales in the Carrier Network business and the Personal Solutions business.
NEC recorded operating income of 114.6 billion yen, 14.6 billion yen more than the previous forecast, mainly due to cost reductions and the promotion of cost efficiency, in spite of worsening operating income as the result of a decrease in sales. NEC recorded ordinary income of 92.0 billion yen, 22.0 billion yen more than the previous forecast, mainly due to improved operating income.
NEC recorded net income of 30.4 billion yen, 10.4 billion yen more than the previous forecast, mainly due to improved ordinary income.
3. Recording of Extraordinary Loss
NEC recorded impairment loss of 21.9 billion yen on fixed assets for unprofitable businesses.
CAUTIONARY STATEMENTS
This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them.
You should not place undue reliance on forward-looking statements, which reflect NEC's analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NEC's markets, (ii) fluctuating demand for, and competitive pricing pressure on, NEC's products and services, (iii) NEC's ability to continue to win acceptance of NEC's products and services in highly competitive markets, (iv) NEC's ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC's business and operations, (vi) NEC's ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (ix) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise.
The management targets included in this material are not projections, and do not represent management's current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NEC's business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the applicable securities laws is not granted.
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