| FOR IMMEDIATE RELEASE | ||||||||||||||||||||
| We Announces Revision of FY 1999 Consolidated Projections, completion of restructuring | ||||||||||||||||||||
| Today We announced a revision of its consolidated full year projections for the fiscal year ended March 31, 2000. The projections for fiscal 1999 were issued on December 7, 1999, at the time of the interim business results announcement. The revised projections are shown in the table below. | ||||||||||||||||||||
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(In million yen) |
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| We announced that it has revised projections for the fiscal year ending March 31, for the reasons listed on the following page. | ||||||||||||||||||||
| On April 28, We announced a revision of its non-consolidated full year projections for the fiscal year ended March 31, which are affected by similar factors to those mentioned above. | ||||||||||||||||||||
| Mr. Takeo Suzuki, President of Densei-Lambda, comments, "We have essentially performed all the necessary restructuring of our businesses following the merger with Nippon Electric Industry in October 1999, and have reached agreement to sell non-core businesses. This rapid restructuring has resulted in some large one-off costs which have adversely affected net profits for the year just ended." | ||||||||||||||||||||
| He added, "I am pleased to say that recent sales and order trends are improving and we are confident of our outlook for sales and profits in the future. Fiscal year 1999 has been a challenging year for Densei-Lambda but we are confident that we have the core business base and management in place to grow our business and take advantage of the many opportunities to grow in Japan and overseas." | ||||||||||||||||||||
| (1) Reasons for increase in recurring profits | ||||||||||||||||||||
| Having reviewed the value of the assets and liabilities of the former Nippon Electric Industry Co. Ltd. (ex-Densei) and with the divestiture of the non-core businesses completed earlier than planned, We have recognized a goodwill decrease. Revised goodwill now amounts to 2,650 million yen which decreased from 9,800 million yen announced on December 7, 1999. | ||||||||||||||||||||
| As a result, expected goodwill amortization for the year just ended now amounts to 530 million yen from the previously anticipated 1,960 million yen announced on December 7, 1999, a reduction of 1,430 million yen. | ||||||||||||||||||||
| These changes have had a positive effect on recurring profits, turning the recurring profit projection to a positive 1,090 million yen from a previously expected loss of 170 million yen. | ||||||||||||||||||||
| (2) Reasons for decrease in net profit forecast | ||||||||||||||||||||
| Net loss for the year is forecast to be 4,010 million yen from the previous estimate of 2,620 million yen. | ||||||||||||||||||||
| We an increased loss of 3,800 million yen due to additional retirement allowances, pension costs and restructuring costs. This loss will be partially offset by a higher than anticipated extraordinary income of 320 million yen, which is mainly attributable to the successful sale of Densei-Lambda shares in a Taiwanese affiliate, Phihong. This resulted in an additional 290 million yen capital gain for Densei-Lambda. | ||||||||||||||||||||
| The divestiture of non-core operations has been completed earlier than expected, and the number of transferred and retired employees was larger than expected. In addition, the voluntary retirement program was received more favorably than expected. Consequently, Densei-Lambda retirement allowance of 1,310 million yen was recognized as an extraordinary loss. | ||||||||||||||||||||
| The costs related to restructuring and divestiture include a 1,020 million yen revaluation of the idle, ex-Densei Tsukuba factory and fixed asset disposal costs of divested businesses. | ||||||||||||||||||||
| In addition, changes in tax related items resulted in a decrease in losses from the previous forecast. These were mainly due to an increase in deferred tax assets of 1,090 million yen as Densei-Lambda applied recent tax-related accounting changes. This benefit will be somewhat offset by additional corporate and inhabitants' taxes of 260 million yen reflecting favorable business performance of Densei-Lambda overseas subsidiaries. | ||||||||||||||||||||
| For reference, Densei-Lambda consolidated sales, recurring profits and net profits for the previous year ended March 31, 1998, are as shown in the table below. | ||||||||||||||||||||
| (In million yen) | ||||||||||||||||||||
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For further information, please contact:
Masami Kobashi, Director, Densei-Lambda Tel: 3447-4411 |
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| Notes to Editors | ||||||||||||||||||||
| About Densei-Lambda: | ||||||||||||||||||||
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Headquartered in Tokyo, Densei-Lambda is the Asian hub of operations for
Invensys Power Systems. Concentrating on its core power systems division, Densei-Lambda
is a research and development center of excellence for DC-DC converters and
switching power supply product development, manufacturing and purchasing. It
also provides marketing, sales and service support for Invensys Power System’s
battery and uninterruptible power supply products.
Invensys Power Systems is the American-based world leader in secure power, energy storage, power conversion and telecom energy systems with 16,000 employees and $2.5 billion in sales. Invensys Power Systems is one of four divisions of Invensys plc, the $12 billion London-based leader in automation and controls. |