Renesas expects a record annual net loss of $1.9 billion

Article by Christian A., on August 5, 2012

Citing plummeting prices and aggressive overseas competitors, Renesas Electronics predicted that it will post a record annual net loss of 150 billion yen ($1.9 billion). Renesas, the Japan-based manufacturer of microcontroller chips, said that its market share has narrowed considerably in the past few years as the strengthening yen pulls down the overseas profits as competition from companies like Samsung Electronics leads to fewer orders. Renesas is on course to report losses for the third consecutive year. It hopes to avoid bankruptcy by reducing its work force and selling off plants. Last February, Japanese chipmaker Elpida Memory Inc., had filed for bankruptcy protection.

For the quarter from April to June, Renesas reported an operating loss of 17.6 billion yen, which is slightly better than the 19.1 billion-yen loss posted a year ago after it had closed plants after the natural disaster that occurred in Japan last year. Renesas said that it would get back to being profitable on an operating level, predicting a profit of 21 billion yen for the year that ends in March 2013. However, restructuring costs and other losses would result to a net loss that would more than double the 62.6 billion-yen net loss in the prior year. When interviewed at a media briefing after the results were announced, Renesas President Yasushi Akao said that semiconductor sales are expected to improve in the later part of the year.

The company is also likely to post a profit in the full-year to March. However, restructuring costs and special losses will result to a 150 billion-yen net loss. Renesas said that its prediction for a full-year operating profit, which was well ahead of market forecasts for a 28.3 billion-yen operating loss, was made because of a forecasted increase in microcontroller chip sales in the second half of the year. It also anticipated a bump in system-on-chip sales from the second quarter, particularly for chips used in game consoles. Renesas said that semiconductor sales for the year to March are predicted to reach 810 billion yen.

If you liked the article, share on:

Topics: renesas, loss

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries