OREANDA-NEWS. NEC Corporation (NEC; TSE: 6701) today announced revisions to the consolidated financial forecasts announced on January 28, 2016 for the fiscal year ending March 31, 2016.

1. Revised consolidated financial forecasts for the fiscal year ending March 31, 2016 (April 1, 2015 to March 31, 2016)

(In billions of yen)

2. Reasons for financial forecast revisions

NEC forecasts net sales of 2,900.0 billion yen, 200.0 billion yen less than the previous forecast. This is mainly due to, decreased sales in the Public business by delay of large-scale projects into the next fiscal year and loss of prospective projects, and a decrease in sales of the Telecom Carrier business as a result of investment restraint in the Japanese market and slower growth in overseas business, as well as decreased sales in the Smart Energy business.

NEC forecasts operating income of 100.0 billion yen, 35.0 billion yen less than the previous forecast, mainly due to an increase in loss-making projects in the Public business and the Telecom Carrier business, in addition to a decrease in net sales.

NEC also forecasts ordinary income of 85.0 billion yen, 35.0 billion yen less than the previous forecast, due to a decrease in operating income.

NEC forecasts profit attributable to owners of parent of 65.0 billion yen, same as the previous forecast, despite a decrease in ordinary income. This is mainly because a decrease of tax expense of about 24.0 billion yen is expected for the fiscal year ending March 2016, as disclosed today in the "NEC announces debt waiver of a consolidated subsidiary" press release.

3. Regarding dividends

As previously announced, NEC expects to pay a year-end dividend of 6 yen per share of common stock for the fiscal year ending March 31, 2016.