OREANDA-NEWS. The worldwide economy during the six months ended September 30, 2013 was characterized by a continuing economic recovery in the United States, mainly due to the steady performance of consumer spending in response to the improving employment situation and the stable corporate sector, as well as (ii) a slow economic recovery in emerging countries, such as China, where economic recovery was sluggish mainly due to measures to curb investment by the government.

As for the Japanese economy, although the momentum of the recovery of consumer spending slowed, the recovery of capital investment and increasing exports due to a depreciation of the yen contributed to a trend of continuing recovery. Under this business environment, the NEC Group recorded consolidated net sales of 1,383.1 billion yen for the six months ended September 30, 2013, a decrease of 64.7 billion yen (-4.5%) year-on-year, mainly due to decreased sales in the System Platform business and decreased sales in Others due to the mobile phone sales business and the electronic components business no longer being consolidated, despite increased sales in the Public business and the Enterprise business.

Regarding profitability, operating income (loss) worsened by 47.0 billion yen year-on-year, to an operating income of 0.4 billion yen, mainly due to the sale of patents related to LCD in the corresponding period of the previous fiscal year, in add ition to decreased sales.

In terms of ordinary income (loss), the NEC Group recorded a loss of 14.5 billion yen, declining by 44.4 billion yen year -on-year, mainly due to the worsening of operating income (loss).

Income (loss) before income taxes and minority interests was a loss of 9.7 billion yen, declining by 39.9 billion yen year-on-year, despite gain on sales of subsidiaries and affiliates' stocks, mainly due to business structure improvement expenses, in addition to the worsening of ordinary income (loss).

Net income (loss) for the first half was a loss of 26.2 billion yen, a year-on-year worsening of 34.1 billion yen.