Japan's NEC posts smaller loss last quarter

posted: 13 DAYS 1 HOUR AGO

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TOKYO -Japan's NEC Corp. said Thursday it narrowed its losses last quarter thanks to a lower tax burden and smaller restructuring expenses.

The Tokyo-based electronics maker recorded a net loss of 9.61 billion yen ($106 million) in the October-December period, down from 130.77 billion yen a year earlier.

The better showing came even as revenues decreased 13 percent to 825.36 billion yen from 948.34 billion.

NEC, which provides IT services, network systems and personal electronics, had a smaller loss because it booked a large tax charge and suffered special losses for restructuring during the same period a year ago.

With those off the books, the company came closer to breaking even. It said demand was recovering in Asia with consumers buying more cars and home electronics due to economic stimulus measures. But "the business environment remains severe" overall, the company said.

For the April-December period, the first nine months of its fiscal year, NEC had a net loss of 53.20 billion yen, better than the 129.01 billion loss it booked a year earlier. Revenues fell 20 percent to 2.48 trillion yen from 3.08 trillion yen.

The company kept its forecast for a profit for the full fiscal year through March, aiming for a net gain of 10 billion yen on sales of 3.66 trillion yen.

2010-01-28 06:15:10