TOKYO, Japan, May 18, 2011 — Renesas Electronics Corporation (TSE: 6723) today announced the recording of special loss in the fiscal year ended March 31, 2011 in connection with damage from the March 11 Great East Japan Earthquake.
1. Outline of the special loss in connection with the earthquake
Renesas Electronics Group's multiple production sites located in the Tohoku and Kanto area, including the Naka factory in Hitachinaka, Ibaraki suffered damage to their buildings and manufacturing equipment. Due to the impact of the earthquake, the Group recorded a loss on disaster of 49,504 million yen (including an insurance income receivable of 16,000 million yen) as part of its special loss.
Repair cost of fixed assets and loss on cancellation of lease contracts are recorded as a provision for loss on disaster in the consolidated balance sheet.
[Loss on disaster]
In millions of yen
| Repair cost of fixed assets | 43,116 |
|---|---|
| Loss on disposal of inventories | 7,283 |
| Loss on disposal of fixed assets | 6,187 |
| Fixed costs during the temporary shutdown period of operations | 5,919 |
| Loss on cancellation of lease contracts | 2,987 |
| Other | 12 |
| Sub total | 65,504 |
| Insurance income receivable | (16,000) |
| Total | 49,504 |
2. Impact on Renesas Electronics financial results for the year ended March 31, 2011
Refer to Renesas Electronics' announcement of full-year financial results issued today on May 18, 2011 for the impact of the special loss on the company's financial results for the year ended March 31, 2011.
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) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.