Renesas expands FY 2012 group net loss estimate on weak chip demand
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Feb. 8 -- (Kyodo) _ Struggling Japanese chipmaker Renesas Electronics Corp. on Friday widened its group net loss projection to 176 billion yen from an earlier expected 150 billion yen due to sluggish chip demand amid the stagnant global economy.
The projected net loss is far higher than 62.60 billion yen for the previous year.
The company now expects to incur a full-year group operating loss of 26 billion yen instead of an earlier forecast 21 billion yen profit, after posting an operating loss of 56.75 billion yen in fiscal 2011.
The company also slashed its sales estimate by 6.1 percent from an earlier projection to 770 billion yen, down 12.8 percent from the previous year.
In the April to December period, Renesas posted a group net loss of 161.72 billion yen, larger than 44.42 billion yen a year earlier, and a group operating loss of 31.24 billion yen against 33.17 billion yen.
Its consolidated sales in the first nine months of fiscal 2012 fell 10.8 percent to 600.40 billion yen, as semiconductor demand was hit by a drop in automobile and electronics products output for China, the company said.
The company plans to receive up to 200 billion yen in aid from the government-backed Innovation Network Corp. of Japan and the chipmaker's eight key clients, including Toyota Motor Corp.
(c) 2013 Kyodo News International, Inc.
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