TOKYO, Japan, July 29, 2010 — Renesas Electronics Corporation (TSE: 6723) today announced the revisions to its consolidated full-year financial forecasts for the fiscal year ending March 31, 2011, which the company announced on May 11, 2010. The company also announced its consolidated financial forecasts for the six months ending September 30, 2010 as well as its forecasts of cash dividends for the year ending March 31, 2011.
1. Consolidated forecasts for the six months ending September 30, 2010
(For the six months ending September 30, 2010)
In millions of yen
| Net Sales | Operating Income (loss) | Ordinary Income (Loss) | Net Income (Loss) | Net Income (Loss) per Share (Yen) | |
|---|---|---|---|---|---|
| Previous forecasts (May 11, 2010) | --- | --- | --- | --- | --- |
| Revised forecasts (July 29, 2010) | 590,000 | (2,000) | (8,000) | (42,000) | (100.69) |
| Increase(decrease) | --- | --- | --- | --- | --- |
| Percent change | --- | --- | --- | --- | --- |
Consolidated net sales for the six months ending September 30, 2010 are expected to be 590.0 billion yen and sales from semiconductors are expected to account 540.0 billion yen. Operating loss is expected to be 2.0 billion yen and ordinary loss is expected to be 8.0 billion yen, and net loss is expected to amount 42.0 billion yen. Despite the continuing recovery trend, the Group expects a small operating loss to remain for the six months ended September 30, 2010, owing to the post-merger integration cost.
2. Revised forecasts for consolidated financial results for the year ending March 31, 2011
(For the year ending March 31, 2011)
In millions of yen
| Net Sales | Operating Income (loss) | Ordinary Income (Loss) | Net Income (Loss) | Net Income (Loss) per Share (Yen) | |
|---|---|---|---|---|---|
| Previous forecasts (May 11, 2010) | 1,170,000 | --- | |||
| Revised forecasts (July 29, 2010) | 1,190,000 | 7,000 | (5,000) | (80,000) | (191.79) |
| Increase (decrease) | 20,000 | --- | |||
| Percent change | 1.7 | --- | --- | --- | --- |
| Reference: Results for the year ended March 31, 2010 | 1,062,398 | (113,251) | (125,336) | (137,776) | --- |
Note 1: The consolidated financial results for the year ended March 31, 2010 are calculated based on the sum of respective figures at the former NEC Electronics Corporation and the former Renesas Technology Corp. The amount of “Net sales” and “Sales from semiconductors” of former Renesas Technology Corp. are reclassified to be consistent with the sales amount of former NEC Electronics Corporation.
As for the forecasts for the fiscal year ending March 31, 2011: net sales are expected to be 1,190.0 billion yen, 20.0 billion yen up from the initial forecast (announced on May 11, 2010); semiconductor sales are expected to be 1,090.0 billion yen; operating income is expected to be 7.0 billion yen; ordinary loss is expected to be 5.0 billion yen; and net loss is expected to be 80.0 billion yen.
Semiconductor sales are expected to increase from the corresponding period of the previous year in all three product areas, including MCU (microcontrollers), SoC (system-on-chip) solutions and analog and power devices, owing to the market recovery that leads to increase in demand. Of them, MCU sales are expected to mark drastic increase mainly due to solid sales of microcontrollers for automobiles and industrial systems. Sales of analog and power devices are also expected to increase rapidly, owing to continuously steady performance of the general-purpose discrete devices, including power MOSFETs, diodes, and small signal transistors. Semiconductor sales for the year ending March 31, 2011 are expected to increase by approximately 16 percent year on year as compared with the sum of semiconductor sales at the former NEC Electronics Corporation and the former Renesas Technology Corp. before the merger in the fiscal year ended March 31, 2010.
Operating income is expected to be 7.0 billion yen. Despite an increase in expenses for merger and business acquisition, a profit improvement from sales increase and fixed-cost reductions that had been conducted respectively by the former companies (NEC Electronics Corporation and Renesas Technology Corp.), as well as cost reductions from reorganizing the Group's manufacturing structure as part of the common corporate policies of the “100-day project” and merger synergies.
Ordinary loss is expected to be 5.0 billion yen, owing to increase of non-operating expenses including foreign exchange losses and interest expenses.
Net loss is expected to be 80.0 billion yen, due to recording of special loss of approximately 77.0 billion yen resulting from reorganizing the Group's manufacturing structure and streamlining human resources, measures that are part of the common corporate policies of the “100-day project”.
The consolidated financial forecasts for the fiscal year are calculated at the rate of 90 yen per USD, and 110 yen per Euro.
3. Forecasts for cash dividends for the year ending March 31, 2011
| Dividends per share | |||||
|---|---|---|---|---|---|
| At the end of first quarter | At the end of second quarter | At the end of third quarter | At the end of year | Total | |
| Previous forecasts (May 11, 2010) | – | – | – | – | – |
| Revised forecasts (July 29, 2010) | 0.00 | – | 0.00 | 0.00 | |
| Results for the three months ended March 31, 2010 | – | ||||
| Results for the year ended March 31, 2010 | – | 0.00 | – | 0.00 | 0.00 |
For the year ending March 31, 2011, Renesas Electronics expects to post net losses. Therefore the company intends to forgo interim and year-end dividend payments but will work toward improved results that will allow dividends to be reinstated at the earliest possible date. Please refer to Renesas Electronics' press release “Renesas Electronics Reports Financial Results for the First Quarter Ended June 30, 2010” issued on July 29, 2010 for more details.
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.