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Renesas Electronics Revises Full-Year Forecasts

  Renesas Electronics Revises Full-Year Forecasts

Business Wire

TOKYO -- February 8, 2013

Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced
semiconductor solutions, today revised its consolidated financial forecasts
for the full year (the period from April 1, 2012 to March 31, 2013), which it
disclosed on December 10, 2012.

1. Revised forecasts for the full-year consolidated financial results

(For the year ending March 31, 2013)                       In millions of yen
  
                                                                            Net
                        (Reference)      Operating   Ordinary   Net         Income
           Net       Sales from      Income     Income    Income     (Loss)
             Sales      Semiconductors   (Loss)      (Loss)     (Loss)      per
                                                                            Share
                                                                            (Yen)
Previous
forecasts
             820,000    760,000          21,000      10,000     (150,000)   (359.60)
(As of
December
10, 2012)
Revised
forecasts
             770,000    711,000          (26,000)    (34,000)   (176,000)   (421.94)
(As of
February
8, 2013)
Increase     (50,000)   (49,000)         (47,000)    (44,000)   (26,000)    -
(decrease)
Percent      (6.1)      (6.4)            -          -         -          -
change
Reference:

Results
for the
year         883,112    786,033          (56,750)    (61,228)   (62,600)    (150.08)

ended
March 31,
2012
                                                                            

Background to the revision of full-year forecasts

As for the sales forecasts for the fiscal year ending March 31, 2013: net
sales are expected to be 770.0 billion yen, 50.0 billion yen down from the
previous forecast (announced on December 10, 2012); sales from semiconductors
are expected to be 711.0 billion yen, 49.0 billion yen down from the previous
forecast.

Sales from semiconductors for the three months ended December 31, 2012, were
lower than the expectation. This was mainly due to a decline in demand of
semiconductors for automotive and industrial applications which were expected
to recover the demand at certain level in the second half of the fiscal year
ending March 31, 2013 as well as semiconductors for consumer electronics whose
sales were expected to be steady through a large-scale custom project,
influenced by production decrease at customers due to the prolonged downturn
of the global economy. In addition to this, production decrease of automotive,
electronic and other equipment for China also brought further impact on demand
of semiconductors through the period. Moreover, the Group expects sales from
semiconductors for the three months ending March 31, 2013 also to fall below
its original expectation due to the same factors at the previous quarter. For
these reasons, the Group has made a downward revision to its forecasts for
both net sales and sales from semiconductors. The Group expects the sales from
three product areas; MCUs, Analog & Power Devices and SoC solutions; to be
lower than the previous forecasts respectively.

As for the earnings forecasts for the fiscal year ending March 31, 2013,
despite the Group’s efforts on holding down costs including personnel
expenses, lower profit is expected along with decrease in sales from
semiconductors and production decrease. Therefore, the Group has revised the
earnings forecasts as follow: operating loss is expected to be 26.0 billion
yen, 47.0 billion yen down from the previous forecast; ordinary loss is
expected to be 34.0 billion yen, 44.0 billion yen down from the previous
forecast; net loss is expected to be 176.0 billion yen, 26.0 billion yen down
from the previous forecast.

The consolidated financial forecasts for the fiscal year ending March 31, 2013
are based on the rate of 83 yen per USD and 109 yen per Euro for the average
of the second half of the fiscal year ending March 31, 2013, 82 yen per USD
and 106 yen per Euro for the average of the full fiscal year ending March 31,
2013.

Details will be explained in Renesas' announcement of financial results for
the third quarter ended December 31, 2012 on February 8, 2013.

Forward-Looking Statements

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.

About Renesas Electronics Corporation

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.

Contact:

Renesas Electronics Corporation
Japan
Ai Kanehira, + 81-3-6756-5555
ai.kanehira.xw@renesas.com
 
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