Renesas Electronics Announces Consolidated Forecasts and Recording of Special Loss for the First Quarter Ending June 30, 2016
By Business Wire News
By Business Wire News
Due to impacts of the Kumamoto Earthquake that occurred after April 14, 2016, it was difficult to disclose the forecast of consolidated results for the three months ending June 30, 2016 at the time Renesas Electronics Corporation (TSE:6723) announced its financial results for the year ended March 31, 2016 on May 11, 2016. For that reason, Renesas decided to postpone the announcement of the forecast.
Today, Renesas announced the consolidated financial forecasts and recording of special loss for the three months ending June 30, 2016.
1.Consolidated forecasts for the first quarter of the fiscal year ending December 2016
(April 1, 2016 to June 30, 2016)
In millions of yen
| Forecasts as of|
June 7, 2016
Results for the
three months ended June 30, 2015
Renesas Semiconductor Manufacturing Co., Ltd.’s Kawashiri Factory and some subcontractor companies suffered damages to their facilities during the 2016 Kumamoto Earthquake. Renesas Group expects an opportunity loss of 14.0 billion yen for its net sales and 8.0 billion yen loss for its operating income due to suspending production. The Group also expects to record a loss of 8.0 billion yen, caused by the temporary shutdown and lower operations, the repair cost of fixed assets, including buildings and manufacturing equipment, and the loss on disposal of inventories, as special loss.
The consolidated forecasts for the three months ending June 30, 2016 are calculated at the rate of 110 yen per USD and 124 yen per Euro.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Amongst other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets may cause actual results to differ from the projected results forecast. Renesas Electronics Group plans to implement a change of the fiscal term in which the fiscal year-end will change from March 31 to December 31 starting from the fiscal year 2016. The change is subject to approval of “a partial amendment to its Articles of Incorporation” at the 14th Ordinary General Shareholders’ Meeting to be held on June 28, 2016.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE:6723), the world’s number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in 20 countries worldwide. More information can be found at www.renesas.com.