TOKYO -- NEC Corp. today reported net income of $190 million (20.5 billion yen) for the six months ended Sept. 30, compared to a $457 million loss for the same period a year ago. Sales for the first fiscal half totaled $22.9 billion (2.48 trillion yen), compared to $21.2 billion for the similar 1999 period.
The Japanese electronics giant said it was on target to reach its projected net income of $1.85 billion by March 31, 2003. The sales goal for the fiscal year ending March 31, 2003 is $62 billion.
In a breakdown by divisions, NEC Electron Devices had operatingincome of $555 million in the first half, a 15-fold increase over the same period a year ago. Sales for the group totaled $6 billion, up 21% over the 1999 period. NEC Solutions, which includes computer operations, had oiperating profit of $277 million, up 118%, on sales of $9.3 billion, which were down 3% from the year-ago period. NEC Networks had operating income of $195 million, up 48%, on sales of $7.2 billion, up 9%.
NEC said it was taking further actions to tighten management
controls. This included revising its board of directors to make at least one-third of the membership from outside the corporation.
The company also said it was continuing to investigate the use of stock options as an executive incentive, but still had made no decision to implement any such program.
NEC said it was carrying on its books a $47 million loss in value of forward currency exchange agreements at their present value. The firm also said unrealized gains on security investments of $120 million.