Renesas red ink ballooned last year

Kyodo

Renesas Electronics Corp.’s group net loss expanded to ¥167.58 billion in the business year that ended in March on sluggish sales and hefty restructuring costs, the ailing chip-maker said Thursday.

Renesas posted a ¥62.60 billion loss the year before.

The manufacturer of microcontrollers and other semiconductor products for autos and electronics makers said its group operating loss had narrowed to ¥23.22 billion, compared with ¥56.75 billion the previous year, on sales of ¥785.76 billion, down 11.0 percent.

The company did not release its earnings projection for the current business year but said it will do so after Innovation Network Corp. of Japan, a government-backed corporate turnaround body, and eight of its top clients, including Toyota Motor Corp., complete their investments in the company.

Renesas is set to receive investments worth ¥150 billion to improve its deteriorating financial profile.

In fiscal 2012, the company said semiconductor sales dropped 7.8 percent from the previous year amid continued stagnation in the global market, leading to a fall in sales in chips used to make personal computers, consumer electronics and other products.