NEC Corp. Thursday reported a $1.17 billion net loss in its third fiscal quarter ended Dec. 31, compared to a $6 million profit for the similar quarter a year ago. Sales totaled $8.5 billion, down 9.5% from the same period of 2000.
The firm forecast that for the full fiscal year ending March 31, 2002, it willl incur a net loss of $2.27 billion with sales of $38.4 billion dropping 6% below the previous fiscal year.
NEC officials blamed the loss and sales drop on the dismal global markets for its key products in telecommunications, networking and semiconductors. They said NEC will expand its restructuring efforts in order to return to profitability.
In a breakdown of third fiscal quarter results by business segments, the NEC Electron Devices group incurred a $419 million operating loss on sales of $1.5 billion, which were down 33% from the similar period a year earlier. NEC Networks had a $4 million operating profit on sales of $3.2 billion, and NEC Solutions had a $6 million operating profit on sales of $3.8 billion. The additional net loss resulted from special charges for the corporate restructuring.