FOR IMMEDIATE RELEASEDensei-Lambda Raises Sales and Profit ForecastsTOKYO, September 28, 2000 - Densei-Lambda K. K..(TSE 1st Section, 6917), a leading manufacturer of power systems, today announced that it has raised its consolidated and unconsolidated sales and profit projections for the half-year ending September 30, 2000 and the full-year ending March 31, 2001. Following a merger between Nemic Lambda K. K. and Nippon Electric Industries in October 1999, Densei-Lambda quickly divested non-core businesses to focus on three core businesses: switching power systems (SPS), uninterruptible power systems (UPS), and related services. Over the last few months the SPS business has seen sustained, strong demand for its products largely from customers in the semiconductor and IT-related industries. This is expected to result in significantly better than expected performance and consolidated sales forecasts for the fiscal year to March 2001 have been raised by 15.3% and by 19.6 % for the six months to September 2000. The UPS business is performing in line with expectations. On a consolidated basis orders received are projected to be 28.0 billion yen for the interim period and 57.0 billion yen for the full year. On an unconsolidated basis orders received are estimated to be 21.5 billion yen for the interim period and 43.5 billion yen for the full year. Major overseas production facilities have been expanded and have been operating at full capacity to cope with the strong demand. Consolidated and unconsolidated profit forecasts have also been raised as shown in the table below principally reflecting increased sales and improved capacity utilization. Takeo Suzuki, President of Densei-Lambda said, ”We are clearly benefiting from the upswing in demand for our SPS systems from customers globally. We have shifted some production overseas and thus the performance at the consolidated level is expected to be better than that at the unconsolidated parent level. Last year we rapidly and successfully restructured our operations, disposed of non-core businesses and revamped our management team. This year, we are taking full advantage of the strong demand for SPS systems. In UPS we are introducing products and technologies from our sister company, Powerware of the USA, one of the top two UPS manufacturers in the world. We plan to offer new products, expand our market share and improve our margins in this business as we take full advantage of Powerware fs strengths. We are focused on developing as a growth company for the long term. We aim to concentrate on our core businesses and become one of the top manufacturers of switching power supplies and uninterruptible power systems both in Japan and in the global market.” Revised projections are shown in the tables below. (1) Unconsolidated Business Projections for Six Months Ending September 30, 2000 (In million yen)
(2)Consolidated Business Projections for Six Months Ending September 30, 2000 (In million yen)
(3) Unconsolidated Business Projections for Full Year to March 31, 2001 (In million yen)
(4) Consolidated Business Projections for Full Year to March 31, 2001 (In million yen)
For further information, please contact: Masami Kobashi, Director, Densei-Lambda Tel: 3447-4411 Notes to Editors About Densei-Lambda: 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 Systemfs 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. |