NEC Slashes Profit Forecast by 40 Percent

By Cindy Waxer February 25, 2011

Electronics giant NEC has cut its profit forecast in the wake of decreasing sales in the areas of IT services and personal computers. The Japanese company forecasts sales of 3,200.0 billion yen, 100.0 billion yen less than the previous forecast.

What’s more, NEC forecasts operating income of 60.0 billion yen, 40.0 billion yen less than the previous forecast. NEC expects ordinary income of 10.0 billion yen, 45.0 billion yen less than the previous forecast, due to worsening operating income. As well, NEC anticipates net income of 0.0 yen, 15.0 billion yen less than the previous forecast.

At the same time, NEC has recently revealed plans to strengthen its small and midsized liquid crystal panel business. Hoping to seize on an expanding market, in July 2011, NEC LCD Technologies will become a joint venture company with the AVIC International Group, who will entrust the management of its liquid crystal panel business to Tianma and take control of 70 percent of NEC Corporation's shares in NEC LCD Technologies.

According to a press release from the company, “NEC LCD Technologies will continue to be a Japan based liquid crystal enterprise that is focused on small and midsized industrial use liquid crystal panel business. This alliance enables NEC LCD Technologies to combine its world-class technology strength with Tianma's advanced production capacity as part of becoming a leading global company that quickly provides worldwide markets with high quality, competitively priced small and midsize panels for industrial use.”

Edited by Tammy Wolf

TechZone360 Contributing Editor

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