NEC Fielding Reports Results for the First Half Ended September 30, 2005.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Oct 28, 2005 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. Fielding, Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 2322), an NEC Group company and leading information technology (IT) support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services company in Japan, has announced its consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial results for the first half ended September September: see month. 30, 2005. Sales for the half declined from the preveious first half in harsh sector conditions, however operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. rose marginally and net income posted gains of 10.6% as the group continued to successfully pursue reforms towards its stated V-shaped recovery model. NEC Fielding reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 111.4 billion for the period, less 5.8% than the previous first interim, operating income posted at JPY 4.4 billion, an increase of 0.3%, and net income posted at JPY 3.2 billion, and increas of 10.8% on the previous term's 2.9 billion. Total assets rose marginally to JPY 121.9 billion in the period, shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. rose 9.5% to JPY 59 billion, equity ratio rose 9.5% to 48.5 billion, and shareholders equity per share also rose 9.5% to 1,083 yen per share. Difficult conditions continued in the IT support service market, the Group's core business area, but Fielding sought to continue V-shaped recovery during the period under review by means of business management centered on CS (Customer Satisfaction), reduction of costs through more in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. work, strengthened customer contacts through optimized distribution of personnel, and building a new system focused on expanding operations by promoting cooperative cooperative Organization owned by and operated for the benefit of those using its services. Cooperatives have been successful in such fields as the processing and marketing of farm products and the purchasing of other kinds of equipment and raw materials, and in the business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and stegnthening business capabilities. Consolidated Financial Results for the First Half ended September 30, 2005 Business Results
(millions of yen)
First half ended First half ended Previous FY
30 Sept. 2005 30 Sept. 2004 ended 3/2005
% change % change
Net Sales 111,413 (5.8) 118,232 (2.0) 241,539
Operating Income 4,492 (0.3) 4,479 (45.3) 11,458
Ordinary Income 4,713 (0.7) 4,680 (43.5) 11,693
Net Income 3,216 (10.6) 2,907 (39.9) 4,340
Net Income/Share (y) 58.97 59.31 79.27
Fully Diluted
Net Income/Share (y) -- -- --
Financial Position
(millions of yen)
As of 30 Sept., As of 30 Sept., End of FY
2005 2004 2004
Total Assets 121,974 121.026 123,343
Shareholders' Equity 59,096 56,088 56,088
Equity Ratio (%) 48.5 46.3 46.3
EPS (yen) 1,083.54 1,028.39 1,039.68
Cash Flows
(millions of yen)
First half ended First half ended Full year ended
31 March 2005 31 March 2004
Cash Flow from
Operating Activities 3,739 (2,975) (1,175)
Cash Flow from
Investing Activities (1,030) (2,056) (4,127)
Cash Flow from
Financing Activities (816) (407) (1,223)
Cash and Cash Equivalents
at Period End 4,732 3,924 2,838
Consolidated results forecasts for the full fiscal year ending March 31, 2006 are adjusted from the previous forecasts on July July: see month. 28, 2005. During the second quarter, the effects of the new organizations, implemented with the goal of expanding operations through strengthened business capability and the promotion of cooperative business operations, began to appear, and signs of economic recovery can now be seen, so it is believed that second half results will show the same level on the previous second half. However, given the harsh market, which is expected to further worsen wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. worsen Verb to make or become worse worsening adjn , it is unlikely that those results will make up for first half losses. Adjusted projections for the consolidated year ended March 31, 2006
(Millions of yen)
Net Sales Ordinary Income Net Income
Previous Forecast 250,000 4,000 9,000
(as of July 28, 2005)
Revised Forecast 244,000 12,000 8,000
Difference (6,000) 2,000) (950)
% Change (2.4) (14.3%) (10.6%)
Actual results (FY05/3) 241,539 11,693 4,284
Adjusted projections for the non-consolidated year ended March 31, 2006
(Millions of yen)
Net Sales Ordinary Income Net Income
Previous Forecast 248,000 13,000 8,950
(as of July 28, 2005)
Revised Forecast 242,000 12,000 8,000
Difference (6,000) (1,900) (950)
% Change (2.4) (13.7%) (10.6%)
Actual results (FY05/3) 239,458 11,565 4,284
As a result, projected net sales for the full year have been revised down 2.4% to JPY 244 billion, while ordinary income has been revised down 14.3% to JPY 12 billion and net income has been revised down to JPY 1.0 billion, a reduction of 11.1%. Projected Results for the Year Ending March 31, 2006
(Units: millions of yen)
FY06/3(Est.) FY05/3 Change Change(%)
Proactive Maintenance
Operations 97,000 108,075 (11,075) (10.3)
Fielding Solutions
Operations 147,000 133,463 13,536 10.1
Total sales 244,000 241,539 2,460 1.0
Operating income 11,800 11,458 341 3.0
Ordinary income 12,000 11,693 306 2.6
Net income 8,000 4,340 3,659 84.3
ROE-consolidated 13.6% 7.9% 5.7%
EPS-consolidated (yen) 146.68 79.27 67.41
NEC Fielding aims to provide its shareholders with a return on their investment by responding appropriately to changing business conditions, increasing competitiveness, and so boosting corporate value. Management believes that this goal can only be achieved by satisfying two conditions: establishing a stable business foundation, and developing the financial strength and internal reserves that future business expansion will demand. As such, it is after due consideration of these issues that NEC Fielding hopes to make steady dividend payments commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with operating results. In line with the above policy, the Company decided to pay a cash dividend of 15 yen per share at the interim of the current fiscal year. Internal reserves will be prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. committed to strengthening the Company's financial position, and to investment toward our future growth by upgrading our core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
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