Electronics Makers Expect Even Better Results for '05
By Audrey McAvoy
Associated Press
Posted on Wed, Apr. 28, 2004
TOKYO - Global demand for digital electronics helped three Japanese electronics makers post quarterly profits Tuesday, fueling shipments of computer chips and cutting-edge products such as plasma displays.
NEC Electronics, Toshiba and Fujitsu each forecast stronger results for the fiscal year ending next March.
Junshi Yamaguchi, NEC's senior vice president, said he was confident the global semiconductor market would stay firm, despite fears it could soften in the latter half of the year.
NEC said its group net profit totaled 7.59 billion yen ($69 million) in the January-March period, compared with a loss of 275 million yen in the same period in 2003.
Over the next year, NEC may suffer a mild decline in orders for customized chips used in personal computers and digital consumer products such as DVD recorders, Yamaguchi said.
But it should see good sales of chips used in automobiles, measuring equipment and third-generation mobile phone handsets, he said.
Toshiba said net income rose 36 percent to 70.25 billion yen ($644 million) in the quarter from 51.8 billion yen last year as brisk demand for digital electronics lifted semiconductor sales.
A 9.4 percent jump in semiconductor sales contributed to a 40 percent surge in profits for the segment.
But slower personal-computer sales and a shrinking overseas power-plant business pushed down group net revenue for the quarter by 4 percent to 1.646 trillion yen ($15 billion).
Toshiba said it expects its sales to rebound 4 percent during the year through March 2005 as it introduces new PC models and expands its household electronics presence in Asia.
Chip maker and information-technology solutions provider Fujitsu said net income doubled to 100.61 billion yen ($923 million) in the January-March quarter from 50.33 billion yen a year ago, thanks to a sharp rise in semiconductor and plasma-display-panel sales.
The company had restructuring losses of 156 billion yen ($1.43 billion) during the quarter, but these were offset by gains from the transfer of its employee pension fund to the government.
Revenue for the quarter climbed 7.4 percent to 1.557 trillion yen ($14.28 billion).
For the full year ending March 2005, Fujitsu said it expects its net income to jump 41 percent and sales to gain 3.8 percent.
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