Renesas Electronics Revises Full-Year Forecasts
Background to the revision of full-year forecasts
Renesas Electronics announced the following revisions to its forecasts for the fiscal year ending March 31, 2011: net sales are expected to total 1,137.0 billion yen, 13.0 billion yen less than the previous forecast; semiconductor sales are expected to total 1,018.0 billion yen, a decrease of 12.0 billion yen; operating income is expected to amount to 14.5 billion yen, an increase of 7.5 billion yen; ordinary income is expected to total 1.0 billion yen, an increase of 6.0 billion yen; and consolidated net loss is expected to total 115.0 billion yen, an increase of 35.0 billion yen.
Among the Semiconductor sales, sales of MCU and system on chips (SoCs) in particular are expected to decline from the previous forecast. Although there is a decline in profit from the decrease in semiconductor sales, consolidated operating income is expected to be 14.5 billion yen, mainly due to the reduced selling and general administrative expenses and promotion of streamlining the R&D expenses from steady implementations of structural reform measures and realization of merger synergies, etc.
Consolidated net loss is expected to be 115.0 billion yen, mainly due to the special loss from executing structural reform measures, which had been announced on January 28, 2011, in addition to the special loss from the Great East Japan Earthquake for repair expenses of fixed assets.
Details will be explained in Renesas Electronics' announcement of full-year financial results on May 18, 2011.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively "we") are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.
Renesas Electronics Europe
Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.