Japanese electronics group NEC cut its net profit outlook by 40% for the business year just ended, widely missing the market's consensus due to restructuring costs, a Reuters report said.
But it said restructuring in its mobile phone and microchip operations would likely help operating profit exceed NEC's previous forecast by 15%, the Reuters report added.
NEC, which makes servers, computers and telecom equipment, has been trimming costs at struggling subsidiaries as it eyes demand for new networks from financial institutions and phone operators, the report said.
The electronics conglomerate now expects a net profit of 18 billion yen ($173 million) for the year ended March 31, down from its previous forecast of 30 billion yen ($288 million) on restructuring at battery making unit NEC Tokin, a cancelled sale of assets and a write-down of deferred tax assets, the Reuters report said.
That compares with a consensus estimate of 27.7 billion yen ($267 million) by 14 analysts polled by Reuters and a 9.1 billion yen ($87.6 million) profit the previous year.
In operating terms, NEC was helped by fixed cost cuts at microchip unit NEC Electronics, which raised its annual operating profit outlook to 5 billion yen from the previous forecast of zero.