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NEC Announces Financial Forecast Revisions

*** For immediate use October 19, 2012

Tokyo, October 19, 2012 - NEC Corporation today announced revisions to the consolidated financial forecasts announced on July 31, 2012 for the first half of the fiscal year ending March 31, 2013.

  1. Revised consolidated financial forecasts for the first half of the fiscal year ending March 31, 2013 (April 1, 2012 to September 30, 2012)

    (In billions of yen)
      Sales Operating
    income (loss)
    Net income
    Previous Forecast (A)
    (announced July 31, 2012)
    Revised Forecast (B)
    Difference (B) - (A)
    Change (%)
    Results for the previous first half of FY ended March 31, 2012

  2. Reasons for Financial Forecast Revisions
    In response to steady domestic IT investment, NEC forecasts sales of 1,448.0 billion yen, 48.0 billion yen more than the previous forecast.

    NEC forecasts operating income of 47.0 billion yen, 46.0 billion yen more than the previous forecast, mainly due to, the improvement in the IT Solutions business and Carrier Network business as a result of increased sales, the execution of structural reforms and the promotion of cost efficiencies as well as the improvement in Others by the sale of LCD related patents. NEC also forecasts ordinary income of 30.0 billion yen, 46.0 billion yen more than the previous forecast, mainly due to improved operating income.

    NEC forecasts net income of 8.0 billion yen, 32.0 billion yen more than the previous forecast, mainly due to improved ordinary income.

    There is no change to the consolidated financial forecasts for the full fiscal year ending March 31, 2013 previously disclosed on July 31, 2012 due to the uncertainty of the economy.

    NEC plans to announce consolidated financial results for the first half of the fiscal year ending March 31, 2013 on October 26, 2012.


NEC Press Contacts (Japan)

Takehiko Kato
NEC Corporation

Joseph Jasper
NEC Corporation

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.

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