NEC Corp. and Fujitsu Ltd. enjoyed soaring group pretax profits in fiscal 2000, thanks to brisk global sales of electronic devices and telecommunications equipment, according to their earnings reports released Thursday.
NEC reported 56.6 billion yen in consolidated net profits for the year that ended March 31, a more than fivefold increase on the previous year’s result.
Consolidated pretax profits tripled to 92.32 billion yen and consolidated operating profits rose 67.7 percent to 185.18 billion yen.
Group sales came to 5.41 trillion yen, up 8.4 percent from the previous year.
In addition to the sales gain, cost reductions and proceeds from the sale of shares in NEC Soft Ltd. — when it was listed in July — contributed to the steep profit increase, NEC said.
On a parent-only basis, NEC posted pretax profits of 63.92 billion yen, down 2.9 percent from a year earlier, and operating profits of 93.01 billion yen, down 16.3 percent. Its net profits rose 3.7 percent to 23.67 billion yen. Sales rose 8.3 percent to 4.1 trillion yen.
NEC predicts consolidated pretax profits of 110 billion yen, consolidated net profits of 65 billion yen and group sales of 5.85 trillion yen for fiscal 2001, which will end March 2002.
On an unconsolidated basis, it forecasts pretax profits of 70 billion yen, net profits of 30 billion yen and sales of 4.4 trillion yen for fiscal 2001.
Meanwhile, Fujitsu Ltd. reported record sales, pretax profits and operating profits on a consolidated basis, according to company officials.
Its consolidated pretax profits nearly tripled to 189.75 billion yen while consolidated operating profits jumped 62.7 percent to 244.03 billion yen.
Consolidated net profits fell 80.1 percent from a year earlier to 8.52 billion yen due mainly to a one-off charge on corporate pension funds and the restructuring of a U.S. affiliate, company officials said.
On a parent-only basis, Fujitsu posted 107.47 billion yen in pretax profits, a nearly sevenfold jump from the previous year’s figure. Operating profits rose 86.4 percent to 100.28 billion yen and net profits leaped to 46.66 billion yen, more than triple the previous year’s result. Sales rose 4 percent to 3.38 trillion yen.
The company predicts consolidated pretax profits of 160 billion yen, consolidated net profits of 50 billion yen and group sales of 5.8 trillion yen for the current business year, which ends March 2002.
On an unconsolidated basis, it forecasts pretax profits of 80 billion yen, net profits of 40 billion yen and sales of 3.6 trillion yen for fiscal 2001.
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