NEC announces financial forecast revisions
Tokyo, Japan - February 29, 2016 - NEC Corporation (NEC; TSE: 6701) today announced revisions to the consolidated financial forecasts announced on January 28, 2016 for the fiscal year ending March 31, 2016.
1. Revised consolidated financial forecasts for the fiscal year ending March 31, 2016 (April 1, 2015 to March 31, 2016)
(In billions of yen)
|Profit attributable to owners of parent|
|Previous Forecast (A)
(announced January 28, 2016)
|Revised Forecast (B)||2,900.0||100.0||85.0||65.0|
FY ended March 31, 2015
2. Reasons for financial forecast revisions
NEC forecasts net sales of 2,900.0 billion yen, 200.0 billion yen less than the previous forecast. This is mainly due to, decreased sales in the Public business by delay of large-scale projects into the next fiscal year and loss of prospective projects, and a decrease in sales of the Telecom Carrier business as a result of investment restraint in the Japanese market and slower growth in overseas business, as well as decreased sales in the Smart Energy business.
NEC forecasts operating income of 100.0 billion yen, 35.0 billion yen less than the previous forecast, mainly due to an increase in loss-making projects in the Public business and the Telecom Carrier business, in addition to a decrease in net sales.
NEC also forecasts ordinary income of 85.0 billion yen, 35.0 billion yen less than the previous forecast, due to a decrease in operating income.
NEC forecasts profit attributable to owners of parent of 65.0 billion yen, same as the previous forecast, despite a decrease in ordinary income. This is mainly because a decrease of tax expense of about 24.0 billion yen is expected for the fiscal year ending March 2016, as disclosed today in the "NEC announces debt waiver of a consolidated subsidiary" press release.
3. Regarding dividends
As previously announced, NEC expects to pay a year-end dividend of 6 yen per share of common stock for the fiscal year ending March 31, 2016.
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.
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