| [FOR IMMEDIATE RELEASE] |
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| Densei-Lambda Revises
Fiscal 2001 Full-Year Consolidated and Non-Consolidated Projections |
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| TOKYO, March 20, 2002
- Densei-Lambda K. K. (TSE: 6917), a leading manufacturer of power systems,
today revised downward its consolidated and non-consolidated full-year sales,
ordinary profit, and net income projections for fiscal 2001, ending March
31, 2002, due to a sustained slowdown in key domestic market segments. |
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| Full-year consolidated sales are now expected
to total ¥37.3 billion, compared to a revised forecast of ¥43.0
billion, announced on September 14, 2001. The Company now projects a net
loss of ¥2.2 billion, compared to its originally revised net loss forecast
of ¥1.3 billion. The ordinary loss projection remains unchanged at ¥1.2
billion. |
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| Densei-Lambda is revising its full-year projections
primarily due to continued sluggishness in new orders from semiconductor,
information technology, and factory automation systems related customers.
Despite emerging signs of economic recovery abroad, excess inventory levels
among Japanese manufacturers have taken longer than expected to normalize,
further impacting sales. |
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| The Company also completed the transfer of
all shares held in its former subsidiary NDEC to NEC Fielding in December
2001, impacting consolidated sales figures in the second half of fiscal
2001. This transfer is not expected to affect non-consolidated sales. Additionally,
Densei-Lambda expects to incur a one-time extraordinary write off reflecting
closure of its factory in Kanoya City in April 2002, increasing net losses
for the year. |
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| Although the Company moved quickly to implement
cost-cutting initiatives in areas including salaries, overall headcount,
fixed costs, and procurement from the beginning of the interim period, financial
benefits of these measures will not be realized until after the close of
fiscal 2001. |
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| Densei-Lambda also today adjusted its full-year
non-consolidated forecasts for fiscal 2001. The Company is now projecting
non-consolidated sales of ¥29.3 billion, an ordinary loss of ¥1.4
billion, and a net loss of ¥1.6 billion. These forecasts compare to
revised projections announced on September 14, 2001, of ¥30.0 billion
in sales, a ¥1.1 billion ordinary loss, and a ¥0.9 billion net loss,
respectively. |
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| Takeo Suzuki, President of Densei-Lambda, said,
"Although we had expected adverse business conditions to affect the
capital expenditure of key customers, the weak operating environment which
characterized fiscal 2001 has persisted for longer than anticipated."
He added, "We continue to implement comprehensive and aggressive cost
reductions as well as productivity improvements and are determined to expand
our customer base, building on our position as an industry leader with sustainable
growth." |
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| For further inquiries, please contact: | |
| Masami Kobashi, Managing Director, Densei-Lambda | Tel: 3447-4411 |
| Notes to Editors |
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| Headquartered in Tokyo, Densei-Lambda is the
Asian hub of operations for Invensys Power Systems. It is a research and
development center of excellence for DC-DC converters, switching power supply
product development, manufacturing and purchasing. Invensys Power Systems
is an American-based world leader of secure power, energy storage, power
conversion and telecom energy systems with 18,000 employees and $2.5 billion
in sales. |
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| Invensys plc, the international production
technology and energy management group, specializes in helping companies
to improve efficiency, performance and profitability. With close to 76,000
employees, Invensys is headquartered in London, England. |
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| Our Production Management businesses work closely
with customers in order to drive up performance of their production assets
and maximize the return on investments in product technologies. The division
includes Foxboro, Wonderware, Triconex, APV, Eurotherm and Baan and it addresses
the oil, gas, and chemicals; food beverage and personal healthcare; and
discrete and hybrid manufacturing sectors. |
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| Our Energy Management businesses actively work
with clients involved in both the supply and consumption of energy and water,
developing systems using innovative technologies that improve the management
of energy and water costs and the reliability and security of power supplies.
The division includes Energy Solutions, Metering Systems, Home, Appliance
and Climate Controls and Powerware and focuses on markets connected with
power and energy infrastructure and commercial and residential buildings. |
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| We also serve the specialized rail, windpower
and power components markets through Westinghouse Rail Systems, Hansen Transmissions
and Lambda respectively. |
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| -ends- |
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